alwyn jordan : shaping the caribbean's banking landscape remarks by mr alwyn jordan, deputy governor of the central bank of barbados, at the caribbean association of banks'50th anniversary dinner, bridgetown, 24 october 2024. * * * tonight, we gather to celebrate a remarkable milestone – 50 years of the caribbean association of banks. this half - century journey is not just the story of an association, but the evolution of a region's financial landscape. it reflects our collective strength, vision and commitment to the development of our economies and societies. the caribbean association of banks or cab, has long served as a vital pillar in the region's financial ecosystem. since its inception, cab has played an instrumental role in shaping the caribbean's banking landscape, guiding the development of a resilient and inclusive financial services industry that meets both regional and international standards. our banking systems in the region are more robust, responsive and vibrant, as a result of the collaboration across the caribbean's financial institutions which has been fostered by cab, and this ensures that our banks are well - equipped to handle the evolving challenges of the global economy. this is exemplified in the fact that following the covid - 19 pandemic - induced job losses and economic strains, the capital adequacy ratios of banks across the region have strengthened on average, reflecting the resilience of our institutions. similarly, nonperforming loan ratios, which peaked in 2020, decreased significantly in 2023, compared to the prior two years. this reduction is a clear indicator of the ongoing stabilization and recovery within our financial sector ; demonstrating our ability to effectively navigate through adversity and emerge stronger. history of cab building on this legacy of collaboration, cab has evolved over the past 50 years from its humble beginnings to meet the changing dynamics of our financial sectors in the region. initially formed in 1974 as a direct response to the region's need for greater financial independence and reduced reliance on external providers, cab's founding goal was to support the ownership and development of a financial services industry with the capacity to satisfy the financial needs of people in the region. in its early years, cab played a vital role in uniting regional financial institutions and acting as an advocate for indigenous banks. the association aimed to ensure regulatory compliance, promote economic growth, and improve financial services accessibility in the caribbean. over the decades, cab has expanded its scope to address emerging challenges in the global financial landscape, such as anti - money laundering and the

risk. there is a nontrivial risk, every time you go out in your car, that you will become involved in an accident. that doesn ’ t prevent us from driving our cars, even though the cost of an accident may be considerable, because we have insurance. secondly, we have to consider the impact of risk minimisation on our efficiency. we can minimise the risk of damage to our car by using it as little as possible, and taking the bus to work and school. not many barbadians are persuaded that is an efficient thing to do. thirdly, all of us have incorrect perceptions of risk. most people don ’ t realise that the risk of being murdered is actually lower than the risk of dying in a car accident, almost anywhere in the world. and even statisticians who are aware of it don ’ t derive any particular reassurance from that knowledge. fourthly, there are the risks we cannot know. on cctv on saturday evening i watched an animated debate between experts on either side of the debate about genetically modified foods. the truth of the matter is that the current generation of genetically modified foods has not been around long enough, in sufficiently widespread use, for us to know what the long term effects might be. the same is true of prolonged use of cellphones and computers. bis central bankers ’ speeches there are more technical imponderables with respect to the measurement of risks that cannot be readily explained in a short speech. for those who have an interest, i can recommend the excellent book " the black swan " by nassim taleb, which i reviewed for the central bank ’ s economic review, available on the central bank of barbados website. the complexity of the it security challenge is aptly illustrated by an email members of the barbados information society received from the late great james corbin, just before his tragic death. in it he reported that computer power was now available to uncover even the most secure password, by a massive process of iteration, in shorter times than we would have expected. does that mean we should not have secure passwords? absolutely not ; we should be as secure as is reasonable, using numerals in combination with upper and lower case letters. but i, for one, will not henceforth ever compose a password that is longer than is called for by the programme or service i am using. in view of the complexity of the issues, and the number of unknowables, what we may expect