Barbados’ financial system continues to demonstrate resilience, supported by solid regulation, improving global credibility and steady progress in modernising its payments infrastructure, according to recent assessments by the Central Bank of Barbados and the Financial Services Commission.
These themes were underscored in July, when the two regulators hosted a roundtable to launch the 2024 Financial Stability Report. The report concluded that Barbados’ financial system remains stable, with strong capital and liquidity buffers across institutions. Stress-testing exercises further confirmed that the system remains sound under baseline economic conditions, reinforcing confidence in the island’s financial architecture.
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Key risks remain under review
While the overall assessment was positive, the report identified several areas that require continued vigilance. Chief among them is global economic uncertainty. Rising protectionism, sustained high interest rates and geopolitical tensions all pose potential risks to small, open economies like Barbados.
A significant external shock could weaken the tourism sector, drive up domestic prices and place pressure on households and businesses. Such conditions could lead to higher loan defaults, with knock-on effects for banks and other financial institutions.
Climate-related risks were also highlighted as an increasing concern. Extreme weather events have the potential to disrupt economic activity, particularly in tourism and coastal real estate, and could lead to sharp increases in loan defaults. Banks, insurers and pension funds remain especially exposed to these climate-driven risks, reinforcing the importance of long-term resilience planning.
Cybersecurity emerged as a third area of focus. As digital financial services expand and payment systems become more interconnected, exposure to cyber threats continues to grow. A major cyber incident could disrupt payment flows and undermine public confidence in the financial system, making robust safeguards and oversight essential.
Modernising payments with BiMPay
A major step in strengthening Barbados’ financial infrastructure came in August with the official launch of BiMPay, the island’s national instant payment system. The Central Bank unveiled the system’s name and branding, alongside a detailed outline of how it will operate and the benefits it is expected to deliver.
Governor Dr Kevin Greenidge emphasised that BiMPay is designed to complement existing payment options rather than replace them. Cash and traditional banking channels will remain in use, while consumers and businesses gain the added convenience of real-time digital payments.
The launch was supported by engagement with key stakeholders, including the World Bank and the Barbados Bankers Association, and marked the start of a broad public education campaign. Through social media, radio, print media and online content, the Central Bank has been preparing Barbadians for BiMPay’s planned go-live date in March 2026.
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Strengthened international standing
Barbados’ financial credibility received a further boost in August when the island was officially removed from the European Union’s blacklist. This followed its removal from the Financial Action Task Force (FATF) grey list earlier in February 2024, reflecting sustained improvements in anti-money laundering and counter-terrorism financing frameworks.
In recognition of this work, members of the FATF Core Implementation Team and the International Business Unit Economic Substance Team — including representatives from the Central Bank — were awarded Gold Awards of Achievement at the Independence Awards in November.
Governance and oversight
Additional institutional reforms continued throughout the year. In September, the Central Bank announced the establishment of the National Payments Council, chaired by Deputy Governor Alwyn Jordan. The council will play a central role in guiding and overseeing the evolution of Barbados’ payments ecosystem, including the rollout and long-term governance of BiMPay.
Together, these developments point to a financial system that is not only stable, but actively adapting to new risks, technologies and international standards. As Barbados balances resilience with innovation, the continued focus on oversight, credibility and modern infrastructure positions the country’s financial sector for sustainable growth in the years ahead.
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