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

65 minister of finance was advised to activate the Act and guidelines were issued regarding minimum down-payment and maximum repayment periods for items sold under hire-purchase. This started a system of hire purchase regulation which remained in place throughout the Bank’s consolidation phase. Oversight of the domestic financial system Enhanced surveillance of, and increased transparency in, the financial sector became major objectives of the Bank’s work. Publication of buying and selling rates for foreign currencies commenced in 1976. During 1978, for the first time, the Bank Supervision Department conducted inspections of branches of commercial banks other than the main offices in Bridgetown. During this period there were also inspections of some commercial houses to ensure their compliance with the Bank’s regulations and procedures pertaining to credit. A draft paper entitled “A Regulatory Framework for Financial Institutions” was prepared in 1976; it dealt with strengthening the regulation of financial institutions and was the forerunner of the Financial Institutions Regulatory Act of 1992. The Bank, also in 1980, developed procedures for the administration of the new Offshore Banking Act. At the institutional level, the Bank was involved in much of the preliminary work relating to the takeover of the assets of First National City Bank (in 1984) and Chase Manhattan Bank (in 1986) by Caribbean Commercial Bank, the first regional commercial bank to operate in Barbados. The Bank’s role as the agent of Government The Bank's role as the Government’s banker and guardian of the country’s foreign reserves necessitated its involvement in some activities. For example, the governor was co-opted to sit on the newly-formed National Economic Council in 1977. He also became a member of the Import Chapter 3: Consolidation: 1976 to 1986