Regulatory Alerts2013-03-26
DBFIA Practice Direction No. 1: Requirements for Treatment of Interest on Savings Deposits
The Central Bank of Belize issued this Practice Direction under the Domestic Banks and Financial Institutions Act to prescribe requirements for calculating interest on savings deposits held by licensees. The document mandates that interest be calculated on the closing available daily balance using a 365-day year and requires payment at the end of each interest period, including for inactive accounts. Additionally, licensees must disclose both the annual nominal and annual effective interest rates in all advertisements and to customers before account opening, while excluding US dollar denominated accounts from these specific calculation provisions.
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