But financial stability is under constant bombardment – reflected in the increasing complexity of the Basel II rules; the pressure to widen the reach of financial regulation; the increasing recognition that financial stability problems are coming not just from institutions, but from markets and their evolution; and the difficulty of staying ahead of the evolution of ever-more-complex financial instruments and products (driven by competition and sometimes by the objective of getting around prudential regulations).
I say additional, because the Central Bank of Barbados supervises the local subsidiaries according to the standards of the Basel Committee of Banking Supervision. Over the years The Central Bank of Barbados has had very good relationships with commercial banks.