DOCSLIB.ORG

Studies and Perspectives Series – the Caribbean – No

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Studies and Perspectives Series – the Caribbean – No ISSN 1727-9917 eclac subregional studies and headquarters SERIES PERSPECTIves for the caribbean Economic Survey of the Caribbean 2011-2012 Positive growth amidst lingering downside risks Dillon Alleyne Tom Amonde Michael Hendrickson Kohei Yoshida Michele Dookie 23 Economic Survey of the Caribbean 2011-2012: Positive growth amidst lingering downside risks Dillon Alleyne Tom Amonde Michael Hendrickson Kohei Yoshida Michele Dookie The 2011-2012 edition of the Economic Survey of the Caribbean was prepared under the supervision of Dillon Alleyne, Coordinator of the Economic Development and Integration Unit, Economic Commission for Latin America and the Caribbean (ECLAC), subregional headquarters for the Caribbean, with the assistance of Michael Hendrickson, Tom Amonde and Kohei Yoshida, Economic Affairs Officers, and Michele Dookie, Research Assistant. The views expressed in this document, which has been reproduced without formal editing, are those of the authors and do not necessarily reflect the views of the Organization. United Nations publication ISSN 1727-9917 LC/L.3623 LC/CAR/L.402 Copyright © United Nations, May 2013. All rights reserved Printed in United Nations Member States and their governmental institutions may reproduce this work without prior authorization, but are requested to mention the source and inform the United Nations of such reproduction. ECLAC – Studies and Perspectives series – The Caribbean – No. 23 Economic Survey of the Caribbean 2011-2012… Contents Abstract ..................................................................................................... 7 Introduction .............................................................................................. 9 I. Subregional Analysis ...................................................................... 10 A. The global economic situation and the Caribbean response ..... 10 1. Slow recovery and continuing downside economic risks . 10 2. Unemployment in developed countries ............................ 13 B. GDP growth performance in the Caribbean ............................. 14 C. Fiscal policy and public debt .................................................... 16 1. Public debt ........................................................................ 18 2. Debt service payments ...................................................... 20 D. Monetary policy, inflation and domestic credit ........................ 22 1. Inflation ............................................................................ 22 2. Measures of monetary policy ........................................... 23 3. Liquidity and interest rates ............................................... 23 4. Domestic credit................................................................. 24 E. Balance of payments ................................................................ 25 1. Current accounts ............................................................... 25 2. Financial and capital account ........................................... 27 3. International reserves ....................................................... 28 F. Outlook for 2012 and recommendations .................................. 29 II. Country briefs ................................................................................. 31 A. Bahamas ................................................................................... 31 1. General trends .................................................................. 31 2. Economic policy ............................................................... 31 3. Evolution of the main variables ........................................ 32 B. Barbados ................................................................................... 33 1. General trends .................................................................. 33 2. Economic policy ............................................................... 34 3. Evolution of the main variables ........................................ 34 3 ECLAC – Studies and Perspectives series – The Caribbean – No. 23 Economic Survey of the Caribbean 2011-2012… C. Belize ............................................................................................................................................. 35 1. General trends ................................................................................................................ 35 2. Economic policy ............................................................................................................ 35 3. Evolution of the main variables ..................................................................................... 36 D. Eastern Caribbean Currency Union ................................................................................................ 37 1. General trends ................................................................................................................ 37 2. Economic policy ............................................................................................................ 38 3. Evolution of the main variables ..................................................................................... 39 E. Guyana ........................................................................................................................................... 40 1. General trends ................................................................................................................ 40 2. Economic policy ............................................................................................................ 41 3. Evolution of the main variables ..................................................................................... 