The Central Bank of Barbados was established in May 1972 by the Government of Barbados to advance the pace of economic development in the country. Prior to 1972, the East Caribbean Currency Authority (ECCA) was the institution responsible for the management of monetary matters for most of the smaller Eastern Caribbean countries, including Barbados.
However, the ECCA did not regulate financial institutions, and since it held responsibility for a number of territories, there was no guarantee that ECCA’s policies would be acceptable, or appropriate to each jurisdiction. This paved the way for the establishment of the Central Bank of Barbados. Furthermore, the founding of the Central Bank of Barbados was seen as key to accelerating the pace of Barbados’ economic development in the post-Independence era.