IMF: Antigua and Barbuda’s Financial Sector Stable, But Credit Union Reforms Needed

Antigua and Barbuda’s financial sector remains broadly stable, with credit growth recovering and non-performing loans approaching prudential levels, according to the International Monetary Fund (IMF).

However, the IMF has emphasized the need for reforms in the credit union sector to strengthen oversight and ensure long-term financial resilience.

In its latest Article IV consultation, the IMF noted that while banks have maintained stability, credit unions require enhanced regulatory supervision.

The report highlighted that credit unions play a growing role in the financial system, but existing oversight mechanisms need modernization to align with regional standards.

The IMF has recommended a more risk-based supervisory framework for credit unions, which would include improved monitoring of asset quality and stricter enforcement of credit forbearance measures.

These reforms are seen as necessary to ensure that credit unions operate on a level playing field with banks while maintaining financial stability.

Additionally, the report pointed to ongoing efforts led by the Eastern Caribbean Central Bank (ECCB) to establish regional common regulatory standards for credit unions.

The IMF encouraged Antigua and Barbuda to support these initiatives, which aim to reduce financial sector vulnerabilities and enhance consumer protection.

Despite regulatory concerns, the IMF acknowledged the financial sector’s role in promoting economic growth and financial inclusion. The launch of a regional credit bureau is expected to improve access to credit while maintaining lending standards.

Other ECCB-led initiatives, such as climate risk assessments and a regional partial credit guarantee scheme, are also expected to strengthen financial intermediation.

The IMF report further emphasized the importance of continued regional coordination, noting that Antigua and Barbuda’s participation in cross-border financial stability initiatives will be key to maintaining economic resilience.

The IMF has urged authorities to prioritize credit union reforms while reinforcing collaboration with regional financial regulators.

Strengthening oversight mechanisms will not only support the long-term sustainability of the sector but also bolster public confidence in non-bank financial institutions.

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