2019-2020 Annual Report and Statement of Accounts

FINANCIAL SECTOR STABILITY

collection template has been reviewed and amended to capture more relevant information. This information will assist in identifying risks and providing enhanced analyses of payments trends and behavioural patterns in the region. The oversight of systemically important payment systems has commenced with the request for a self-assessment of a designated Financial Market Infrastructure (FMI). The FMI has completed the assessment, which is currently under review by the Bank. Support the amalgamation of indigenous banks The Bank enhanced its technical advisory support with regard to the various merger and acquisition transactions being undertaken in the ECCU. This included consultations with the CARICOM Competition Commission on the Bank’s approach to the assessment of mergers and acquisitions. Additionally, technical support was provided to the Social Security Systems in the ECCU for their proposed acquisition of a minority stake in Republic Bank EC Ltd. Shared Services Initiative – ECCU National Banks During thefinancial period, the ECCU indigenous banks decided to embark on a shared services initiative as a first step towards the consolidation of the ECCU indigenous banking sector. In support of the initiative, the ECCB coordinated the indigenous banks’ selection and contracting of a service provider to assist them in establishing shared risk functions. The ECCB will continue to provide assistance via coordination of the service provider’s execution of tasks. Deepen money and capital markets As part of ongoing initiatives for reforming the money and capital markets in the ECCU, the Bank coordinated and arranged a knowledge sharing and capacity building session on broker dealer operations, resolution and risk mitigation strategies associated with collateral and securities lending, securities settlement and automated clearing systems. The Bank, in collaboration with Mr Cecil St Jules, facilitated a session with representatives of the Eastern Caribbean Securities Exchange, the Eastern Caribbean Home Mortgage Bank and the Eastern Caribbean Securities Regulatory Commission. The participants benefited from the sharing of expertise and knowledge to help inform (1) the regulatory, supervisory and operational framework being established for the offer, sale and trading of repurchase agreements; (2) capital market development initiatives; and (3) ongoing Regional Government Securities Market (RGSM) initiatives to improve the functioning of the market for government securities. Promote the Development of the Financial Sector to Increase Citizen Access to Credit and Other Financial Services During the financial year, the Bank engaged in further discussions with the International Finance Corporation (IFC)/World Bank regarding collaboration for the adoption of secured transactions reforms across the sub-region. The project aims to promote the modernisation and

Given the major developments taking place in the payment system landscape, the Payment System data collection template has been reviewed and amended to capture more relevant information. This information will assist in identifying risks and providing enhanced analyses of payments trends and behavioural patterns in the region.

| EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2019-2020 9