ECCB 2016/2017 Annual Report

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ECCB ANNUAL REPORT 2016/2017

The resolution plan included: (i) the transfer of good assets and matching deposit liabilities up to a threshold of approximately $2.8 million from the CCB and NBA to the National Commercial Bank of Anguilla (NCBA), which commenced operations on 25 April 2016; and (ii) the transfer of deposit liabilities over the $2.8 million threshold from CCB and NBA to a Depositor Protection Trust. FINANCIAL SECTOR STABILITY INITIATIVES Article 4(3) of the Eastern Caribbean Central Bank Agreement 1983, identifies one of the four purposes of the Bank as: To promote credit and exchange conditions and a sound financial structure conducive to the balanced growth and development of the economies of the territories of the participating Governments . In this regard, the Bank made notable progress in the establishment and operationalisation of the following initiatives: Eastern Caribbean Asset Management Corporation The Board of Directors of the Eastern Caribbean Asset Management Corporation (ECAMC) had its first official meeting in November 2016. The ECAMC management team is preparing for the full operation of the entity through the formulation of requisite strategies and policies, and training of the Board of Directors and management. Once fully operational, the ECCB will appoint the ECAMC as receiver for the three existing receiverships. Deposit Insurance In collaboration with The World Bank, the ECCB coordinated a preliminary analysis of the pre-requisites for the establishment of a robust Deposit Insurance Fund for the ECCU. The establishment of an effective deposit insurance system in the ECCU is expected to contribute to financial stability by providing protection

to the most vulnerable depositors.

ECCU Credit Bureau As part of the initiative to improve credit reporting in the ECCU, the Bank intensified its efforts towards the establishment of a Credit Bureau in the ECCU. At its meeting of 2 March 2017, the Monetary Council approved the draft legislative package for the establishment of the Credit Bureau, which was submitted for passage through the Parliaments of the respective member territories. The establishment of anECCUCredit Bureau is expected to address the issue of asymmetric information; accelerate the speed with which credit applications are processed as a result of the centralisation of information; provide credit-granting institutions with a bettermeans of assessing credit risks, whichwould lead to an improvement in the quality of lending decisions; and facilitate the extension of credit to underserved segments of the population, in particular micro, small and medium businesses and low-income consumers. Eastern Caribbean Appraisal Institute The Bank, with technical assistance from the IMF, completed the draft Agreement and Bill establishing the Eastern Caribbean Appraisal Institute (ECAI) and Rules governing the operations of the ECAI. The initiative to establish the ECAI is expected to achieve the following outcomes: •  • A governance structure that supports and sustains the further development of the appraisal industry in the ECCU; •  • Formalised training and certification frameworks; •  • Improved oversight that develops expertise and promotes integrity in the industry; and •  • Consistent application of internationally accepted appraisal standards.