2019-2020 Annual Report and Statement of Accounts

AREAS OF FOCUS

2. Enhancing the payments and settlement infrastructure for institutional participants like governments and other Non-bank Financial Institutions. This will include an assessment of their current payment infrastructure, with recommendations to be made regarding the manner in which greater efficiency can be obtained. 3. Strengthening the oversight and development functions by providing a quarterly assessment of the payment system in the ECCU and evaluations of the designated Financial Market Infrastructures (FMIs). A key function in conducting oversight responsibilities is identifying the key risk that exists in the payment system and monitoring to ensure the implementation of effective controls. To address this issue, the Bank, with assistance from regional and international partners, will commence the development and implementation of a comprehensive Risk Management Framework for the payment system. 4. Continue to ensure safety and efficiency for the transmission of financial transactions by adopting the use of SWIFT Global Payments Innovation (GPI)), which will provide tracking for all transactions executed via SWIFT. In addition, the Bank will execute the necessary requirements to be compliant with the SWIFT 2020 release. The SWIFT 2020 release will include a Payment Tracker System for handling Universal Payment Confirmations as well as further development of the SWIFT GPI system for payment handling. 5. Establish a plan to ensure its readiness for the implementation of ISO 20022 in 2025. ISO 20022 is an emerging global and open standard for payments messaging. It creates a common language and model for payments data across the globe; one that provides higher quality data than other standards. This includes higher quality payments for all, adaptable to new needs and new approaches. The standards will not be controlled by a single interest and can be used by anyone in the industry and implemented on any network. 6. Work on revisions to the payment system regulatory framework apace with a view to enhancing the regulatory framework for payment services in the ECCU, strengthening consumer protection, and engendering confidence in the use of electronic payments. The Bank will also:

1. Continue to work with the respective member governments to secure promulgation of outstanding legislation. 2. Continue work on the finalisation of the Insurance and Pensions Bill for passage by member countries. 3. Leverage its statutory mandate for financial stability to create a platform for coordination and cooperation among the respective financial supervisory authorities. 4. Work on draft Financial Stability Legislation. 5. Expand its datasets to capture data from other financial institutions such as credit unions and insurance companies.

Deepen Money and Capital Markets To support the further development of money and capital markets in the region, the Bank will collaborate with key regional capital market institutions to develop an ECCU Capital Market Master Plan (CMMP). The plan will incorporate a multi-year cohesive capital market development roadmap and implementation framework, inclusive of a Capital Market Literacy Master Plan. It is also envisaged that activities and missions aimed at increasing the investor base of the Eastern Caribbean Securities Market will be undertaken. Promote the Development of the Financial Sector to Increase Citizen Access to Credit and Other Financial Services During the 2020/2021 financial year, the Bank will endeavour to undertake activities to strengthen the financial system to improve access to credit. Efforts will include: 1. Continued work on the establishment of the ECCU Credit Bureau, Deposit Insurance, Eastern Caribbean Partial Credit Guarantee Corporation and Shared Services Arrangement for national banks. 2. The implementation of secured transactions and collateral registries in the ECCU.

3. Conceptualisation of a development-type financial institution to catalyse broader access to financing by the private sector. 4. Ongoing assessment of the financial system for identifying gaps and proposing recommendations and strategies.

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| EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2019-2020