Narrow Your Choices

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Western Hemisphere > Belize

You are looking at 1 - 1 of 1 items for :

  • Type: Journal Issue x
  • Money Supply; Credit; Money Multipliers x
Clear All Modify Search
Cover IMF Working Papers
Problem Loans in the Caribbean: Determinants, Impact and Strategies for Resolution
Ms. Kimberly Beaton
,
Mr. Thomas Dowling
,
Dmitriy Kovtun
,
Franz Loyola
,
Ms. Alla Myrvoda
,
Mr. Joel Chiedu Okwuokei
,
Ms. Inci Ötker
, and
Mr. Jarkko Turunen
The high level of nonperforming loans (NPLs) in the Caribbean has been, in large part, a legacy of the global financial crisis, but their persistence owes much to the weak economic recovery in the region, as well as to structural obstacles to their resolution. A comprehensive strategy is needed to address these impediments to sever the adverse feedback loops between weak economic activity and weak asset quality. This paper finds that NPLs are a drag on Caribbean growth and macro-financial links are strong: a deterioration in asset quality hinders bank lending and dampens economic activity, undermining, in turn, efforts to resolve problem loans. A multifaceted approach is needed, involving a combination of macro- economic policies to support growth and employment; strong supervisory frameworks to ensure macro-financial stability and create incentives for resolution; efforts to address informational gaps and deficiencies in insolvency and debt-enforcement frameworks; and development of markets for distressed loans. The institutional capacity constraints require coordination of reforms within the region and support from international organizations through capacity-building.
Keywords:
WP; NPL ratio; asset quality; NPL resolution; economic activity; Macro-financial linkages; nonperforming loans; resolution; the Caribbean; affect bank lending; Loans; Distressed assets; Credit; Collateral; Caribbean; Global