2019-2020 Annual Report and Statement of Accounts

CORPORATE GOVERNANCE

The ECCB continues to recognise the importance of good corporate governance and is committed to ensuring that this attribute is preserved in its operations.

The Bank’s Corporate Governance Framework is upheld by the following pillars: Firm Foundation for Management and Oversight 1. Proactive and sound risk management and internal control; 2. Integrity in financial reporting; 3. Code of Conduct that endorses ethical values; and 4. Reciprocal relationship with stakeholders.

The Corporate Governance Framework is guided by the following: 1. The ECCB Agreement Act, 1983 (as amended) and the Banking Act, 2015; 2. The Corporate Governance Principles for the Organisation of Eastern Caribbean States (OECS); 3. The Legal and Regulatory Framework of the ECCU member countries; and 4. Best Practices in the Local and International arena.

The framework seeks to promote accountability; ensure that appropriate control systems are developed and are operationalised to address associated risks; and to foster innovation through critical thinking and problem solving in pursuit of the Bank’s objectives.

During the financial year, the Internal Audit Deparment conducted an audit of the Bank’s Corporate Governance and Change Management. The Bank’s corporate governance practices were benchmarked against international best practices and it was noted that the Bank had implemented several best practices. The recommendations for improvement were embraced and are being implemented. Administration and Management Monetary Council The Monetary Council comprises the eight Ministers for Finance of the ECCB Participating Governments and is the highest decision-making organ of the Bank. Provision is made in the ECCB Agreement Act, Article 7 (1) for each Minister to designate an Alternate, who shall also be a minister of government, to serve on the Council in his/her absence. Chairmanship of the Monetary Council The tenure of the Chair of the Monetary Council is for a one-year duration and is rotated among member countries in alphabetical order. The current serving Chairman is Dr the Right Honourable Keith C. Mitchell, Council Member for Grenada, who assumed the Chairmanship on 27 July 2018. Prime Minister Mitchell continued his tenure as Chairman as a result of the cancellation of the July 2019 Handover of Chairmanship Ceremony due to pending elections in Montserrat. Prime Minister Mitchell will hand over the Chairmanship of the Monetary Council to the Council Member for Saint Christopher (St Kitts) and Nevis on 24 July 2020.

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| EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2019-2020