15May2013
Financial Stability Report 2013 Even before the global financial crisis of 2008, the financial system in Barbados had grown in size and complexity resulting in a number of regulatory innovations as regulators attempted to keep pace with the changing environment. This ongoing monitoring and legislative fine-tuning have been key pillars in supporting the financial architecture and the overall stability of the system in an adverse post-crisis economic environment. Since 2008, there have been several upgrades to the legislative framework and updated guidelines have been issued by both the Central Bank of Barbados and Financial Services Commission to ensure that the industry is operating in line with international best practices. In addition, continued exchanges between the regional and international supervisors have also contributed to the effective consolidated and cross-border monitoring of institutions. Moreover, significant progress has been made towards the development of a regional financial stability assessment report and work on a regional crisis management and resolution plan has already begun. ...
15Mar2013
Financial Stability Report 2012 The financial system remained resilient amid dampened domestic economic activity and the protracted correction in global financial markets. Asset growth at Deposit Taking Institutions (DTIs) was moderate. The system remained liquid and profitable, as entities continued to hold more capital than required by local regulatory or international guidelines, suggesting that the banking system as a whole is able to withstand various economic shocks. Moreover, commercial banks, which dominate deposit taking activity, are all affiliated with strong international or regional parent banks, which are all well capitalised. ...
13Aug2012
Financial Stability Update 2012 This is the first update of the Central Bank of Barbados’ Financial Stability Report, produced in collaboration with the Financial Services Commission (FSC). The Central Bank and the FSC are jointly responsible for the continuous oversight of the financial system, to assess vulnerabilities and to initiate policies to increase the resilience of the system in the face of possible adverse events. The Central Bank’s Financial Stability Unit works with the FSC’s staff to ensure that the assessment of risk exposures covers the activities of banks, international banks, insurance companies, international insurance and reinsurance companies, nonbank deposit taking financial institutions, credit unions, the activities of the Barbados Securities Exchange and issues and redemptions of government securities. This update analyses a range of financial stability indicators for banks and other financial institutions, as well as balance sheet and income and expenditure trends. For the banking system, financial forecasts are used to project a baseline of expectations for capital adequacy and the quality of credit. Stress tests are applied to the baseline, progressively increasing the pressure until capital adequacy falls below the eight percent minimum which the Central Bank stipulates. Progressive stress tests are also used to test for possible contagion among banks, and from banks’ exposures to financial institutions abroad....
27Jan2012
Financial Stability Report 2011 Continuing uncertainty about the prospects for a recovery in the global economy contributed to a lower demand for loans from banks by firms and households, and to a significant slowdown in the growth of domestic deposits. Although asset quality has declined, banks have been resilient over the period of the crisis. Capital adequacy levels have been above the statutory requirements, and banks have remained profitable, although less so than prior to the recession. Credit unions have also faced a slowdown in loan demand and higher non-performing loans, though their ratio is not as high as for banks. Financial institutions operating locally, both banks and insurance companies, are strongly linked with regional and international financial markets. The banks are well insulated from potential loss exposure due to their external asset/liability positions, but both banks and insurance companies are still exposed because of ownership links. ...
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