Financial Sector Assessment : Barbados

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.

Bibliographic Details

Main Authors:	World Bank, International Monetary Fund
Language:	English en_US
Published:	World Bank, Washington, DC 2014-03
Subjects:	ACCOUNTING, ASSET MANAGEMENT, ASSET QUALITY, ASSET RATIO, ASSET VALUES, ASSETS RATIOS, BALANCE SHEET, BANK CREDIT, BANK LENDING, BANK SUPERVISION, BANKING SECTOR, BANKING SYSTEM, BANKRUPTCY, BANKRUPTCY LAW, BID, BROKERAGE, BROKERS, CAPACITY BUILDING, CAPITAL ADEQUACY, CAPITAL MARKET, CAPITAL MARKET DEVELOPMENT, CAPITAL MARKETS, CAPITAL MARKETS DEVELOPMENT, CAPITAL REQUIREMENTS, CAPITALIZATION, CASH PAYMENT, CENTRAL BANK, CENTRAL SECURITIES DEPOSITORY, CHECKING ACCOUNTS, COLLATERAL, COLLATERAL REGISTRY, COMMERCIAL BANK, COMMERCIAL BANK LOANS, COMMERCIAL BANKING, COMMERCIAL BANKS, CONSUMER LOANS, CONSUMER PROTECTION, CORPORATE GOVERNANCE, CREDIBILITY, CREDIT CARDS, CREDIT GROWTH, CREDIT INFORMATION, CREDIT PROVISION, CREDIT QUALITY, CREDIT RATING, CREDIT RATINGS, CREDIT RISK, CREDIT STANDING, CREDIT UNION, CREDIT UNIONS, CREDITOR, CURRENT ACCOUNT DEFICIT, DEBT LEVELS, DEBT SECURITIES, DEBTOR, DEPOSIT, DEPOSIT INSURANCE, DEPOSIT TAKING INSTITUTION, DEPOSITORS, DEPOSITS, DISBURSEMENTS, ENFORCEABILITY, ENFORCEMENT POWERS, EQUITIES, EQUITY MARKET, EUROBOND, EXTERNAL DEBT, FINANCIAL CRISIS, FINANCIAL INFRASTRUCTURE, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL STABILITY, FINANCIAL SUPPORT, FINANCIAL SYSTEM, FISCAL DEFICIT, FIXED EXCHANGE RATE, FIXED INCOME, FIXED INCOME MARKET, FORECLOSURE, FORECLOSURE PROCEDURES, FOREIGN BANKS, FOREIGN CURRENCY, FOREIGN EXCHANGE, FOREIGN EXCHANGE TRANSACTIONS, FOREIGN FINANCIAL INSTITUTIONS, GOVERNMENT BONDS, GOVERNMENT DEBT, GOVERNMENT DEBT SECURITIES, GOVERNMENT GUARANTEES, GOVERNMENT INVESTMENTS, GOVERNMENT SECURITIES, GOVERNMENT SECURITIES HOLDINGS, GROSS DOMESTIC PRODUCT, HOLDINGS OF GOVERNMENT SECURITIES, ILLIQUID MARKET, INSIDER TRADING, INSTITUTIONAL INVESTOR, INSTITUTIONAL INVESTORS, INSURANCE, INSURANCE COMPANIES, INSURANCE CORPORATION, INSURANCE INDUSTRY, INSURANCE POLICIES, INSURANCE PREMIUMS, INTERNATIONAL BANKS, INTERNATIONAL INSURANCE, INVESTMENT ASSETS, INVESTMENT PORTFOLIOS, INVESTMENTS IN EQUITY, ISSUANCE, LABOR MARKET, LEGAL FRAMEWORK, LEGAL PROTECTION, LEVEL OF RISK, LEVEL PLAYING FIELD, LIABILITY, LIFE INSURANCE, LIFE INSURANCE COMPANY, LIFE INSURANCE PRODUCTS, LINES OF CREDIT, LIQUID ASSETS, LIQUIDATION, LIQUIDITY, LIQUIDITY RATIOS, LOAN CLASSIFICATION, LOAN OFFICE, LOAN PORTFOLIOS, LOCAL CURRENCY, MACROECONOMIC CONDITIONS, MACROECONOMIC MANAGEMENT, MACROECONOMIC RISKS, MARKET CONDITIONS, MARKET PRICE, MARKET PRICES, MARKET RISK, MARKET RISKS, MARKET STRUCTURE, MATURITY, MATURITY MISMATCHES, MONETARY FUND, MONETARY POLICIES, MORAL HAZARD, MORAL SUASION, MORTGAGE, MORTGAGE FINANCE, MORTGAGE LOAN, MORTGAGE LOANS, MORTGAGES, MOVABLE ASSETS, MUTUAL FUND, MUTUAL FUNDS, NATIONAL BANK, NON-PERFORMING LOAN, NON-PERFORMING LOANS, NONPERFORMING LOANS, NPL, OFFSHORE BANKS, OLD-AGE PENSIONS, OPERATIONAL INDEPENDENCE, PENSION, PENSION FUNDS, PERSONAL LENDING, PERSONAL LOANS, PERSONAL MORTGAGE, PORTFOLIO, PORTFOLIO ALLOCATIONS, PORTFOLIO PERFORMANCE, PRIMARY MARKET, PRIVATE CAPITAL, PRIVATE CAPITAL INFLOWS, PRIVATE CREDIT, PRIVATE INVESTMENTS, PRIVATE PLACEMENT, PRUDENTIAL STANDARDS, PRUDENTIAL SUPERVISION, PUBLIC DEBT, REAL ESTATE LOANS, REGULATORY CONSTRAINTS, REGULATORY FRAMEWORK, REGULATORY STANDARDS, REPAYMENT, RESERVE, RESERVES, RETURN, RETURN ON ASSETS, RISK EXPOSURES, RISK MANAGEMENT, RISK PROFILE, SAFETY NET, SAFETY NETS, SECONDARY MARKET, SECONDARY MARKET ACTIVITY, SECURITIES, SECURITIES MARKETS, SEIZURE, SEIZURE PROCEDURE, SHARE OF GOVERNMENT SECURITIES, SHAREHOLDERS, SMALL BUSINESS, SOLVENCY, SOVEREIGN DEBT, SOVEREIGN RISK, STOCK EXCHANGE, SUPERVISORY POWERS, T-BILL, TAX, TAX EXEMPTION, TAX INCENTIVES, TERRORISM, TRADING, TRANSACTION, TRANSPARENCY, TREASURY, TREASURY BILLS, UNDERWRITERS, VALUATION, VALUATION FRAMEWORK, VALUATION STANDARDS, VALUATIONS, VARIABLE RATES,
Online Access:	http://documents.worldbank.org/curated/en/2014/03/19377348/barbados-financial-sector-assessment https://hdl.handle.net/10986/18242
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