Modernizing Barbados’ legislative and regulatory framework for non-bank financial services

Counterpart / Lead agency

Financial Services Commission

Objective

The project will reform and modernize Barbados’ legal and regulatory framework for non-bank financial services, particularly pensions, insurance, credit unions and microfinance, while strengthening the institutional capacity of the Financial Services Commission (FSC) to implement and monitor effective, risk-based supervision. It is intended to support a more inclusive, transparent and resilient financial system, improve access to appropriate financial services, and create conditions for private-sector development and investment aligned with national climate-resilience priorities.

Expected results

The technical cooperation is expected to improve the coherence and modernization of non-bank financial regulation, strengthen the FSC’s supervisory capacity, and create better conditions for investment in climate-resilient and sustainable economic activity. The following outputs are planned.

1. Legislative review and drafting. A gender-sensitive review is expected to identify legislative gaps and recommend reforms across insurance, pensions, credit unions and microfinance. Draft laws, supervisory guidance, sample regulations and practical toolkits should support a coherent, modern framework.
2. Capacity and workflows. The project is expected to streamline FSC supervisory workflows using environmental, social and governance principles, with climate-smart and gender-responsive processes. Training, standard operating procedures and a stakeholder communications plan will help regulators and institutions apply the reforms.
3. Monitoring and data capacity. The FSC is expected to receive a climate-smart, gender-responsive monitoring and evaluation framework, indicators and implementation plan, alongside staff training and data tools. These resources should strengthen collection, analysis and reporting on reform implementation and impact.

Beneficiaries

At least 30 FSC staff are expected to benefit directly through stronger regulatory, supervisory and data capabilities. Indirect beneficiaries include non-bank financial institutions, micro, small and medium-sized enterprises (MSMEs), women-owned businesses and Barbados’ wider private sector, through better conditions for inclusive finance and climate-resilient investment.