2019 Financial Stability Report

4.0 Policy Initiatives for Enhancing Financial Stability in the ECCU

continues to work on the development of an

Overview

AML/CFT framework for licenced financial

Policy Initiatives remain the same from

institutions (LFIs) under the Banking Act.

the last FSR and therefore a full expos é of

Additionally, the BSD continues to

them is not presented . In the ECCU,

implement

Information

Technology

several initiatives are expected to assist in

assessments as part of their RBS framework.

enhancing financial stability. These include;

(1) new supervisory arrangements including

As of 2018, the ECCB is in the process of

the proposed regulation of the Caribbean

establishing regulations for the Caribbean

Credit

Card

Corporation

(4Cs),

Credit Card Corporation (4Cs) and as such

(2) establishment of a regional deposit

the engagement is ongoing. Additionally,

insurance scheme, and (3) development of a

discussions are ongoing for the regulation of

macroprudential framework.

SICUs in the ECCU. To date, the ECCB

has worked towards the development of a

4.1 New Supervisory Arrangements

framework for identifying systemically

important financial institutions. It is

Within the ECCB, the Bank Supervision

anticipated that upon completion and

Department (BSD) works to mitigate the

adoption, the framework will be used for

risks to the financial system and supports

both commercial banks and credit unions.

monetary policy of a strong and stable

Eastern Caribbean Dollar. The Bank

4.2 The Establishment of the ECCU Credit Bureau

Supervision Department has instituted a

risk-based supervisory (RBS) framework.

The Harmonised Credit Reporting Bill was

The RBS is a comprehensive, formally

developed to provide for the proper

structured system that assesses risks within

administration and licensing of credit

the financial system, giving priority to the

bureaus. Additionally, the Bill provides for

resolution of those risks. Work on the

the compilation and maintenance of

implementation of Basel II/III remains

databases, evaluation, update and

ongoing. Simultaneously, the BSD

dissemination of the data to subscribers and

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