Barbados: Technical Assistance Report-Climate Risk Analysis

Barbados: Technical Assistance Report-Climate Risk Analysis
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Volume/Issue: Volume 2026 Issue 007
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Topics covered in this book

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Finance , Environmental Economics , Climate risk analysis , financial stability , banking sector , climate related physical risk , climate scenario analysis , natural disasters , hazard projections , damage functions , , Climate change , Stress testing , Macroprudential stress testing , Financial sector stability

Summary

The Technical Assistance (TA) mission, conducted in Bridgeton, Barbados, from July 8 to 12, 2024, supported the Central Bank of Barbados (CBB) in the integration of climate risk analysis (CRA) into its banking stress testing framework, building on prior CARTAC technical assistance. It focused on identifying and using appropriate data sources, developing institutional expertise, and refining the climate risk component to assess financial sector resilience to climate-related physical risks. Continued collaboration with climate experts, increased use of granular and region specific data, and further development of economic linkages were highlighted as key priorities for enhancing the CRA framework.