Barbados - Financial Sector Assessment : Based on the Joint International Monetary Fund (IMF) - World Bank Financial Sector Assessment Program (FSAP) Update
The principal objective of the mission was to update the FSAP conducted in 2002 focusing on financial system stability and specific institutional development issues. The mission also provided an assessment of the observance of international standar...
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| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English |
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World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20090416010332 http://hdl.handle.net/10986/3034 |
| Summary: | The principal objective of the mission
was to update the FSAP conducted in 2002 focusing on
financial system stability and specific institutional
development issues. The mission also provided an assessment
of the observance of international standards and codes in
financial regulation and supervision for the banking and
securities sectors as well as of the development needs of
the financial system and its potential contribution to
economic development. Preliminary results of the mission
were discussed with the authorities during the subsequent
IMF Article IV mission. The 2008 FSAP update for Barbados
took place in the context of considerable turmoil in global
financial markets. Encouragingly, the financial system in
Barbados has been little affected by this turmoil and the
macroeconomic situation remains robust with economic growth
continuing to benefit from healthy tourism numbers and
ongoing construction activity. As a result, the unemployment
rate continues near historic lows. Nonetheless, economic
prospects are tied to continuing tourism and, as such, to
the slowing economic performance in Europe, particularly the
United Kingdom, and the United States. The offshore
financial sector appears insulated from the onshore banking
system, thus limiting the risk of contagion. Barbados will
continue to face competition from offshore financial centers
in the region. To differentiate itself, the country is
seeking to continue strengthening its reputation for
stability and a selective licensing process, and to develop
a workforce with strong skills in financial services.
However, the authorities continue to face the challenge of
overseeing a large number of very heterogeneous financial
institutions with constrained resources. |
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