The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This paper presents Barbados's Financial System Stability Assessment Update as part of the Financial Sector Assessment Program Update. The domestic banking sector appears sound and profitable and continues to dominate the financial system. The financial system has benefited from the strong economic expansion, which has boosted credit demand while contributing to a steady improvement in banks' asset quality. Capital adequacy for locally incorporated banks remains above the minimum required, and profits remain at healthy levels.