Publication: Financial Sector Assessment : Barbados
Date
2014-03
ISSN
Published
2014-03
Author(s)
World Bank
International Monetary Fund
Abstract
The financial system faces a weak
economic outlook and a deteriorating fiscal position posing
substantial macroeconomic risks. As a result, sovereign risk
has increased while the fixed exchange rate further limits
policy options. The financial system has sizeable sovereign
risk exposures and non-performing loans are rising although
high capital and liquidity buffers in combination with
strong parent entities mitigate risks. Credit unions appear
more vulnerable. Since the 2008 financial sector assessment
program (FSAP), the regulatory and supervisory framework has
improved across all sectors. Consolidated risk-based
supervision was introduced in the banking sector along with
a formalization of supervisory methodologies. The government
has committed a major adjustment package aimed at
stabilizing international reserves and consolidating the
fiscal position. Even if planned policies are successful,
Barbados will continue to face challenging growth prospects,
driven by weakened tourism markets, including Canada, the
United Kingdom, and the United States; increased competition
from other offshore jurisdictions; and appreciation of the
real effective exchange rate.
Link to Data Set
Citation
“World Bank; International Monetary Fund. 2014. Financial Sector Assessment : Barbados. © World Bank, Washington, DC. http://hdl.handle.net/10986/18242 License: CC BY 3.0 IGO.”