ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

The Bank also pursued development of the financial sector in order to facilitate improvements in the financing of the private sector, in the context of a Single Economic and Financial Space.

currency union. Those included: • Enactment of an amended ECCB Agreement Act 1983 in all member states with improved powers and tools for intervening in licensed institutions; • Enactment of a new Banking Act and new legislation for the operationalisation of an Eastern Caribbean Asset Management Corporation (ECAMC) for the management of non-performing assets in each member territory; • Resolution of the ABI Bank Ltd which was under conservatorship; • Development of a strategy for addressing the threats posed to access of correspondent banking services by ECCU banks, as a result of de-risking initiatives by major international banks; and • Facilitating the finalisation of plans to ensure that member states are in compliance with regulatory requirements for the Foreign Account Tax Compliance Act (FATCA) by the extended deadline date of September 2016. The Bank also pursued development of the financial sector in order to facilitate improvements in the financing of the private sector, in the context of a Single Economic and Financial Space. The World Bank’s FIRST project and The Savings Bank Foundation for International Cooperation (SBFIC) initiative are expected to provide a comprehensive diagnosis of the financial system, with respect to access, depth and efficiency.

Fiscal and debt sustainability initiatives were focused on providing technical support and policy advice to member states in the implementation of programmes aimed at achieving the 60.0 per cent Debt to GDP target by 2030. To this end, the Bank, in collaboration with the Caribbean Technical Assistance Centre (CARTAC) held an ECCU Fiscal Framework Boot Camp, which developed scenario-based strategies for countries to achieve the 60.0 per cent Debt to GDP ratio by 2030. Member states were also given support, through the Canadian-funded Debt Management Advisory Service (DMAS) Unit at the ECCB, in the development of Medium Term Debt Strategies. The Bank acknowledges that high and sustained private sector driven growth is needed to significantly improve key macroeconomic indicators such as the unemployment rate, the fiscal and debt balances and overall standard of living of ECCU citizens. To this end, the Bank has been instrumental in the establishment of the OECS Business Council and in undertaking research to address structural and institutional impediments affecting growth in member states. Improving corporate relations, especially strengthening relationships with key stakeholders and citizens of the region, was also a major work programme activity. That was achieved through a set of targeted community outreach programmes, such as the OECS Essay Competition, Best Corporate Citizen Award Among ECCU Commercial Banks and sponsorship of the OECS Under-23 Netball Tournament.

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ECCB A nnual R eport 2015/2016