41 F. Jamaica ........................................................................................................................................... 42 1. General trends ................................................................................................................ 42 2. Economic policy ............................................................................................................ 43 3. Evolution of the main variables ..................................................................................... 43 G. Suriname ........................................................................................................................................ 44 1. General trends ................................................................................................................ 44 2. Economic policy ............................................................................................................ 45 3. Evolution of the main variables ..................................................................................... 45 H. Trinidad and Tobago ...................................................................................................................... 46 1. General trends ................................................................................................................ 46 2. Economic policy ............................................................................................................ 46 3. Evolution of the main variables ..................................................................................... 47 Annex ....................................................................................................................................................... 49 Annex 1 Policies implemented to cope with the economic crisis ......................................................... 50 Annex 2 Statistical Appendix ............................................................................................................... 54 Annex 3 Statistical Annex .................................................................................................................... 61 Studies and Perspectives series, The Caribbean: Issues published .................................................... 85 Tables TABLE 1 UNEMPLOYMENT RATES ................................................................................................ 13 TABLE 2 CARIBBEAN: GDP GROWTH RATES, 2007-2011 .......................................................... 14 TABLE 3 CARIBBEAN SECTORALa COMPOSITION, GROWTH RATES AND CONTRIBUTION, 2009-2010 ................................................................................... 15 TABLE 4 UNEMPLOYMENT RATES, 2000-2011 ............................................................................. 15 TABLE 5 CARIBBEAN CENTRAL GOVERNMENT FISCAL EXPENDITURES BY CATEGORIES ............................................................................................................... 16 TABLE 6 FISCAL BALANCE ............................................................................................................. 17 TABLE 7 PUBLIC DEBT, 2009-2011 .................................................................................................. 19 TABLE 8 DEBT SERVICE PAYMENTS RATIOS FOR CARIBBEAN ............................................ 21 TABLE 9 INFLATION, 2008-2011 ...................................................................................................... 22 TABLE 10 MONETARY POLICY MEASURES IN 2011..................................................................... 23 TABLE 11 LIQUIDITY AND INTEREST RATES, 2010-2011 ............................................................ 24 TABLE 12 GROWTH IN DOMESTIC CREDIT ..................................................................................
Load more

Recommended publications
  • Redjet Return up in the Air! BRIDGETOWN, - All Appears to Be Lost for Hutson Revealed As Much in an April 1 Interview Barbados-Based Carrier Redjet
    VOL. 6, NO. 7 • April 4, 2012 618 Strouds Lane, Pickering, ON L1V 4S9 • Tel: 905.831-4402 • Fax: 416.292.2943 • Email: [email protected] 360 Degree Financial’s Founder Facing Fraud Charges Toronto police recently announced fraud charg- was also licensed to sell life insurance and accident es against former 360 Degree Financial Services and sickness insurance by the Financial Services Founder and President Wilton Neale. The Finan- Commission of Ontario. cial Crimes Unit announced 10 counts of fraud over Neale incorporated 360 Degree Financial Services $5,000 and one count of fraud under $5,000 against Inc. on Feb. 2, 2005. He was the sole officer and di- Wilton Neale, 50, who headed two investment firms, rector of 360˚, which was also licensed by FSCO to 360 Degree Financial Services Inc. and Multiple sell insurance products. 360˚ was party to a distribu- Streams of Income Inc, and who has already been tion agreement with AGF Trust which enabled 360˚ sanctioned by both the Ontario Securities Commis- to apply on behalf of its customers to AGF Trust for sion and the Financial Services Commission of On- loans which were required to be invested in RSP eli- tario. gible products. FSCO issued a permanent cease and Police say they have been investigating allega- desist order against 360˚ on March 4, 2009 prohibit- tions of fraud involving the two firms since June of ing it from carrying on the business of insurance. last year. In unveiling the charges, they said that be- According to the Securities Commission Reports tween October 2007 and February 2010, Neale “con- during 2007 and 2008, 360˚ was experiencing finan- vinced victims to invest funds in his companies that cial difficulty.
