The Central Bank of The Bahamas (CBOB) is in the final stages of establishing an online registry for moveable collateral, which would allow borrowers to use more of their assets other than real estate or fixed assets to secure credit.

This, in the wake of a reported 25 per cent increase in loan applications to domestic banks in the first half of the year. The movable collateral registry would complement and expand the range of options that individuals and businesses have in terms of raising capital.

According to CBOB Governor John Rolle, the Central Bank along with the Ministry of Finance are at the advanced stage of a diagnostic exercise to establish an online registry for moveable collateral. A moveable collateral registry would facilitate and encourage increased, secure lending for business ventures by both banks and sophisticated private financiers.

Registry will allow for centralised assets tracking

According to Rolle, it allows for the centralised tracking of assets (including intellectual property) that would have been pledged and allows investors to give credit against such assets, knowing that their security against the asset is unique and the said asset is not being pledged multiple times for credit.

Broad private consultation on the proposal will begin as soon, as the government is fully briefed through the Cabinet. The CBOB states that a moveable collateral registry would facilitate and encourage increased, secure lending for business ventures by both banks and sophisticated private financiers.

The latest lending conditions survey reveals that the volume of applications for business and personal loans increased during the first half of 2021, with a corresponding overall net increase in the volume of approved credit.

Although the success rate for mortgage applications was slightly lower, Governor Rolle indicated that more loans were approved overall.