This paper presents key findings of the Detailed Assessment of the Observance of Standards and Codes in the Financial Sector of Bermuda. The small number of licensed deposit-taking institutions in Bermuda are part of the broader financial intermediation sector. Typically, some 50 percent to 60...

Compensating balances are deposits the borrowing firm keeps with the lending bank in non-interest bearing accounts on loans. It is well known that, when there is no compensating balance imposed, the effective cost of debt remains the same in the two different payment methods, full amortization...