    [Show full text]
  • OECS – Draft Final Report Factors Inhibiting Intra-Regional Travel Mar 2015
    DRAFT FINAL REPORT Ref: PE2/003 Contract Title: A Study on the Factors Inhibiting Intra-Regional Travel in the OECS Prepared for the OECS Commission and Provided with the Support of the European Union by El Perial Management Services MARCH 26, 2015 DRAFT FINAL REPORT Ref: PE2/003 Contract Title: A Study on the Factors Inhibiting Intra-Regional Travel in the OECS Table of Contents List of Acronyms .................................................................................................................. i Executive Summary ............................................................................................................ 1 Chapter I – Introduction .................................................................................................... 6 Chapter II – Understanding the Intra-OECS Travel Market............................................. 12 Chapter III – Structure of Intra-OECS Airfares ........................................................................... 28 Chapter IV – Analysis of Current Network Connectivity .......................................................... 50 Chapter V – Review of Legal and Regulatory Framework for Civil Aviation in the OECS ...... 65 Chapter VI – Action Plan and Technical Assistance Plan .......................................................... 74 Appendix 1 – Detailed Review of Legal and Regulatory Framework for Civil Aviation in the OECS………………………...................................................................................78 DRAFT FINAL REPORT Ref: PE2/003 Contract
    [Show full text]
  • Barbados RISK & COMPLIANCE REPORT DATE: March 2018
    Barbados RISK & COMPLIANCE REPORT DATE: March 2018 KNOWYOURCOUNTRY.COM Executive Summary - Barbados Sanctions: None FAFT list of AML No Deficient Countries US Dept of State Money Laundering assessment Higher Risk Areas: Not on EU White list equivalent jurisdictions Offshore Finance Centre Compliance with FATF 40 + 9 Recommendations Medium Risk Areas: Failed States Index (Political Issues)(Average Score) Weakness in Government Legislation to combat Money Laundering Major Investment Areas: Agriculture - products: sugarcane, vegetables, cotton Industries: tourism, sugar, light manufacturing, component assembly for export Exports - commodities: manufactures, sugar and molasses, rum, other foods and beverages, chemicals, electrical components Exports - partners: Trinidad and Tobago 20.8%, US 11.9%, St. Lucia 9.7%, St. Vincent and the Grenadines 6%, Jamaica 5.6%, Antigua and Barbuda 4.9%, St. Kitts and Nevis 4.6%, UK 4.4% (2012) Imports - commodities: consumer goods, machinery, foodstuffs, construction materials, chemicals, fuel, electrical components Imports - partners: Trinidad and Tobago 35.9%, US 26.9%, China 5.6% (2012) 1 Investment Restrictions: The Government of Barbados, through Invest Barbados, strongly encourages foreign direct investment in Barbados. The government offers special incentive packages for foreign investments in the hotel industry, manufacturing, and offshore business services. The services sector holds the largest potential for growth, especially in the areas of financial services, e-commerce, tourism, educational, health, and cultural services. In agriculture, the slow demise of the sugar industry has opened up land for other agricultural uses, and investment opportunities exist in the areas of agro-processing, alternative and renewable energy, and hydroponics. In the financial services sector, the government has improved its regulatory oversight, and the industry is thriving under better regulatory standards, designed to prevent money laundering and tax evasion.
    [Show full text]
  • (2019–2023) MARCH 2019 This Document Was Prepared by Juan Carlos De La
    PUBLIC SIMULTANEOUS DISCLOSURE DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK AND THE INTER-AMERICAN INVESTMENT CORPORATION IDB GROUP COUNTRY STRATEGY WITH BARBADOS (2019–2023) MARCH 2019 This document was prepared by Juan Carlos de la Hoz (CCB/CBA), Laura Giles Álvarez (CCB/CCB), Francisco Javier Urra (CCB/CBA), Juan Pedro Schmid (CCB/CCB), Kimberly Waithe (CCB/CBA), Shamar Kadeem Blenman (CCB/CBA), Marcelo Javier Paz (DSP/DCO), Maria Cecilia Acevedo Villalobos (DSP/DCO), Dora Moscoso (MIF/OPU), Vashtie K. Dookiesingh (GRU/CTT), Ruth Simone Houliston (GRU/CBA), Mario Vinicio Rodriguez Pineda (VPC/FMP), and Maria Camila Padilla (VPC/FMP), with contributions by all relevant VPS sector specialists and Moises Schwartz (CCB/CCB) under the direction of Therese Turner-Jones (CCB/CCB). In accordance with the Access to Information Policy, this document is being released to the public and distributed to the Bank’s Board of Executive Directors simultaneously. This document has not been approved by the Board. Should the Board approve the document with amendments, a revised version will be made available to the public, thus superseding and replacing the original version. Table of Contents I. COUNTRY CONTEXT 2 II. THE IDB GROUP PRESENCE IN BARBADOS 5 III. PRIORITY AREAS 9 IV. PROJECTED LENDING FRAMEWORK 21 V. STRATEGY IMPLEMENTATION 21 VI. RISKS 23 ANNEX I: BARBADOS: COUNTRY STRATEGY RESULTS MATRIX i ANNEX II: INDICATIVE LENDING FRAMEWORK vi ANNEX III: SELECTED ECONOMIC AND SOCIAL INDICATORS FOR BARBADOS vii ANNEX IV: COUNTRY STRATEGY DEVELOPMENT EFFECTIVENESS MATRIX viii ANNEX V: MANAGEMENT’S RESPONSE TO THE COUNTRY PROGRAM EVALUATION ix Electronic Links i. COUNTRY DEVELOPMENT CHALLENGES FOR BARBADOS ii.
