ECCB 2016/2017 Annual Report

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ECCB ANNUAL REPORT 2016/2017

ECCB Joins Reserve Advisory and Management Programme (RAMP)

ECCB team meets with officers from RAMP to discuss the Bank’s membership in that reserves management body

Returning the Bank to profitability is a key goal under the Bank’s strategic priority of Enhancing Organisational Effectiveness. Achieving this goal necessitates a review of the Bank’s risk tolerance as it relates to management of the Bank’s foreign reserve portfolio since over 90.0 per cent of the Bank’s income is derived from this activity. The process by which risk tolerance is analysed and implemented in portfolio benchmarks is called Strategic Asset Allocation (SAA). It is critical that this process be executed in accordance with the ECCB’s mandate to preserve capital, within the context of best practices. The World Bank Treasury provides advisory services and training to official sector investment managers including central banks, sovereign wealth funds, public pension funds and international organisations through the Reserves Advisory and Management Programme (RAMP).

The technical assistance provided by The World Bank under RAMP is comprehensive and all areas of the reserve management function will benefit. Beyond the technical expertise required to review the benchmark, participation in RAMP will strengthen the following areas of the reserve management function:

  Governance   Portfolio Management   Risk/Performance Reporting   Accounting   Audit and Operational Risk   Evaluation of external asset managers   Information Technology

As a member of RAMP the Bank will also benefit from on-going support via communication with The World Bank Treasury team in different areas of reserve management.