ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

levels of transparency and accountability; and y y Continuous learning, business improvement and sharing with key stakeholders. The Vision is anchored on maintaining a strong EC dollar. However, cognisant of the international environment and the challenges in the currency union, the strategic priorities for the ECCB are: 1. Financial Stability; 2. Fiscal and Debt Sustainability; 3. Growth, Competitiveness and Employment; and 4. Organisational Effectiveness. In the area of financial stability, the Bank will seek to develop a strong and resilient financial system with well capitalised commercial banks and a macro- prudential policy framework which focuses on mitigating systemic risk in the financial system. The financial sector must be capable of providing adequate financial resources to the productive sectors. In this regard, the Bank would pursue the initiatives geared towards the further diversification and development of the financial system within the context of the Single Economic and Financial Space. In collaboration with the World Bank and with support from the Financial Sector Reform and Strengthening Initiative (FIRST), a strategy and implementation plan for a more diversified financial system in the currency union will be developed. A diagnostic of the financial and economic structure of the ECCU will be completed and will be accompanied by an action plan to inform the implementation of a financial architecture that will facilitate diversification, including capital market development and access to finance by Micro, Small and Medium Enterprises (MSMEs). This project is

in the system which would be followed by a strategy to strengthen the money and capital markets to provide financing to the private sector and, in particular, small and medium size enterprises. In recognition of these developments and to chart a way forward, I articulated a vision styled “New Vision for a New Era: 2016 – 2020 and Beyond” which was endorsed by the Monetary Council on 13 February 2016. In recognition of the importance of private sector investment to the growth and development of the currency union, the Bank initiated a project to undertake a diagnosis of the financial system with respect to financing for development. y y Delivering comprehensive oversight of the financial system that encourages the development of strong and resilient financial institutions including indigenous banks; y y Monitoring credible and effective fiscal rules; y y Providing thought leadership and influential policy advice to member countries to elevate growth, development and employment; y y Enhancing our effectiveness through higher The elements of the Vision are: y y Maintaining a strong EC dollar;

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ECCB A nnual R eport 2015/2016