    [Show full text]
  • I Societies W Liabilities P
    BARBADOS INTERNATIONAL SOCIETIES WITH RESTRICTED LIABILITY A guide for business executives involved in International Business and Investment Activities PWC PricewaterhouseCoopers (www.pwc.com) is the largest professional service firm in the world. We provide industry-focused assurance, tax, advisory and corporate services for private and public clients, helping them to build value, manage risk and improve performance. Across the Caribbean, the PricewaterhouseCoopers network provides a fully integrated range of professional services to local, regional and international clients from offices located in Antigua, Aruba, the Bahamas, Barbados, the British Virgin Islands, the Cayman Islands, Curacao, Grenada, Jamaica, the Dominican Republic, Puerto Rico, St. Lucia, St. Maarten, Trinidad & Tobago, the Turks & Caicos Islands and the U.S. Virgin Islands. Table of Contents Introduction . .2 PricewaterhouseCoopers in Barbados and the East Caribbean . .3 Why Barbados? . .4 Establishing an International Society with Restricted Liability . .6 Start-up and ongoing operational costs . .7 THE ISLAND OF BARBADOS n Integrity and Professionalism . .9 n Geography, Climate and Population . .10 n History . .12 n Politics, Government and Judiciary . .13 n Economy, Trade and Industries . .14 n Money, Banking and Finance . 16 n Transport and Communication . 17 n Infrastructure and Social Environment . 18 Appendices I. Key Legal Requirements . 22 INTERNATIONAL SOCIETIES WITH RESTRICTED LIABILITY pwc 1 Introduction With a long history of political and economic stability and commitment to free enterprise, Barbados has developed into a major domicile for international business within the Eastern Caribbean. This guide has been prepared by PricewaterhouseCoopers East Caribbean. It provides background information to help business executives evaluate the advantages of establishing an International Society with Restricted Liability (SRL) in Barbados.
    [Show full text]
  • Annual Report 2011 - 2012
    airports authority of jamaica Thinking Development . Moving Ahead ANNUAL REPORT 2011 - 2012 AIRPORT HISTORY, VISION, MISSION AND CORPORATE VALUES AIRPORT HISTORY The Airports Authority of Jamaica (AAJ) was established in 1974, under the Airports Authority Act as an independent statutory body to manage and operate both the Norman Manley International (NMIA) and Sangster International (SIA) Airports. In 1990 the AAJ was given the operational responsibility for the four domestic aerodromes namely; Tinson Pen in Kingston, Ken Jones in Portland, Boscobel in St Mary and Negril in Westmoreland. Sangster International Airport was privatised in April 2003 and is now operated by MBJ Airports Limited (a private consortium) under a thirty-year concession agreement with the AAJ. NMIA Airports Ltd (NMIAL) , a wholly owned subsidiary of AAJ, was established in October 2003, as the airport operator for the Norman Manley International Airport under a thirty-year concession agreement with the AAJ. In 2011 a third International Port of Entry was established, the Ian Fleming International Airport, through the upgrading of the Boscobel Aerodrome to accommodate and process international passengers. airports authority of jamaica 1 VISION STATEMENT “To build and sustain a world-class airport system, which facilitates private investment and partnership and positions Jamaica’s airports as the gateway to the Caribbean and the Americas.” MISSION STATEMENT “To develop a modern, safe and profitable airport system that is environmentally responsible, provides world-class service, and contributes substantially to the national economy while promoting the expansion of air transportation and its related industries.” airports authority of jamaica 2 In an atmosphere of honesty, fairness, and integrity, we commit to our core organizational values – People, Customer Focus, Integrity, Financial Management, Regulatory and Statutory Requirements, Safety and Security and Environment.
