Barbados - Banking SystemsBarbados - Banking Systems
The banking system in Barbados includes a number of banks servicing commercial, developmental, and offshore needs. The CBB, established in 1972, is responsible for the administration of monetary policy, regulation of exchange controls, and supervision of commercial banks and other financial institutions. The CBB has special arrangements for discounting loans made by commercial banks to tourism, agriculture, and manufacturing. The CBB also operates an export credit guarantees scheme, covering up to 75 percent of amounts paid in advance of an export. Commercial and political credit risks after shipment may be insured up to 90 percent of gross invoice value.
Commercial banking facilities are provided by the branches of three Canadian banks and two regional banks. Citibank established a merchant bank in 2001. Financing using domestically generated funds is generally available only to Barbadians or permanent residents of Barbados. The Caribbean Financial Services Corporation is a major source of medium and long-term financing for projects that contribute to economic growth, such as tourism, manufacturing, agro-industries, service industries, and cooperatives.
Several offshore banks operate in Barbados, licensed under the Offshore Banking Act. These banks take foreign funds for deposit, sell or place foreign currency securities, and make loans, advances and investments. Trusts, exempt insurance companies, and international business corporations also offer offshore financial services.
Other financial institutions, such as local finance houses and trust companies, offer a range of services, such as leasing, installment purchase loans, factoring, and hire purchase. Life insurance and trust companies offer long-term individual and commercial mortgages.
Republic Bank (Barbados) Limited formerly Barbados Mortgage Finance Company Ltd. also provides mortgage loans to low-income borrowers.