Financial Development and Inclusion in the Caribbean

25 Pages Posted: 5 Apr 2018

See all articles by Chuan Li

Chuan Li

International Monetary Fund (IMF)

Joyce Wong

International Monetary Fund (IMF)

Date Written: March 2018

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.

Keywords: Caribbean, Financial systems, Jamaica, Latin America, Western Hemisphere, Financial inclusion, Financial Development, General, Government Policy and Regulation, General, General, Equity, Justice, Inequality, and Other Normative Criteria and Measurement, Economic Growth of Open Economies

JEL Classification: G10, G18, G20, O16, O40, D63, F43, G21

Suggested Citation

Li, Chuan and Wong, Joyce, Financial Development and Inclusion in the Caribbean (March 2018). IMF Working Paper No. 18/53, Available at SSRN: https://ssrn.com/abstract=3157016

Chuan Li

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

Joyce Wong (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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