    [Show full text]
  • Rating Rationale
    RRRRRR aaaattttiiiinnnngggg Caribbean Information & Credit Rating Services Limited RRRRRRaaaattttiiiioooonnnnaaaalllleeee Government of Saint Lucia XCD 140 million Debt Issue Cari BBB+ (Regional Scale Foreign Currency) (Initial) Cari BBB+ (Regional Scale Local Currency) USD 50 million Debt Issue Cari BBB+ (Regional Scale Foreign Currency) (Reaffirmed) Cari BBB+ (Regional Scale Local Currency) USD 38 million Debt Issue Cari BBB+ (Regional Scale Foreign Currency) (Reaffirmed) Cari BBB+ (Regional Scale Local Currency) Analytical Contacts: RATIONALE SUMMARY Sherry Ann Persad Tel: 1-868-627-8879 Caribbean Information and Credit Rating Services Limited E-mail: [email protected] (CariCRIS) has assigned ratings of Cari BBB+ (local and foreign currency) on its regional rating scale to the XCD 140 million bond Stefan Fortuné Tel: 1-868-627-8879 issue and reaffirmed its ratings of Cari BBB+ (local and foreign E-mail: [email protected] currency) for the USD 50 million and USD 38 million debt issues Disclaimer: CariCRIS has taken due care of the Government of Saint Lucia. These ratings indicate that the and caution in compilation of data for this product. Information has been level of creditworthiness of these obligations, adjudged in obtained by CariCRIS from sources 1 which it considers reliable. However, relation to other obligations in the Caribbean is adequate. CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the The ratings continue to reflect Saint Lucia’s moderate results obtained from the use of such information. No part of this report may macroeconomic performance in the face of an uncertain global be published / reproduced in any form without CariCRIS’ prior written environment.
    [Show full text]
  • Jamaica Trade Policy Framework United Nations Conference on Trade and Development
    UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT JAMAICA TRADE POLICY FRAMEWORK UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT JAMAICA TRADE POLICY FRAMEWORK New York and Geneva 2015 ii TRADE POLICY FRAMEWORK: JAMAICA NOTES Symbols of United Nations Documents are composed of capital letters combined with figures. Mention of such a symbol indicates a reference to a United Nations document. The views expressed in this document are those of the authors and do not necessarily reflect the views of the United Nations Secretariat. The designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the United Nations Secretariat concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a reference to the document number. A copy of the publication containing the quotation or reprint should be sent to the UNCTAD secretariat at: Palais des Nations, 1211 Geneva 10, Switzerland. This publication has not been formally edited. UNCTAD/DITC/TNCD/2013/9 © Copyright United Nations 2015 All rights reserved ACKNOWLEDGEMENTS iii ACKNOWLEDGEMENTS The report was prepared at the request of Ministry of Foreign Affairs and Foreign Trade of Jamaica by an UNCTAD team led by Mina Mashayekhi, Head, Traded Negotiations and Commercial Diplomacy Branch, Division on International Trade in Goods and Services, and Commodities (DITC), UNCTAD. The team was composed of Taisuke Ito, Martine Julsaint-Kidane, Luisa Rodriguez and Mesut Saygili of the Trade Negotiations and Commercial Diplomacy Branch, DITC, UNCTAD.
    [Show full text]
  • August 2011 Newsletter–Guyaneseonline
    August 2011 The Newsletter and Blog for Guyanese Individuals, Associations and Groups Worldwide Blog: guyaneseonline.wordpress.com Trinidad declares a Limited State of USA to forfeit Ed Ahmed’s assets if he Emergency to control crime is convicted for mortgage fraud (Newsday) Trinidad– August 22, 2011 August 21, 2011 - KNEWS At midnight last night (August 21, 2011, TT was placed Prosecutors in the mortgage fraud case against New under a limited state of emergency to facilitate anti- York-based Guyanese businessman Edul Ahmad has crime curfews in hot spots, as announced a few hours given notice that they will seek the forfeiture of his prop- earlier by Prime Minister Kamla Persad-Bissessar. erties if he is convicted. Ahmad who was indicted on ten counts relating to bank fraud could also be deported The measure specifically al- at the end of his sentence if convicted, according to a lows the 5,000 Defence Force legal source. powers of search and seizure, and of arrest, so they will be A federal grand jury in Brooklyn has returned an indict- able to better supplement the ment charging Ahmad with participating in a mortgage work of the TT Police Service, fraud scheme in which he and others fraudulently ob- she explained. Details are due tained more than $50 million in loans. today of the areas in which the curfew takes effect. Ahmad‘s indictment alleges the defendant conspired to defraud financial institutions, including Bank of New At a 15 minute news briefing at York, JP Morgan Chase, Citibank, N.A., Countrywide her Phillipine home at 8 pm, Financial, Flushing Savings Bank, Fremont Investment she said the documents to ef- and Loan, HSBC Bank USA, N.A., IndyMac Bank, One fect the state of emergency — a proclamation and regu- West Bank, U.S.
