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....
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. ...
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....
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