ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

C orporate G overnance F ramework Good Corporate Governance is pivotal to the success of any institution, and the Eastern Caribbean Central Bank (ECCB) recognises this quality as the critical factor in achieving the Bank’s mandate and maintaining regional and international credibility. Monetary Council The Monetary Council comprises the eight Ministers for Finance of the ECCB Participating Governments. Provision is made in the ECCB Agreement for each minister to designate an Alternate to serve on the Council in his absence.

The Bank’s corporate governance framework is built on the following pillars: 1. Solid foundation for management and oversight; 2. Sound risk management and internal control; 3. Integrity in financial reporting; 4. Ethical conduct; and 5. Reciprocal relationship with stakeholders. The corporate governance framework is guided by the following: •  • The ECCB Agreement, 1983; •  • The corporate governance principles for the Organisation of Eastern Caribbean States (OECS); •  • The legal and regulatory framework of the ECCU member countries; and •  • Changes in local and international practices. The framework seeks to encourage innovation through critical thinking and development through problem solving, to meet the Bank’s objectives and to provide accountability and control systems commensurate with the associated risks. M anagement and O versight In accordance with the ECCB Agreement 1983, the Monetary Council and the Board of Directors are the highest decision-making bodies of the Bank.

The Chairmanship of the Council is rotated annually among member countries in alphabetical order. The current Chairman, the Honourable Victor F Banks, Council Member for Anguilla, assumed the chairmanship on 24 July 2015 following the Handing Over Ceremony to Mark the Change in the Chairmanship of the Monetary Council. Chief Minister Banks will transfer the chairmanship of the Monetary Council to the Honourable Gaston Browne, Council Member for Antigua and Barbuda in July 2016. Article 7 (2) of the ECCB Agreement states, “The Council shall meet not less than twice each [calendar] year to receive from the Governor the Bank’s report on monetary and credit conditions and to provide directives and guidelines on matters of monetary and credit policy to the Bank and for such other purposes as are prescribed under this Agreement.” During the financial year, the Council met for three regular meetings on 24 July 2015, 6 November 2015 and 12 February 2016. Board of Directors The Board of Directors is responsible for the policy and general administration of the Bank. According to the ECCB Agreement Act, “The Board shall

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ECCB A nnual R eport 2015/2016