- 2025: A Look Back Part 2
By Central Bank of Barbados
BRIDGETOWN, Barbados – In July, the Central Bank of Barbados, in collaboration with the Financial Services Commission, hosted a roundtable discussion to launch the 2024 Financial Stability Report. The report highlighted the strength of Barbados’ financial system, noting that it “remains resilient, underpinned by strong capital and liquidity buffers,” and revealing that “stress testing confirms that the financial system remains sound under baseline conditions.”
At the same time, the report identified three key risks that warrant further monitoring.
Global economic uncertainty, including rising protectionism, high interest rates, and geopolitical tensions could adversely impact financial stability in Barbados. A major external shock could hurt the performance of the vitally important tourism sector, drive up prices, and create financial challenges for households and businesses, leading to borrowers not being able to repay their loans on time, which in turn, could have negative implications for financial institutions.
Climate-related risks were also highlighted, especially for banks, insurers, and pension funds. Extreme weather events could significantly reduce economic output and sharply increase loan defaults in tourism and coastal real estate, threatening financial stability.
In addition, cyber risks have continued to increase with greater reliance on digital financial services, and interconnected payment systems have increased exposure to cyberattacks. Such cyber incidents could disrupt payment systems and damage confidence in the financial system.
The Launch of BiMPay, a New National Payment System
In August, the bank officially launched BiMPay, Barbados’ national instant payment system, unveiling its name and logo. Ahead of the reveal, Governor Dr Kevin Greenidge and Deputy Governor Michelle Doyle were joined by representatives from the World Bank and The Barbados Bankers Association for a discussion on what the system is, how it will operate, and the benefits it will offer to both individuals and businesses.
During the launch,Governor Greenidge emphasised that BiMPay is intended to work alongside existing payment methods, including cash, rather than replace them. While traditional banking channels will remain available, consumers will have the added convenience of instantly sending and receiving payments through the new system.
Following the launch, the bank implemented a multi-pronged public education campaign, utilising social media, blog articles, radio, and newspapers to raise awareness of BiMPay and prepare the public ahead of its planned go-live date in March 2026.
Barbados off the blacklist
Also in August, Barbados was removed from the EU Blacklist. This followed the island’s removal from the Financial Action Task Force’s (FATF) greylist in February 2024.
In November, the FATF Core Implementation team and the International Business Unit Economic Substance Team, which included three representatives from the bank received the Gold Award of Achievement at the Independence awards in recognition of their contributions.
Other activities
In September, the bank announced the establishment of the National Payments Council, which will be headed by deputy governor Alwyn Jordan. The council will play a role in shaping and supervising Barbados’ payments landscape, namely in the launch of the upcoming instant payment system, BiMPay.
