Financial Stability Report
The Financial Stability Report (FSR) is produced annually, for the previous calendar year. It summarises macroeconomic developments and local indicators of the health of the Trinidad and Tobago financial system. The FSR also provides insights into financial sector vulnerabilities and risks on the domestic, regional and international fronts.
The Visual Summary presents highlights, inclusive of a visual representation of the key points of the Financial Stability Report for 2023.
In 2022, Trinidad and Tobago’s financial system navigated a challenging global macroeconomic environment marked by geopolitical tensions, high inflation, and monetary tightening in advanced economies. Despite these difficulties, the domestic financial system demonstrated resilience, evidenced by generally stable financial soundness indicators.
Global financial stability concerns eased as the risks related to the COVID-19 pandemic receded over 2021. The gradual rollback of pandemic-related restrictions on account of widespread vaccinations supported recovery worldwide.
Over the period, the Central Bank advanced strategic initiatives to support financial stability. Work progressed on legislative reform, regulatory amendments to improve compliance with international standards, and building the Central Bank’s supervisory and analytical capacity.
The dynamic and multifaceted response to the novel coronavirus (COVID-19) pandemic attenuated risks to global financial stability in 2020. Since the declaration of the pandemic in early 2020, countries’ authorities have provided fiscal, monetary and financial policy support which have been instrumental in alleviating macro-financial disturbances, boosting investor sentiment and maintaining credit creation.
The active and comprehensive response to the novel coronavirus (COVID-19) pandemic has helped soften risks to global financial stability in 2020. Nonetheless, the emergence of new coronavirus strains and the uncertain path and timing to majority vaccination for many countries shadows the outlook.