Edge
Use the latest browser recommended by Microsoft
Get speed, security and privacy with Microsoft Edge

Navigation

Contact Us

Email:
hrinfo@centralbank.org.bb - Human Resources Matters
hrapplications@centralbank.org.bb - Applications for Employment
More
Fax:
(246) 427-4074 - Accounts
(246) 437-3334 - Banking
(246) 437-3334 - Bank Supervision
(246) 429-9510 - Currency
More
Address:
Tom Adams Financial Centre
Spry Street
Bridgetown
Barbados

Expanding the Central Bank’s Tool Kit: Credit Guarantee Schemes in a Small Island Developing State by Shekira Thompson and Winston Moore

  • Central Bank Of Barbados
  • 31 Dec,2021
  • 50
  • Working Papers,
  • Print

The COVID-19 pandemic was a negative shock to the real economy which induced both liquidity pressures and operating losses for firms across the world as well as weakened their insolvency. Monetary authorities were left to contend with harmonising the accuracy of their policy measures with the speed of reaching those most affected. Utilising a combined empirical approach of Propensity Score Matching (PSM) and scenario analysis, this study evaluates the impact of credit guarantee schemes as a counter-cyclical tool during a crisis in the small open economy of Barbados. The results suggest that credit guarantee schemes represent a viable monetary policy tool during a crisis to shift persistent liquidity from the banking sectors to the illiquid corporate sector.

Expanding the Central Bank's Tool Kit_WP3v1