The Bahamas: Financial System Stability Assessment
Electronic Access:
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Summary:
The Bahamas appears to be resilient to current threats to its financial stability, but action is needed to safeguard against potential weaknesses. There is a large stock of problem assets that needs to be dealt with from a variety of perspectives: systemic risk monitoring, banking supervision, and crisis management. Vulnerabilities to natural disasters and external economic contagion heighten this need. The banking sector dominates the financial system and has focused on residential mortgages and consumer loans during a long period of economic stagnation. Despite poor growth the sector has remained profitable. However, the small domestic residential property market backing most secured lending is prone to shocks and illiquidity. This has historically led to high and persistent levels of nonperforming loans (NPLs), which significantly increase uncertainty and fragility in the banking system.
Series:
Country Report No. 2019/199
Subject:
Anti-money laundering and combating the financing of terrorism (AML/CFT) Banking Commercial banks Credit Credit bureaus Crime Financial institutions Financial markets Money Nonperforming loans
English
Publication Date:
July 1, 2019
ISBN/ISSN:
9781498323277/1934-7685
Stock No:
1BHSEA2019002
Pages:
56
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