The Trinidad and Tobago Banking System: Some Stylized Facts

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The Trinidad and Tobago Banking SystemSome
Stylized Facts

• Ewart S. Williams
• Governor
• Central Bank of Trinidad and Tobago

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Selected Economic Indicators
Source Central Statistical Office and Central
Bank of Trinidad and Tobago
Inflation and Reserves data are for Sept. 2006
External A/c data are provisional to June 2006
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Commercial BanksChanges in Assets and Liabilities
(Annual Average Growth Rates per cent)
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Conglomerates Share of Total Assets - 2004
Source Central Bank of Trinidad and Tobago
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Contribution to Total Assets of the Financial
System
(per cent)
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Aggregate Mutual Fund Values and Commercial Bank
Deposits
Source Central Bank of Trinidad and Tobago
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Sectoral Distribution of Commercial Bank Loans
Source Central Bank of Trinidad and Tobago
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Exposure of Domestic Banking System
(TT Millions)
Source Central Bank of Trinidad and Tobago
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Macro Prudential IndicatorsSelected Countries
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Interest Rate Spreads
Source ECLAC based on official data
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Distribution of Loans by Interest Rate Bands
(per cent)
Source Central Bank of Trinidad and Tobago
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Challenges for Regulation

• the presence of financial conglomerates
• the increase in cross-border lending
• the introduction of higher risk lending

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Pending Legislative Amendments

• The Central Bank is currently amending
  legislation to
• provide for the supervision of conglomerates
• to accommodate a harmonized approach to
  regulation among regional jurisdictions,
  including the exchange of information
• to emphasize risk-based capital adequacy and
• to strengthen risk management and governance
  procedures

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The end