The bank’s financial stabilty report 2017 was released yesterday.
Central bank Governor Dr. Alvin Hilaire said this position is due to the increase in gas production.
However, in the summary of the 79 page document, the bank says ongoing monetary accommodation in advanced economies, regulatory rollbacks and financial technology innovations contribute heavily to global financial stability risks.
The bank says deep financial inter-connections between banks keep financial stability concerns elevated in the Caribbean.
According to the bank domestically a revival in the Energy Sector has reduced financial stability risks from the macro-economic channel.
The report says the 2017 vulnerabilities and risk assessment has identified high household debt, public sector debt-servicing and the low domestic Interest rate environment as key sources of potential financial imbalances.
It says despite these vulnerabilities and risks, the Financial Sector appears healthy.
According to the report the banking system is highly capitalised, profitable and asset quality is favourable.
It also says the Insurance and Pensions Industries continue to exhibit strong financial fundamentals.