2019 Financial Stability Report

Table of Contents

Preface From The Governor .............................................................................. i

1.0 Overview of Financial Stability in the ECCU ................................................ 1

1.1 Key Risks and Vulnerabilities ................................................................ 3

1.2 Cyclical Risk ...................................................................................... 7

1.4 Interconnections ................................................................................. 8

2.1 Banking Sector ..................................................................................10

2.2 Credit Union Sector ............................................................................15

3.0 Financial Performance and Soundness of Non-Deposit-Taking Institutions:

Insurance Companies .............................................................................17

3.1 Overview .........................................................................................17

4.0 Policy Initiatives for Enhancing Financial Stability in the ECCU ......................20

4.1 New Supervisory Arrangements ............................................................20

4.2 The Establishment of the ECCU Credit Bureau ........................................20

4.3 The Establishment of the Eastern Caribbean Deposit Insurance Corporation ...21

4.4 Macroprudential Policy .......................................................................21

5.0 Outlook ..............................................................................................22