Banks and other financial institutions operating in Barbados should expect increased regulation as authorities move to ensure the system remains sound.
Notice of this was served today by Central Bank of Barbados Governor, Dr. DeLisle Worrell, and the Financial Services Commission Acting CEO, Warrick Ward as the two organisations launched the 2012 Financial Stability Report.
Worrell said changes were pending to the Financial Institutions Act, and that in line with the changing nature of world financial systems there would be a need to continually update related laws.
“What we are finding [is[ that because of the way the financial systems worldwide are changing … there is a constant need to renew and update legislation. So you use to think that you get the legislation, you get it right and you put in place and then you don’t have to go back to amend for a very long time, but that is no longer the case,” he said during the event at the Central Bank.
“We do have to contemplate this ongoing process of legislative amendment and update… We do have a number of amendments to the Financial Institutions Act, the fact that we operate under, which are in process and which have been discussed.”
“So … we are in fact in discussions with the Ministry of Finance and the Chief Parliamentary Counsel’s office to ensure that those come on stream as soon as possible … those are being fast tracked,” he said, noting that the banks regulated by his institution were aware of the intended changes.
Ward, who also pointed out companies within the FSC’s responsibility were being informed of likely changes, said the state agency had done an internal review of all of its legislation and would be submitting recommendations to Government.
In addition to new guidelines for the credit union movement and insurance company, he said improved laws were also part of the regulatory strategy.
“So we have gone through all of our various legislations. We have sent out new guidelines to the industry, we have also sent out new reporting forms that allows us to get the information on a more speedy basis and the types of information that will be required to specifically look at solvency for the insurance industry and also to look at other parameters, which would guide us in order to become more proactive,” he said.
“So I think that we have a pretty good team down at the FSC, people who understand the various types of insurance products that can be brought and so going forward I think that we are in pretty good shape to deal with the insurance industry.
“In terms of the legislation what we have looked at is a holistic of all of the legislation, … not only for our domestic requirements, but also to meet international best practices and international standards that are required,” he added. (SC)