Quantitative Assessment of a Financial System - Barbados

21 Pages Posted: 3 Mar 2006

See all articles by Karen Chase

Karen Chase

affiliation not provided to SSRN

Kevin C. Greenidge

International Monetary Fund (IMF)

Winston Moore

affiliation not provided to SSRN

DeLisle Worrell

Central Bank of Barbados; Retired

Date Written: April 2005

Abstract

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.

Keywords: Financial stability, Caribbean

JEL Classification: G21, G20, E44

Suggested Citation

Chase, Karen and Greenidge, Kevin C. and Moore, Winston and Worrell, DeLisle, Quantitative Assessment of a Financial System - Barbados (April 2005). IMF Working Paper No. 05/76, Available at SSRN: https://ssrn.com/abstract=888122

Karen Chase (Contact Author)

affiliation not provided to SSRN

No Address Available

Kevin C. Greenidge

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Winston Moore

affiliation not provided to SSRN

No Address Available

DeLisle Worrell

Central Bank of Barbados ( email )

PO Box 1016
Spry Street
Bridgetown
Barbados
2462564155 (Phone)

HOME PAGE: http://www.DeLisleWorrell.com

Retired ( email )

Glenisla
Fisherpond
St. Jospeh BB21000
Barbados