Banks outside the United States can provide excellent returns and are sometimes necessary when doing business in a country such as Trinidad and Tobago. Working with banks in Trinidad and Tobago is not only necessary but can provide a competitive advantage. The professionals at these banks know details about the local business climate that can prove invaluable. In addition, the banking regulations can be more advantageous than their American counterparts can be. However, to navigate the banking industries in Trinidad and Tobago, it's important to know some key terms that'll help you allocate capital in the most efficient manner.

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Central Bank of Trinidad and Tobago

The Central Bank of Trinidad and Tobago came about in 1964 because of an act of Parliament. This entity seeks to ensure financial stability of the banking system by acting as the primary bank for the government and through monetary policy. The Central Bank of Trinidad and Tobago is this country's equivalent to the Federal Reserve in the United States.

I recommend: Examine the scope and purpose of the Central Bank of Trinidad and Tobago for more information.

Republic Bank Limited

The Republic bank is one of the largest banks in Trinidad and Tobago. They've evolved over the years into a full-service financial institution that can handle most any financial need.

I recommend: Review the corporate history and current state of the Republic Bank Limited of Trinidad and Tobago.

Deposit Insurance Corporation

The Deposit Insurance Corporation ensures the safety of banking assets in Trinidad and Tobago. If any bank in the country fails, the Deposit Insurance Corporation will refund the money up to a certain limit that's established by legislation.

I recommend: Study the synopsis of the Deposit Insurance Corporation of Trinidad and Tobago for more information.

Repo Rate

The Repo Rate is the main tool that the Central Bank of Trinidad and Tobago uses to influence the interest rate for banks in the country. If your business makes a deposit or takes out a loan with a bank in the country the Repo Rate will influence that rate you receive on both.

I recommend: Evaluate the Repo Rate information available at the Central Bank of Trinidad and Tobago.

Trinidad and Tobago Dollar

The Trinidad and Tobago dollar is the primary currency in the country. If the currency of a country is stable, the banking will follow suit. The structure of this currency is very similar to the U.S. Dollar.

I recommend: Assess the Trinidad and Tobago Dollar information from Go Currency.

Scotiabank Trinidad and Tobago Limited

The Scotiabank Trinidad and Tobago Limited is a leading financial services company in Trinidad and Tobago. They have 23 branches and four large banking centers in Trinidad and Tobago and is a wholly owned subsidiary of The Bank of Nova Scotia.

I recommend: Review the corporate profile of Scotiabank Trinidad and Tobago Limited for further details.

The twin islands of Trinidad and Tobago in the southern Caribbean are home to roughly 1.3 million people with an economy based primarily on trade and tourism. The islands' gross domestic product was estimated at $20.9 billion (US) in 2007. The Central Bank of Trinidad and Tobago, established by an Act of Parliament in 1964, is responsible for the area's economic growth and development. It issues and redeems currency and is the banker to both the government and every other Trinidad and Tobago bank.

There are no restrictions on foreign banks or foreign borrowers in Trinidad and Tobago, and most Trinidad banks offer a wide range of services. There are 6 commercial banks, several foreign banks and roughly 130 credit unions. In addition to the Trinidad and Tobago central bank, banks in Trinidad and Tobago include:

1. Traditional banks for citizens and merchants who simply want a safe place to protect and access their money

2. Investment and commercial banks for people and companies who want additional options and opportunities designed to grow their money

3. Credit unions, agricultural and female-oriented banks centered around the specific needs of these segments

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Consider traditional Trinidad and Tobago banks

The average Trinidad or Tobago resident wants an easily accessible, customer-friendly bank that offers reliable products and services. Local merchants typically look for a similar type of financial institution that will protect their hard-earned money.

I recommend: An institution such as First Citizens Bank or Scotiabank is the perfect choice for typical citizens and merchants in Trinidad or Tobago. Both offer personal banking and small-business services. If you prefer a larger bank with ties that reach far beyond the Caribbean, you might want to consider Citibank Trinidad.

Explore investment opportunities

Banks in Trinidad and Tobago are great for those who are in a position to make their money grow by capitalizing on investment opportunities.

I recommend: Check out CLICO Investment Bank Ltd. and FirstCaribbean International Bank, among others. There are a number of safe havens that offer exciting opportunities to invest your money and watch it grow.

Determine whether you belong in a niche

Some Trinidad banks cater to certain segments of the population. Whether you're a small business, starting a woman-owned business or make a living from agriculture, there are some special products and services geared toward your unique needs. A number of credit unions are available for teachers, policemen and other government employees.

