||Central Bank Of Barbados
The Central Bank of Barbados and the Financial Services
Commission have published the 2016 Financial Stability Report, an in depth
analysis of the island’s financial system.
The report, which examines the structure of the financial
services sector as well as the resilience of different classes of financial
institutions, found that “key financial sector indicators point to the
continued stability of the Barbadian financial system during 2016”, and further
stated that “stress tests performed on the financial system suggest that the
system is generally stable and can survive a range of adverse events.”
According to the report, commercial banks continue to
dominate the local financial landscape, holding 55 percent of domestic assets,
with the second largest percentage, 13 percent, being held by insurance
companies. Credit unions, trust and financial companies, mutual funds and
pension funds all controlled similar percentages of the market. It goes on to
examine each type of financial institution and to conduct simulations of events
that could impact its stability.
In addition to its analysis of the island’s financial
institutions, the 2016 Financial Stability report contains two research notes.
The first concerns household debt and its implications for the local financial
system. It looks at the rise of household debt over a 25 year period as well as
the sources of this debt.
The second note is on de-risking, a phenomenon that has
impacted countries in the Caribbean and Latin America as well as Asia and
Africa and that has potential grave implications for the local International
Business and Financial Services (IBFS) sector.
Financial Stability Report 2016.pdf