2014年-世界发展银行全球_Financial_Sector_Assessment___Barbados_38页_877kb

Financial Sector Assessment of Barbados (March 2014)

Core Content

This report provides an overview of the financial system in Barbados, focusing on risks, regulatory framework, crisis preparedness, access to financial services, capital markets development, and macroprudential policy. The assessment was conducted under the Financial Sector Assessment Program (FSAP) by a joint mission from the World Bank and the International Monetary Fund in 2013.

Main Findings

Financial System Risks

• Weak Economic Outlook: The financial system faces a weak economic outlook and a deteriorating fiscal position, which pose significant macroeconomic risks.
• Sovereign Risk: Sovereign risk has increased, and the fixed exchange rate limits policy options.
• Credit Risk: Non-performing loans (NPLs) are rising, and collateral valuations appear overstated, with loan-loss provisions being low.
• Credit Unions Vulnerability: Credit unions are more vulnerable than commercial banks due to limited financial safety net coverage and possible non-viable entities.
• Offshore Sector: The offshore financial sector is not a source of risk as it mainly focuses on treasury operations and wealth management without significant onshore ties.

Financial Regulation and Supervision

• Improvements Since 2008: The regulatory and supervisory framework has improved since the 2008 FSAP.
• Financial Services Commission (FSC): Established in 2011, the FSC has taken over oversight for non-bank financial services sectors and is active in issuing guidelines and training staff.
• Areas for Improvement:
  • Banking supervision needs enhancement in operational independence, enforcement actions, AML/CFT oversight, and loan loss provisioning.
  • Data collection and reporting standards in non-bank financial services sectors remain inadequate.
  • Insurance sector requires better liability valuations, capital adequacy standards, and risk management.
  • Cross-border coordination and group supervision should be strengthened.
  • Credit unions need a two-tiered, risk-based prudential oversight approach.
  • Capital adequacy rules for intermediaries should align with international best practices, and transparency in the mutual funds industry should be enhanced.

Financial Safety Nets and Crisis Preparedness

• Inadequate Safety Nets: Safety net provisions are uneven across sectors and lack sufficient funding and backstop arrangements.
• Crisis Preparedness: Crisis management and coordination at national and regional levels are needed, especially for the insurance sector.
• Resolution Regimes: Resolution regimes require improvement to provide authorities with effective tools and powers.
• Deposit Insurance: The Barbados Deposit Insurance Corporation (BDIC) needs to be well-equipped and should have adequate funding and backstop arrangements.
• Credit Unions: The safety net should be extended to credit unions only after ensuring financial viability and adequate prudential oversight.

Access to Financial Services

• Households: Access to financial services is well-developed for households, with credit unions serving a large majority.
• Firms: Access to finance is a key obstacle for firms, especially small and medium enterprises (SMEs), which mostly finance their investments internally.
• Recommendations:
  • Level the playing field for qualifying credit unions by lifting product restrictions and removing tax exemptions.
  • Improve credit enforcement through a more effective bankruptcy system and mortgage foreclosure procedures.
  • Establish a credit information function, a real estate price index, and a collateral registry for movable assets.

Capital Markets Development

• Inactive Markets: Capital markets are mostly inactive, with the equity market not growing since 2008 and limited market activity.
• Fixed-Income Market: The fixed-income market is dominated by domestic sovereign debt, with corporate issuance minimal.
• Mutual Funds: The mutual fund sector has shown growth in total asset size, with the National Insurance Scheme (NIS) being a key institutional investor.
• Recommendations:
  • Require mutual funds to provide more granular and periodic information.
  • Examine valuation policies and ensure consistency.
  • Revise capital adequacy standards for financial institutions.
  • Finalize regional agreements for cross-listing and mutual recognition of licensed firms.
  • Promote private placement offerings by aligning reporting requirements with sophisticated investors.

Macroprudential Policy

• Real Estate Price Index: A real estate price index should be developed to support macroprudential policy.
• FOMC Mandate: The mandate and tools of the Financial Oversight Management Committee (FOMC) need clarification to align with international standards.

Key Recommendations