Local financial industry experts say the ability of Barbadians to repay their loans could be impacted by rising inflation due to the ongoing war in Ukraine.Despite that increased risk of non-performing loans, however, regulators said stress test results suggest that “the financial sector is in a position to absorb large but plausible shocks to non-performing loans, profits and liquidity without the occurrence of systemic instability”.“This improved large-exposure non-performing stress tests result compared to the previous year is again due to a reduction in some of the balances of the largest exposures and stronger capital positions,” said the recently released Financial Stability Report 2021.It noted that individuals continued to account for the greatest level of credit exposure among the financial systems’ main lenders.