    [Show full text]
  • A Review of the Financial Regulatory Framework of Barbados
    Anthony Wood Kimarie Clement A Review of the Financial Regulatory Framework of Barbados Abstract It is well established in the literature that the financial system plays a pivotal role in the development process. Thus, it is incumbent on gov- ernments to have strong and effective regulatory regimes in place to protect investors, ensure orderly functioning of financial institutions and markets, and maintain confidence and stability in the financial system. An area of regulation receiving renewed attention in recent times is the institutional structure of financial regulation; specifical- ly, whether the existing institutional arrangements for regulation are resulting in comprehensive and effective regulation of the financial system. These discussions have been driven to a large extent by chang- es in the structure of the financial services industry globally and the disruption to financial systems in many countries. While the type of institutional structure may not be the main de- terminant of regulatory effectiveness, an inappropriate or outmoded structure can impede the attainment of regulatory and supervisory goals. The aim of this paper is to examine the adequacy of the finan- cial regulatory framework in Barbados. Specifically, the paper seeks to determine whether the current architecture of financial regulation provides suitable coverage of all areas of regulation, and whether the Anthony Wood, Lecturer in Economics, The University of the West Indies. Kimarie Clement, Bank Examiner, Central Bank of Barbados. Corresponding author: <[email protected]>. Monetaria, January-June, 2015 Central Bank’s responsibility for prudential regulation and monetary policy is appropriate and in keeping with best practice. Data were ob- tained via an interview survey with managerial personnel of the regu- lators (Central Bank of Barbados, Financial Services Commission and Fair Trading Commission) and selected financial institutions during the period July to September 2014.
    [Show full text]
  • Foreign Exchange Pressure in Barbados: Monetary Approach Or Monetary Dependence?
    ISLANDS AND SMALL STATES INSTITUTE UNIVERSITY OF MALTA, MSIDA, MALTA OCCASIONAL PAPERS ON ISLANDS AND SMALL STATES ISSN 1024-6282 Occasional Paper Number: 04/2018 Foreign exchange pressure in Barbados: monetary approach or monetary dependence? Darrin Downes & Tarron Khemraj More information about the series of occasional paper can be obtained from the Islands and Small States Institute, University of Malta. Tel: 356-21344879; email: [email protected]. Foreign exchange pressure in Barbados: monetary approach or monetary dependence? Darrin Downes, Central Bank of Barbados Tarron Khemraj, New College of Florida ABSTRACT This paper tests competing ideas accounting for the foreign exchange (FX) losses in Barbados in recent years. The conventional monetary and absorption approaches have motivated the explanation and policy proposals to date. However, this paper illustrates that the conventional theories fail to account for the external forces determining FX pressure. We propose a theory of monetary dependency by integrating the basic insight of the Prebisch-Singer hypothesis into an institutionally-consistent monetary framework. The model implies that the narrow policy space in the short run is overwhelmed by the falling FX supply in the long term – hence the long-term FX constraint. This constraint, moreover, prevents complete adjustment as predicted by the reflux mechanism. Although Barbados is the case study – given its recent program with the IMF – the model of monetary dependence is applicable, in general, to small very open developing countries. The econometric results indicate tenuous support for the monetarist theory, but stronger evidence in favor of the monetary dependency theory. Consistent with the prediction of latter theory, the trade-weighted American dollar exchange rate and its conditional volatility are the strongest determinants.
    [Show full text]
  • Financial Stability Report 2012
    Financial Stability Report 2012 CENTRAL BANK OF BARBADOS Central Bank of Barbados i Financial Stability Report 2012 Table of Contents Abbreviations ................................................................................................................................. iii Preface............................................................................................................................................ iv 1 Overview ................................................................................................................................. 1 2 Trends in Financial Sector Activity ......................................................................................... 2 3 Banking System ....................................................................................................................... 3 3.1 Commercial Banks’ Financial Soundness Indicators ..................................................... 13 4 Non-Bank Financial Institutions ............................................................................................ 23 5 Credit Unions ......................................................................................................................... 26 5.1 Insurance Companies ..................................................................................................... 30 6 Stress Test Analysis ............................................................................................................... 33 6.1 Credit Risk.....................................................................................................................
    [Show full text]