## Barbados: Financial System Stability Assessment

_IMF Staff Country Reports, February 12, 2014_

## Source details

**Canonical URL:** [Barbados: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2016/12/31/barbados-financial-system-stability-assessment-41340)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/barbados-financial-system-stability-assessment-41340/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/barbados-financial-system-stability-assessment-41340/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/barbados-financial-system-stability-assessment-41340/bundle-manifest.json)

## Bibliographic details
- Published: February 12, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484300404.002

---

### Executive summary and systemic findings
- The report evaluates the stability of the financial system in Barbados.
- Barbados has a relatively well developed financial system, including a large offshore sector.
- The onshore system is dominated by large, regionally active banks.
- Banking services to the population are also provided by the credit union sector.
- The system includes a mature but concentrated insurance sector with extensive international affiliates.
- Other nonbank financial institutions provide credit and other instruments for savers.
- With a deteriorating fiscal situation and weak growth prospects, Barbados faces considerable macroeconomic vulnerabilities.
- Sovereign risk is a concern, given a large public debt, high fiscal deficits, and slow growth.
- Policy options are limited by a fixed exchange rate regime.

### Key risks and vulnerabilities
- Large public debt.
- High fiscal deficits.
- Slow economic growth.
- Fixed exchange rate regime constraining policy responses.
- Sovereign risk that could affect financial sector stability.

### Institutional structure and market characteristics
- Large offshore financial sector alongside the onshore system.
- Onshore banking dominated by large, regionally active banks.
- Credit union sector provides retail banking services.
- Insurance sector is mature but concentrated and has extensive international affiliates.
- Presence of other nonbank financial institutions offering credit and saving instruments.

---

## Content in this bundle

- **Barbados 2013 Article IV Consultation, IMF Country Report No. 14/53; January 24, 2014**
  - [Barbados 2013 Article IV Consultation, IMF Country Report No. 14/53; January 24, 2014 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1453.pdf.md){rel="alternate" type="text/markdown"}
  - [Barbados 2013 Article IV Consultation, IMF Country Report No. 14/53; January 24, 2014 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1453.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/barbados-financial-system-stability-assessment-41340_