ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

B anking S ervices In fulfilling its mandate to maintain financial stability, the Bank increased its focus on its role as banker to member governments and commercial banks in accordance with Parts VIII and IX of the ECCB Agreement Act (1983). Towards this end, the Bank: •  • Continued to enhance its role as fiscal agent to member governments and provided advice and support on issues related to cash flow management; •  • Facilitated the maintenance of financial stability by providing the necessary liquidity support to the financial system; and •  • Continued its efforts to reduce settlement risk and improve the quality of service provided through its management of the Regional Government Securities Market (RGSM) operations. P ayments S ystem The Bank moved forward with its efforts to modernise the payment system to facilitate the realisation of the single financial space by collaborating with the commercial banks and the Eastern Caribbean Automated Clearing House Services Incorporated (ECACHSI). The first phase of the implementation of the Eastern Caribbean Automated Clearing House (ECACH) was completed successfully in the ECCB member countries. The ECACH will offer customers the benefit of having their cheques settled within a shorter timeframe and cheques drawn on a commercial bank in one participating country but processed at a commercial bank in another participating country will

be cleared in the same timeframe as cheques drawn and processed at commercial banks in the same country.

The Bank also continued to ensure that the communication, settlement and back office functions of the Banking and Monetary Operations Department were executed with precision in order to minimise the inherent risks. The first phase of the implementation of the Eastern Caribbean Automated Clearing House (ECACH) was completed successfully in the ECCB member countries ] [ The Bank made significant strides in pursuing its Legislative Reform Programme aimed at strengthening the resilience of the ECCU financial sector. Following consultations with the Attorneys General and Financial Secretaries of the participating governments, the Monetary Council approved the following pieces of legislation for submission to the respective governments for passage: 1. Amendment to the Eastern Caribbean Central Bank Agreement - Consistent with the basic principles on dealing with banks facing challenges, the framework on a ‘going concern’ resolution vis-à-vis a weak financial institution (emergency powers), Part IIA of the Agreement, has been augmented by including, by reference, L egal S ervices Legislative Agenda

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ECCB ANNUAL REPORT 2014/2015