to give us a competitive edge in the global market for research. i am grateful to professor mamingi, who is the one who spotted the potential for making our research output distinctive in this way. bis central bankers ’ speeches over many years the central bank of barbados has made its name as an institution that is oriented towards research and analysis. the internet and electronic media have offered us the opportunity to get our message to a global audience. however, because there are so many millions who are also clamouring for an internet audience, the central bank has to offer a product that is of interest, and differs from the others. the many ways in which foreign exchange availability constrains our economy, and economies of similar size, constitutes a research agenda that no other central bank appears to be addressing. it is a niche that we at cbb have begun to fill, with working papers on monetary policy, the integration of monetary and fiscal policy, the structure of the small open economy, and several others ; with the publication of our fiscal stability book by the caribbean centre for money and finance, we are leading the caribbean in the direction of analysis that recognises the fx constraint. there is great potential here for us to make this our distinct contribution to the international debate on the diversity of economic policy and the implication for policy implementation. our bank ’ s annual review seminar is now an established part of the caribbean economic landscape, and a marketplace that many of us look forward to each year. it is an opportunity for an enlightening interchange of ideas, and a chance to our interns and many of the region ’ s young economists to gain their spurs. as we go forward, we should seize opportunities to develop insights that will enrich the global economic debate, because the problems we face are not unique to the caribbean. the focus on the foreign exchange constraint to small economies like our own is a vitally important insight. there a scores of counties worldwide who can benefit from our analysis of the implications of this constraint. we must continue to explore the effects of the constraint in our research, and we should use the ars and other avenues of dissemination to the maximum, to get this message out. bis central bankers ’ speeches

delisle worrell : our financial system – fit for purpose? address by dr delisle worrell, governor of the central bank of barbados, to the barbados association of insurance and financial advisors, bridgetown, 26 april 2013. * * * how well does our financial system suit barbados ’ needs? in my address this morning i will examine how the system serves the needs of households and of businesses, and attempt to identify any gaps that should be attended to. i begin by discussing financial services for households. the main items of household credit are mortgages, and the financing of consumer durables. households and individuals are well served by banks, credit unions and finance companies, in the provision of financing of housing, durable consumption goods and amenities. adequate availability of this household finance, on affordable terms, significantly enhances the well - being of the population, which has the benefit of the goods over the period when they are repaying their loans. in an earlier period, before mortgages and consumer credit were widely available, consumers were deprived of the use of goods while they accumulated the funds for cash purchases. individuals and households are not as well served when it comes to alternatives for investing their savings. commercial banks offer poor returns on deposits, invariably below the rate of inflation ; the purchasing power of monies left on deposit at a bank is eroded over time. government paper is the most remunerative financial investment available to individuals. for those with gratuities and large amounts on which they need to earn interest, longer term securities are the best yielding. for those investing funds set aside for contingencies, savings bonds are the best bet. if held to their full term savings bonds carry an interest rate which keeps pace with inflation, and the bonds may be cashed in at any time if needed, albeit with an interest penalty. credit union shares and deposits at credit unions offer somewhat better returns than at banks, but deposits at credit unions are not yet insured, unlike bank deposits, which are protected up to a value of $ 25, 000. retirement income is vulnerable to inflation the financial system does not serve the needs of retirees very well because pensions are not adjusted in line with inflation in the typical domestic scheme. in less than a decade after retirement the average pensioner is unable to maintain his or her standard of living at retirement, purely because of the ravages of inflation, unless they have supplementary income. recent legislation mandating an inflation adjustment is a step in the right direction