An update to the Bank of Barbados' financial stability report, published on August 13, said stress tests indicated the ability of the domestic banking system to withstand significant losses, but overall credit growth had been flat alongside an increase in non-performing loans.

The report, which covered the period from September 2011 to March 2012, showed domestic banks were well capitalised and had access to sufficient liquidity. "Only under severe conditions, where banks experience extreme runs