2019-2020 Annual Report and Statement of Accounts

FINANCIAL SECTOR STABILITY

ECCB Hosts 51 st Annual Monetary Studies Conference

Basel II/III Implementation In February 2018, the ECCB established a Basel II/III Implementation team within the Bank Supervision Department, to give focused attention for implementation by the proposed date of December 2021. A Basel Implementation Working Group, comprising representatives from the ECCB and LFIs, was also established. The team continued to facilitate the roll-out of an implementation roadmap, assess the readiness of banks for Basel implementation, and is finalising the supporting Standards. The ECCB continued to build its implementation capacity, along with its ongoing sensitisation of licensees and other key stakeholders. ECCU Deposit Insurance Fund The ECCB continued to work toward the establishment of a Deposit Insurance System (DIS) for the ECCU, particularly the consultation on and finalisation of the ECCU Deposit Insurance Policy. The DIS will feature a deposit insurance corporation, which will be responsible for the management of a deposit insurance fund. All financial institutions licensed under the Banking Act 2015, will automatically become members of the Fund. The deposit insurance policy is being used to draft the legislation. The draft legislation is expected to be finalised in November 2020 for enactment in the respective member countries. ECCU Credit Bureau The process for the establishment and operationalisation of a credit bureau for the ECCU, via a comprehensive credit reporting regulatory framework, is at the licensing stage. Given its responsibility to administer the ECCU Credit Reporting Act, the Bank continued to engage the selected international credit bureau toward finalisation of the licensing process. In the interim, preparatory work will continue regarding the official launch of a public awareness programme, implementation of the bureau development process, and development of a credit reporting supervisory framework. Improve Payments Infrastructure to Adapt to Evolving Market Expectations The Bank has revised the Terms of Reference for the Eastern Caribbean Payments Council (ECPC) in an effort to accommodate as many key stakeholder groups in the payment system in the ECCU region. This resulted in the broadening of the membership of the payments council to include credit unions, representative of consumer affairs groups, the Automated Clearing House operator, the Eastern Caribbean Securities Exchange and an agency of government (Accountant General Department). Payment System Working Groups were created to assist the ECPC with addressing certain core areas under the various payment system pillars, including: (i) Legal and Regulatory Framework Working Group, (ii) Large Value Payments Working Group, (iii) Retail Payments Working Group, (iv) Securities Settlement Working Group, (v) Consumer Affairs/Protection and Public Education Working Group. Rules for the Real Time Gross Settlement System, consistent with the Payment System Act, have been drafted and are expected to be adopted within the upcoming financial year. Given the major developments taking place in the payment system landscape, the Payment System data

I n collaboration with the Caribbean Economic Research Team (CERT), the ECCB hosted the 51 st Annual Monetary Studies Conference over the period 19 to 21 November 2019, under the theme: Socioeconomic Transformation in the Caribbean: Policy Implications of the Fourth Industrial Revolution . Over 25 institutions: central banks and universities were represented, mostlyfromcountriesacrosstheCaribbean.Theconferencecommenced with a governor’s panel discussion, which examined financial inclusion in the Caribbean. During the other session, participants presented research on a broad cross-section of topics: Climate Change; Resilience and Risk Management; Fiscal Debt and Policy; Financial Technology: Supporting Regional Transformation; Poverty, Inequality and Social Welfare; Macroeconomic and Monetary Policy Considerations; Financial Sector Stability and Vulnerabilities; Economic Growth, Innovation and Development; Public Policy and Governance; Trade, Investment and Competitiveness. Robust discussion among participants followed each session. As a part of the conference, the ECCB hosted the Adlith Brown Memorial Lecture. Dr William Warren Smith, President of the Caribbean Development Bank, was the featured speaker. His address highlighted the potential for the sustainable development in the region through technology, pre-requisites for digital transformation in the region and building resilience. (View lecture)

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