I recommend: One popular Trinidad and Tobago bank, The Inter-American Development Bank, offers loans and grants that help finance projects to reduce poverty and foster private-sector development. Women's World Banking offers credit to low-income women entrepreneurs. The Agriculture Development Bank caters to those in the business of agriculture. Spurred by low competitiveness and tight money-laundering controls on banks, there are more than 100 credit unions on the two islands, as well.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  There are many options for banking in Trinidad. Know your needs and explore your options to select the financial institution that best meets your requirements.

Banks in Trinidad and Tobago are subject to the banking policies determined by the Central Bank of Trinidad and Tobago (the Central Bank). Banking in Trinidad and Tobago is generally open to outside investors.

Trinidad Banks, especially commercial banks in Trinidad and Tobago and other non-bank financial institutions, are monitored by the Central Bank. The Central Bank is the bank of the Republic of Trinidad and Tobago. The Central Bank was formed in 1964, two years after Trinidad and Tobago gained independence.

1. Banks in Trinidad and Tobago laws and regulations are meant to ensure financial stability, good management and risk awareness for financial institutions, including Trinidad and Tobago banks.

2. Banks in Trinidad and Tobago laws and regulations are meant to deter illegal activities such as drug trafficking.

3. Banks in Trinidad and Tobago laws and regulations also work to advise the Government on the best policies for financial and economic activities.

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Get more info on the Central Bank's influence on Trinidad commercial banks

The Central Bank's role in regard to commercial banks and other non-bank financial institutions basically is to insure financial stability. Its most recent amendment (2009) was for the government to provide financial backing for its banks.

I recommend: The Central Bank's website lists who it regulates and what it regulates. The Central Bank also portrays its role as that of supervisor to commercial banks and non-bank financial entities.

Visit the legal source and read up on laws and regulations for Trinidad banks

The Central Bank is the advisor to the government of Trinidad and Tobago. The government enacts the laws and rules that banks follow. What those laws and regulations mean to business are analyzed by expert business and finance authorities.

I recommend: More information on the laws and regulations that affect any Trinidad and Tobago bank are available on the Government's legal affairs web page. The Heritage Foundation measures the financial freedoms in different countries which in part is based on an analysis of a country's banking laws and regulations.

Find out how the laws and regs of a Trinidad and Tobago bank affects doing business

The laws and regulations for banking in Trinidad can affect your business positively one way, or perhaps add more difficulty in other areas. How do experts rate doing business in Trinidad?

I recommend: Trinidad Law is a good resource for addressing laws and regulations surrounding banking with Trinidad banks. The US government's guide on doing business in Trinidad and Tobago is another resource for finding out the laws and regulations for banking and business in Trinidad. Its most recent Country Commercial Guide for Trinidad and Tobago is downloadable.

Banks in Trinidad and Tobago have a good reputation for providing many of the same services offered by US banks. Trinidad banks and, by virtue, Tobago banks, are open to foreign investors and businesses. The twin islands also have a good Internet infrastructure, important for international banking.

Banking in Trinidad includes about 130 credit unions, six commercial banks and a few foreign banks. Trinidad has its own currency similar to the dollar — divisible by 100 cents. English is the official language, making it easy to conduct business with a Trinidad and Tobago bank.

1. The Central Bank of Trinidad and Tobago issues currency, sets interest rates, makes banking policy and provides oversight to all financial institutions.

2. Banking in Trinidad is open to foreign investors and small business.

3. In recent years banking law has changed its requirements to make Trinidad and Tobago more attractive to global banks in Trinidad and Tobago.

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Take a look at Trinidad banks

There is a Trinidad and Tobago bank for every purpose--personal, small business and investing. Getting information on the banks from reputable sources will simplify your search. Using the services of a banking ratings organization is a way of assessing a bank's services.

I recommend: Moody's gives a rating service for Trinidad and Tobago banks. Subscribe to Fitch bank ratings and see the latest news. The Trinidad and Tobago Central Bank provides an informative data center.

Get background on banks and news of awards for banks in Trinidad and Tobago

Knowledge of the banking history in Trinidad can provide a sense of the banking and business future for Trinidad and Tobago. Also seek out information from people businesses who have moved to Trinidad.

I recommend: Read the Expat Exchange for more information on Trinidad and Tobago banking. The RBTT Bank was ranked the top bank in Trinidad and Tobago by The Banker magazine in 2007 and “Bank of the Year - Trinidad and Tobago” by Latin Finance magazine.

Use other means of ranking banks in Trinidad and Tobago

Another means of getting banks in Trinidad and Tobago advice and ratings is to look at financial and business assessments made by expert organizations.

I recommend: The International Finance Group uses a methodology to measure the ease of doing business in over 100 economies. It ranks different economies on the ease of getting credit to the number of days it takes to get it. The Heritage Foundation in conjunction with the Wall Street Journal publishes their findings in the Index of Economic Freedom. Both these indicators will give you a sense of how well Trinidad and Tobago banks can work for your business.