Trinidad and Tobago: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics, Banking Supervision, and Payment Systems
IMF Staff Country Reports, February 1, 2006
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- Trinidad and Tobago: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics, Banking Supervision, and Payment Systems
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Bibliographic details
- Published: February 1, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451837643.002
Summary
- Discusses Trinidad and Tobago’s (TTO) Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on Banking Supervision, and Payment Systems.
- TTO’s financial system is described as relatively large and structurally complex, demonstrating both sophistication and oligopolistic concentration.
- The system does not appear to be vulnerable to immediate-term macroeconomic shocks, but its risk profile has evolved.
- Stress tests and the assessment of compliance with Basel Core Principles indicate that the banking system is well capitalized and profitable, but is vulnerable to the potential macroeconomic impact of a sharp fall in energy prices.
Key findings
- Financial system characteristics:
- "Relatively large and structurally complex"
- "Demonstrating both sophistication and oligopolistic concentration"
- Resilience and vulnerabilities:
- Not vulnerable to immediate-term macroeconomic shocks (as assessed in the report).
- Vulnerable to the potential macroeconomic impact of a sharp fall in energy prices.
- Banking system condition:
- Well capitalized.
- Profitable.
- Vulnerabilities identified through stress tests and Basel Core Principles assessment.
Analytical methods and standards assessed
- Stress testing of the banking system to evaluate resilience under adverse macroeconomic scenarios.
- Assessment of compliance with Basel Core Principles for effective banking supervision.
Subjects and keywords (as provided)
- Subjects: Banking, Commercial banks, Financial institutions, Financial services, Insurance, Insurance companies, Mutual funds
- Keywords: banking sector, capital, Caribbean, CBTT, Commercial banks, CR, credit risk, exchange rate, financial market, foreign exchange, Insurance, Insurance companies, ISCR, mutual fund, Mutual funds, secondary market, TTO Home Mortgage Bank