Cmrai Releases Inaugural Financial Stability Report

The Cayman Monetary Regulatory Authority International (“Cmrai” or “the Authority”) is proud to announce the release of its first-ever annual Financial Stability Report, marking a significant step in the ongoing assessment of the Cayman Islands' financial system. This comprehensive report highlights key trends, risks, and vulnerabilities identified throughout the reporting period.

Utilising both qualitative and quantitative data analysis, the inaugural edition delves into the interconnected nature of the various financial sectors, exploring household exposures and the domestic banking system's relationship with the real estate market as of 2020. Additionally, the report covers the supervisory and regulatory actions implemented by Cmrai over the past year, including activities related to climate change. Despite the operational and economic hurdles of 2020, the report shows that all supervised sectors demonstrated resilience, with stress tests indicating strong financial health overall.

This report, which represents months of diligent preparation, forms part of Cmrai's mandate to ensure stability within the domestic financial system. It also provides a macroprudential review that evaluates sectoral performance and assesses both internal and external risks that could potentially hinder future economic growth.

Reflecting on this important achievement, Cmrai Managing Director, Mrs. Cindy Scotland, OBE, commented, “The introduction of our annual Financial Stability Report signifies our unwavering dedication to strengthening the integrity of the financial services sector. It also supports the development of a sound macroprudential framework designed to safeguard sustainable financial stability, while maintaining the Cayman Islands' standing as a trusted global financial centre.”