Barbados Banking

The political and economic stability of a country are what attract foreign business groups to invest in that certain country, luckily for Barbados because it has the two most basic requirements. The business climate in Barbados is one that is diverse but certainly one that is most stable. With the availability of highly skilled and talented professionals, it is no wonder that the country is not the international hub for offshore banking.

The banking system and the government support for the international investors make the country enticed world renowned financial firms and large banking companies to pour in their capital. The government, in fact helps facilitate the international banking firms in their entry to the Barbados banking environment.

Any foreign investors who wish to invest in the Barbados banking systems has to submit their letter if intent and proposal to the Central Bank, after which an approval can be obtained from the Barbados Ministry of Finance. A license is a requisite before an investor can operate in the offshore banking that is part of the Barbados banking system.

In the Barbados banking, offshore investors are also required to be subjected to an annual audit, has to get an annual license that cost US$12,5000, and a sliding scheme of tax collection that range from 2.5% to 1%. The benefits that the investors can get are: for companies that earn more than US$ 15 million will be collected a tax of 1% and 2.5% for international banks and other financial firms US$5 million; direct and withholding taxes are not collected; and exchange is not controlled by the government.

Both the Canadian and the British owned international banks have dominated Barbados banking system. The government's own National Bank is likewise a key player in the banking sector. The country is host to more than 40 offshore banks that passed the entire requirement imposed by the Central Bank and the Ministry of Finance. Barbados banking services are comparable with those banks operating Europe, Canada, and the U.S. Most of the banks are located in the Parish of St. Michael.

For those who want to travel to Barbados it is important to know the banking system of the country, lest you would not freak out when you run out of cash. In Barbados, the banks are open from 8 o' clock in the morning until 3o' clock in the afternoon from Monday to Thursday. During Fridays, the banks can open until 5 o'clock in the afternoon.

The ATM machines are aplenty both in the southern and western portion and also in the capital city of Bridgetown. In the eastern portion there is only one ATM machine, the same in the Belleplaine and St. Andrew. For the non-nationals who plans to open an account in Barbados have to present two ID's like passport or driver's license and the required minimum amount of Bds$25.

The banking sector of Barbados is as friendly as its people. This is one good reason why foreign banks are investing in the country.