cleviston haynes : redefining our " how " in barbados'financial services sector speech by mr cleviston haynes, governor of the central bank of barbados, at the domestic financial institutions conference, bridgetown, 28 march 2019. * * * today we celebrate the 10 th seminar for domestic financial institutions hosted this year by the central bank of barbados and the financial services commission. as regulators, we recognise that the financial services industry is dynamic and that, together with industry practitioners, we need to constantly reflect on emerging developments and new challenges. this seminar provides an opportunity for us to exchange ideas, to learn from experts, to learn from each other, to develop new ideas and to think of solutions for our challenges. it supports our financial stability initiatives and creates the pathway for building a resilient financial system that supports economic growth through efficient mobilization and allocation of resources. above all, it promotes our quest to develop more robust stakeholder engagement. as we meet today, government is implementing a recovery and transformation programme that is targeted to restore fiscal and debt sustainability, foster growth and rebuild the foreign reserves. it does so in the context of a financial system that features substantial excess liquidity in an environment of weak private sector credit demand and historically low interest rates. in recent months, our financial institutions have shared in the economic adjustment through the domestic debt restructuring. at the same time, implementation of the new ifrs 9 accounting standard has also adversely impacted the profitability and capital of banks and insurance companies. however, the financial system remains stable and adequately capitalized. many persons focus on the stabilization aspect of the programme but this morning i wish to highlight that the process of transformation particularly as it relates to financial services has started. first, the domestic and international banking and insurance sectors each now operate under one act, the financial institutions ’ act and the insurance act, respectively. this convergence of legislation represents the first step towards simplifying the regulatory regimes for these sectors. secondly, the bank and the government are undertaking initiatives to modernise the payments system as we transition to a more digital economy. the initial focus is on reducing the use of cheques and cash in the financial system. government already makes salaries, pensions and debt payments through the electronic rtgs system and their goal is to use the automated clearing house ( ach ) and the rtgs for payments to its suppliers. apart from enabling greater efficiency within government, this should allow suppliers to receive payments on a more timely basis. extending this initiative

delisle worrell : an overview of the financial landscape in barbados speech by dr delisle worrell, governor of the central bank of barbados, at the domestic financial institutions conference, bridgetown, 11 november 2014. * * * barbados has a sound and sophisticated financial system which provides an adequate range and variety of financial services for businesses and households, but there are a few gaps still to be filled. the main impact of the global recession on our financial system has been to reduce profitability among commercial banks, and to arrest the growth of insurance business. the financial landscape is changing largely because of changes in the way that large companies manage their regional and international finance and payments arrangements. my remarks this morning will address these 3 issues. the main financial providers in barbados are the banks - by far the largest segment, insurance companies, credit unions and finance companies. between them, they provide adequately for the needs of households. banks provide mortgages, short term consumer credit and payments services. many people hold savings with commercial banks, even though savings bonds and credit union shares are more remunerative alternatives. banks also provide for the working capital needs of established businesses, and contribute to the funding of projects for larger firms. all banks operating in barbados are part of international banks headquartered in canada and trinidad. they therefore have strong backing. banks'profitability has declined, but loan write - offs are only a tiny percentage of their credit and have not contributed much to the fall in profitability. credit unions are the banks ’ competition. because of their mutual ownership, they are able to offer lower interest spreads than the banks, between what members earn on their shares, and the interest they pay on borrowings. credit unions currently offer most of the services banks offer, and there are no barriers in principle to prevent those credit unions which qualify from providing the remaining services in which they have expressed an interest. insurance and pension funds cover the remainder of the financial services most businesses and households need. the insurance industry contracted with the exit of clico, and there has been little recovery since then. insurance and pension funds look for investment that will yield a good return over the long run, and they are therefore a potential source of funding for capital formation. the weakness of this segment is the limits on the supply of long term finance. what makes matters worse is a preference for investment in marketable securities rather than equity participation in projects. in barbados there is a scarcity of marketable corporate instruments available for purchase and sale on