Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

118 The 2013 FSAP concluded that the Bank had made significant progress in addressing the concerns identified in the 2008 exercise. However, it was recommended that banking supervision should be strengthened in some areas, including operational independence, enforcement actions and loan-loss provisioning. Oversight for non-bank entities Although the Bank did not have oversight for non-bank financial institutions, it was mindful of the fact that problems encountered by one of these entities had implications for the entire financial system. This concern about the soundness of the non-bank sector was supported by action in 2003 when joint inspections of the largest credit unions commenced, in conjunction with the Registrar of Cooperatives. In addition, during 2010 the Bank allocated resources to enable an enhancement of its database on non-banks. Moreover, the Bank started to collaborate closely with the FSC which assumed regulatory responsibility for these entities. In August 2013, the Bank and the FSC concluded an MOU which was intended to strengthen the monitoring of the financial system. In the immediate aftermath of the Colonial Life Insurance Company (CLICO) crisis in 2009, the Bank provided some support for the company in order to prevent panic. The Bank extended collateralised loans totalling $7.7 million to Clico Mortgage & Finance Corporation (CMFC), a subsidiary that was facing liquidity shortages. It also agreed to give CMFC access to a liquidity facility and to provide A Memorandum of Understanding between the Financial Services Commission (FSC) and the Central Bank of Barbados being signed by FSC Chairman Sir Frank Alleyne (left) and Governor Worrell.