WILLEMSTAD – The Central Bank of Curaçao and Sint Maarten (CBCS) has identified credit risk as the main domestic vulnerability facing the financial sector, particularly due to rapid lending growth connected to tourism and real estate development.
According to the CBCS 2026 Financial Stability Report, strong credit expansion in tourism-related and real estate sectors has increased exposure to credit-related risks while also showing early signs of weakening credit quality.
The warning comes as both Curaçao and Sint Maarten continue experiencing strong tourism recovery and construction activity following the post-pandemic economic rebound.
Although the central bank said overall financial conditions remained stable during 2025, authorities are increasingly monitoring the risks associated with concentrated lending in sectors heavily dependent on tourism and international economic conditions.
The report notes that the Aggregate Financial Stability Index (AFSI), the CBCS’s main financial stability indicator, improved during 2025 and remained comfortably above early warning levels used to detect systemic financial risks.
Still, stress testing conducted by the central bank showed that vulnerabilities become more visible under severe economic stress scenarios, especially in areas involving credit, liquidity, and market risks.
The findings highlight the delicate balance facing the islands’ financial sector: benefiting from economic growth while simultaneously becoming more exposed to shocks tied to tourism, real estate, and global market developments.