2019-2020 Annual Report and Statement of Accounts

FINANCIAL SECTOR STABILITY

In fulfilling its mandate to maintain financial stability, the ECCB continued to play a critical role in the regulation and supervision of institutions licensed under the Banking Act 2015. The Bank implemented various initiatives to assess emerging trends in the financial system and to identify risks that threatened financial stability. Enhance Risk-Based Supervisory and Management Framework Enhanced Supervision of Licensed Financial Institutions (LFIs): Since the implementation of the Risk-based Supervision (RBS) Framework in March 2018, the Bank successfully completed its work plan related to the risk-based onsite examinations of LFIs. The ECCB continued to provide oversight of the Receiverships of ABI Bank Ltd in Antigua and Barbuda, and the National Bank of Anguilla Ltd (NBA) and Caribbean Commercial Bank (Anguilla) Ltd (CCB) in Anguilla, subsequent to their resolution on 27 November 2015 and 22 April 2016, respectively. The National Commercial Bank of Anguilla (NCBA) and the Receiver for NBA and CCB concluded transactions that are necessary for the transitioning of NCBA from a bridge bank to a full fledge commercial bank. The Bank commenced assessments of information technology (IT) and security risk, to ensure that the financial institutions in the ECCU have adequate IT governance, cyber-security platforms and controls to mitigate against IT risks. Six IT on-site examinations were conducted during the 2019/2020 financial year; two Bank Examiners continued training to anchor this new initiative. The Bank also continued to promote adherence to the Banking Act 2015. To enlighten financial institutions and the public on the requirements of Part XII of the Banking Act (Abandoned Property), Frequently Asked Questions and responses related to abandoned property balances and safe deposit boxes were published on its website. Regulations for the administration of abandoned property were also drafted and discussed with Member Governments and the banking community. Republic Financial Holding Limited (RFHL) Acquisition of the Bank of Nova Scotia (BNS) Branches in the ECCU The ECCB approved Republic Bank’s acquisition of BNS’ operations in six member countries (Anguilla, the Commonwealth of Dominica, Grenada, Saint Christopher (St Kitts) and Nevis, Saint Lucia and Saint Vincent and the Grenadines), following extensive research and collaboration with key stakeholders. The Bank continues to monitor the operations of Republic Bank across the currency union. International Financial Reporting Standard (IFRS) 9 Implementation The ECCB continued to monitor the implementation of measures by LFIs, to ensure compliance with IFRS 9 and continues to provide support to those that are experiencing implementation challenges.

Republic Financial Holding Limited Team Meets With ECCB

L-R: Governor Antoine; Managing Director, Republic Bank (EC) Limited, St Kitts and Nevis - Michelle Palmer-Keiser; Bank Examiner, ECCB - Damille James; Country Manager, Republic Bank (EC) Limited, St Kitts and Nevis Branch - Pamela Herbert; Director, Bank Supervision Department, ECCB - Christopher Louard

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