## The Bahamas: Financial Sector Assessment Program-Technical Note on Financial Stability and Stress Testing

_IMF Staff Country Reports, July 1, 2019_

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## Bibliographic details
- Published: July 1, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498323307.002

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### Key macrofinancial vulnerabilities
- Macrofinancial risks stem from the economy’s vulnerability to external shocks to tourism and real estate investment, exposure to frequent and severe hurricanes, and a small and illiquid real estate market.

### Stress-testing results and systemic resilience
- Stress tests reveal the overall banking system is resilient to a range of adverse scenarios given large aggregate capital and liquidity buffers.
- Some domestic banks and the two largest credit unions are more vulnerable to asset quality shocks and tail risk conditions.

### Determinants of institutional resilience
- Asset quality and profitability are key determinants of financial institutions’ resilience to adverse shocks.

### Other risk assessments
- Liquidity, market, sovereign and financial contagion risks are low.
- The offshore banking sector is not a source of traditional banking risks.

*International Monetary Fund. The Bahamas: Financial Sector Assessment Program-Technical Note on Financial Stability and Stress Testing. July 1, 2019.*

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_Source: https://www.imf.org/en/publications/cr/issues/2019/07/02/the-bahamas-financial-sector-assessment-program-technical-note-on-financial-stability-and-47071_