Quantitative Assessment of a Financial System—Barbados
April 1, 2005
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Summary
A banking system module is incorporated into the Central Bank of Barbados's multisectoral macroeconomic forecasting model, and a medium-term forecast is generated for bank capitalization, profitability, liquidity and nonperforming loans. Stress tests are performed for the first year of the forecast, to test the banking system's resilience to real sector shocks. The analysis, which would in practice be only part of the vulnerability assessment, indicates that the banking system is stable and resilient to macroeconomic shocks of a type and magnitude that Barbados has experienced in the past.
Subject: Banking, Commercial banks, Financial Sector Assessment Program, Loans, Nonperforming loans
Keywords: bank, banking system, capital, loan, ratio, WP
Pages:
20
Volume:
2005
DOI:
Issue:
076
Series:
Working Paper No. 2005/076
Stock No:
WPIEA2005076
ISBN:
9781451860955
ISSN:
1018-5941
