The Bahamas: Financial System Stability Assessment

July 1, 2019

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Format: Chicago

The Bahamas: Financial System Stability Assessment, (USA: International Monetary Fund, 2019) accessed November 21, 2024

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.

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

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Assessments of board, Bank asset quality, Bank assets, Bank boards of directors, Bank portfolio, Bank resolution legislation, Banking system, CBOB recommendation, CBOB supervision, Central bank of The Bahamas, Commercial banks, CR, Credit, Credit bureaus, Credit risk, Financial system, Global, Interest rate, ISCR, Liquid asset, Nonperforming loans, Price index

Publication Details

Pages:

56
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/199
Stock No:

1BHSEA2019002
ISBN:

9781498323277
ISSN:

1934-7685

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