Financial System Soundness in the Caribbean

A survey of the financial systems of Caribbean countries reveals systems dominated by banks, with services widely available. Jamaica is the only country to have experienced a financial crisis. The paper describes recent improvements in the regulatory framework, and examines factors, which affect the soundness of the financial system, using both intuitive and econometric methodologies. The study identifies regulatory improvements that are needed, as well as additional data and analysis required to complete the assessment, which revealed no new threats to the financial system.Financial sector;banking, financial institutions, financial system, financial assets, bank supervisors, banking system, bank supervision, financial systems, bank fragility, capital adequacy, banking sector, deposit insurance, financial services, return on assets, bank failure, bank credit, offshore banking, bank of jamaica, foreign exchange, financial liberalization, banking crises, banking supervision, return on equity, bank soundness, bank examiners, working capital, banking services, bank for international settlements, financial markets, international banks, nominal exchange rate, bank holding companies, capital base, foreign exchange exposure, eastern caribbean central bank, financial fragility, capital adequacy ratio, liquid liabilities, reserve requirements, bank assets, bank liabilities, financial sector performance, bonds, liquid asset, stock exchange, consolidated supervision, bank holding, retained earnings, connected lending, bank deposits, bank branches, stock exchange capitalization, capital requirement, bank regulations, loan classification, banking sector problems, bank exposures, currency crisis, mortgage lending, financial intermediaries, electronic banking, financial market, external auditor, banking regulation, bank governors, banking crisis, bank performance, stock exchanges, financial intermediation, credit union, bank exposure, banking laws, financial regulation, financial instruments, deposit rates, stock market capitalization, national bank, stock market, banking system assets, banking system stability, financial reform, return on investment, savings bonds, liquidity support, banking law, banking distress, banking business, financial conglomerates, bank intervention, domestic financial markets, international finance, bank loans, regional bank, savings bank, banking concentration, bank deposit, banks ? loan, financial stability, international standards, domestic financial system