International Business and Financial Services Centres in the Caribbean

The international business and financial services (IBFS) industry in the Caribbean, though miniscule as a proportion of the global financial markets, is the principal avenue for diversifying foreign exchange earnings for many Caribbean countries. In the smaller countries it is a major contributor to Gross Domestic Product (GDP), government revenues and employment. In light of the increased debate over global financial stability and the role of IBFS centres, this paper contributes to the literature by providing a timely analysis of the Caribbean's IBFS centres' relative position in the international arena, both in terms of financial and regulatory issues. The study finds that Caribbean IBFS centres, while very important relative to other industries within these jurisdictions, are quite small in the global context. The findings also suggest that the region's regulatory standards are on par with international recommendations, as the Caribbean remains committed to a fair approach to ensuring global financial stability