2014年-IMF国际货币组织全球_Barbados_Financial_System_Stability_Assessment_64页_808kb

Financial System Stability Assessment of Barbados (February 2014)

Core Content

Barbados has a relatively well-developed financial system, featuring a large onshore commercial banking sector and a significant offshore financial sector. The system includes credit unions, insurance companies, and mutual funds, with the offshore sector being financially segregated from the domestic economy. The report highlights the need to strengthen the resilience of the financial system against systemic risks, particularly in the context of deteriorating macroeconomic conditions and weak growth prospects.

Main Points

• Financial System Overview:

  • The onshore system is dominated by large, regionally active banks.
  • The offshore sector is primarily composed of international banks engaged in treasury and wealth management.
  • Credit unions and insurance companies also play a role in providing financial services.

• Macroeconomic Background:

  • The economy has been struggling since the global financial crisis, with GDP declining by about 0.7 percent in 2013.
  • High public debt (128% of GDP) and fiscal deficits (8–9% of GDP) have increased sovereign risk.
  • The fixed exchange rate regime limits policy options and has led to a decline in foreign reserves.
  • Inflation has dropped from nearly 11% to 2%, but external imbalances have widened.

• Key Vulnerabilities:

  • The banking sector has seen a significant increase in nonperforming loans (NPLs), which have risen from 3.5% in 2008 to nearly 14% in 2013.
  • Credit quality and profitability have deteriorated due to weak economic conditions.
  • Stress tests indicate that the financial system is vulnerable to severe shocks, particularly in the credit union and offshore banking sectors.
  • The insurance sector lacks robust liability valuation standards and data on foreign affiliates, posing potential risks.

• Regulatory and Supervisory Framework:

  • Barbados has improved its legal and supervisory frameworks following the 2008 FSAP recommendations.
  • The Financial Services Commission (FSC) has taken over supervision of non-bank financial institutions.
  • However, there are gaps in regulatory independence, enforcement, and data collection, especially in the offshore and insurance sectors.

• Crisis Management and Safety Nets:

  • The deposit insurance fund is small, and a strategic plan, target ratio, and improved payout procedures are needed.
  • The FSC and CBB should enhance cooperation and coordination for crisis management.
  • Credit unions currently lack a safety net, and their supervision needs to be strengthened.

Key Recommendations

• Bank Supervision and Regulation:

  • Review and update loan classification and provisioning requirements.
  • Strengthen the independence of the Central Bank of Barbados (CBB) and enhance enforcement actions.
  • Conduct on-site examinations for onshore and offshore banks not visited in the past five years.

• Insurance Supervision:

  • Improve supervisory colleges and crisis management coordination.
  • Establish robust valuation standards and risk-based capital adequacy requirements.
  • Develop a national crisis management plan for the insurance sector.

• Credit Unions:

  • Implement a two-tiered supervisory approach.
  • Enhance resolution procedures and improve data collection.

• Access to Finance:

  • Develop a credit information function and real estate price index.
  • Introduce a collateral registry for movable assets.
  • Improve credit enforcement through a more effective bankruptcy and mortgage foreclosure system.

• Macroprudential Policy:

  • Clarify the mandate and tools of the Financial Oversight Management Committee (FOMC).
  • Develop a real estate price index to monitor credit risk.

Key Information

• The financial system is dominated by large international banks and credit unions.
• The offshore sector is financially segregated and does not pose a major risk to the domestic economy.
• The fiscal situation is deteriorating, with high public debt and fiscal deficits.
• The fixed exchange rate regime and capital controls have limited policy options and may become less effective over time.
• Stress tests show that the system is vulnerable to severe shocks, particularly in the credit union and offshore banking sectors.
• Regulatory improvements and stronger supervision are needed to enhance resilience and stability.