14Jun2018
The 2017 Financial Stability Report The Bank and the FSC have collaborated in the preparation of the seventh issue of Barbados’ Financial Stability Report which provides an assessment of the risk exposures of banks, insurance companies, credit unions and other depository financial institutions. This report analyses a range of financial stability indicators for financial institutions, as well as balance sheet and income and expenditure trends. ...
18Aug2015
Barbados' Financial System Showing Signs of Recovery Evidence of a slowly recovering financial system emerged over the twelve months ending March 2015 as the loan portfolios of major deposit-taking institutions (DTIs), expanded by just over one percentage point of GDP. Commercial banks’ recorded 1.4 percent growth in credit, while the credit unions’ expansion was a more substantial 6.7 percent, albeit from a smaller base. DTIs remain well capitalised, with banks in particular possessing capital levels that make them extremely resilient to substantial economic shocks. Credit risk within commercial banks has been contained as net write-offs continued to average less than one percent per year of total loans....
08Aug2014
Financial Stability Report Updated 2014 Since the release of the last Financial Stability Report (FSR) in January 2014, the financial sector has showed signs of improvement. Despite credit risk remaining high, the level of non-performing loans(NPLs) has declined since September 2013. Furthermore, even though the overall loan portfolio of domestic lending institutions contracted slightly, the mortgage market remained an area of growth across the financial system. At the same time, available funding continued to shift from the private to the public sector. In addition, growth in deposits was moderate and resulted in increased liquidity in the financial system, while capital buffers remained well in excess of the requirements and institutions continued to generate profits. ...
04Aug2014
Financial Stability Report 2014 The Barbadian financial system continued to demonstrate resilience in spite of challenging economic conditions. Over the course of the twelve months ending September 2014, most deposit-taking entities (banks, trust companies and finance houses) and insurance firms faced low demand for major financial products by the private sector. Consequently, growth was weak and in some instances, entities recorded a contraction on their balance sheets. ...
06Jul2013
Financial Stability Update 2013 Since September, the financial system has remained generally stable and well capitalised. Levels of liquidity across all financial institutions continued to be high and entities were generally profitable, though profit margins continued to be compressed. While credit quality declined further at banks, credit unions and non-bank financial institutions experienced no growth in their non-performing loans. For banks, this deterioration was mainly in the personal mortgage and real estate sectors. ...
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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