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Financial Development and Inclusion in the Caribbean

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  • Chuan Li
  • Joyce Wong

Abstract

Many Caribbean financial systems are relatively well developed for their size but benefits are concentrated in a small part of the population. In several large countries, the financial development levels are below what is warranted by that country’s own macroeconomic fundamentals. SMEs, in particular, remain severely credit constrained, and data to inform better analysis remains scarce. Using available data, this paper takes stock of the current state of financial development and inclusion in the Caribbean region and, based on a quantitative general equilibrium model, examines potential trade-offs between growth, inequality, and financial stability—all critical considerations when policies are designed. A case study for Jamaica is examined in detail.

Suggested Citation

  • Chuan Li & Joyce Wong, 2018. "Financial Development and Inclusion in the Caribbean," IMF Working Papers 2018/053, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2018/053
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    3. Julia Bersch & Jean François Clevy & Naseem Muhammad & Mrs. Esther Perez Ruiz & Mr. Yorbol Yakhshilikov, 2021. "Fintech Potential for Remittance Transfers: A Central America Perspective," IMF Working Papers 2021/175, International Monetary Fund.

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