While specific sector such as financial services and tourism tend to dominate economic activity of many Caribbean countries, some, including the Cayman Islands, have achieved diversification within financial services, Cindy Scotland, managing director of the Cayman Islands Monetary Authority (CIMA), told delegates at a conference recently.
Scotland gave an update on the vulnerabilities affecting the financial systems of the Cayman Islands and the rest of the Caribbean region at a conference in Panama City, Panama. She attended the Seventh Meeting of the Regional Consultative Group for the Americas of the Financial Stability Board (FSB).
The FSB promotes international financial stability by coordinating national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies. It is chaired by Governor of the Bank of England, Mark Carney.
The Cayman Islands is a member of the FSB’s Regional Consultative Group for the Americas, and is represented by Scotland and chief officer for the Ministry of Financial Services, Dr Dax Basdeo.
At the meeting in Panama, members were updated on the FSB’s global financial regulatory reform agenda including: the progress on building resilient financial institutions; ending “Too-Big-To-Fail”; and transforming shadow banking into resilient market-based finance; and making derivatives markets safer.
Members discussed vulnerabilities in the global financial system and regional financial stability issues, including the potential impact on the region of uncertainties in global growth prospects and changes to unconventional monetary policies in advanced economies.
Scotland was the lead discussant on the topic of Regional Vulnerabilities. In her presentation, she stated that: “Many smaller jurisdictions with International Financial Centres do not have ample economic diversification. Financial services and tourism tend to dominate economic activity. However, within the broader financial services activity, some jurisdictions have achieved a level of diversification in provision of multiple types of financial services.”
Cayman, Cindy Scotland, CIMA, FSB, Mark Carney