IMF Working Papers

Financial Development and Inclusion in the Caribbean

By Chuan Li, Joyce Wong

March 13, 2018

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Chuan Li, and Joyce Wong. Financial Development and Inclusion in the Caribbean, (USA: International Monetary Fund, 2018) accessed November 8, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Many Caribbean financial systems are relatively well developed for their size but benefits are concentrated in a small part of the population. In several large countries, the financial development levels are below what is warranted by that country’s own macroeconomic fundamentals. SMEs, in particular, remain severely credit constrained, and data to inform better analysis remains scarce. Using available data, this paper takes stock of the current state of financial development and inclusion in the Caribbean region and, based on a quantitative general equilibrium model, examines potential trade-offs between growth, inequality, and financial stability—all critical considerations when policies are designed. A case study for Jamaica is examined in detail.

Subject: Collateral, Credit, Financial inclusion, Financial institutions, Financial markets, Financial sector development, Income inequality, Money, National accounts

Keywords: Caribbean, Collateral, Cost, Credit, Fewest firm, Financial Development, Financial Inclusion, Financial sector development, Financial Systems, Firm, Firm employment distribution, Fixed cost, Income inequality, Interest rate, Intermediation cost, Latin America, Leveraged firm, Market, Medium-sized firm, Participation cost, Proportion of firm, WP

Publication Details

  • Pages:

    24

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2018/053

  • Stock No:

    WPIEA2018053

  • ISBN:

    9781484345306

  • ISSN:

    1018-5941

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