The Bahamas: Financial Sector Assessment Program-Technical Note on Financial Stability and Stress Testing

July 1, 2019

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Format: Chicago

The Bahamas: Financial Sector Assessment Program-Technical Note on Financial Stability and Stress Testing, (USA: International Monetary Fund, 2019) accessed December 21, 2024

Summary

Macrofinancial risks stem from the economy’s vulnerability to external shocks to tourism and real estate investment, exposure to frequent and severe hurricanes, and a small and illiquid real estate market. Stress tests reveal the overall banking system is resilient to a range of adverse scenarios given large aggregate capital and liquidity buffers. Some domestic banks and the two largest credit unions are more vulnerable to asset quality shocks and tail risk conditions. Asset quality and profitability are key determinants of financial institutions’ resilience to adverse shocks. Liquidity, market, sovereign and financial contagion risks are low. The offshore banking sector is not a source of traditional banking risks.

Subject: Banking, Credit, Credit bureaus, Environment, Financial institutions, Financial markets, Financial sector policy and analysis, Money, Natural disasters, Nonperforming loans, Stress testing

Keywords: Bank asset quality, Bank assets, Bank performance, Bank portfolio, Banking sector, Bond portfolio, Central bank, CR, Credit, Credit bureaus, Credit loss, Credit risk, Global, Hurdle rate, Interest rate, ISCR, Maturity mismatch, Natural disasters, Nonperforming loans, NPL level, NPL ratio, Price index, Stress testing

Publication Details

Pages:

67
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/202
Stock No:

1BHSEA2019005
ISBN:

9781498323307
ISSN:

1934-7685

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