BRIDGETOWN, Barbados, Monday June 24, 2013 – The World Bank and the International Monetary Fund (IMF) are to conduct a comprehensive study of Barbados’ financial services sector.
A statement from the Central Bank of Barbados said the two Washington-based financial institutions will conduct the financial sector assessment programme (FSAP) between July 1 and 17.
This is the third such assessment of the island’s financial services sector; the other two evaluations were completed in 2002 and 2008.
“On both occasions, the local financial services sector was deemed to be well regulated and generally compliant with the international standards established by the Basel Committee on Banking Supervision (BCBS) and the International Association of Insurance Supervisors (IAIS),” the Central Bank said.
CCB Director of Bank Supervision, Marlene Bayne, explained that the Bank and the Financial Services Commission (FSC) have been jointly preparing for the review since the start of 2012.
She said the preparatory work for the FSAP included a self-assessment of Barbados’ compliance with the international standards for banking, insurance and credit unions.
“This self-assessment sought to identify any weaknesses in the existing system of supervision and regulation, and to allow for the appropriate remedial measures by the supervisory authorities. Following the self-assessment, enhancements to the supervisory framework by way of amendments to the legislation or practices were completed. “
The CCB said that the FSAP, “which can be likened to a Central Bank’s examination of a commercial bank, is a comprehensive and in-depth analysis of a country’s financial sector”.
It said the World Bank and the IMF have been conducting these assessments since 1999 of both developed and developing countries, including the United Kingdom, the United States of America, Canada, Australia, Belgium, New Zealand and India, among others.(CMC) .