ECCB 2016/2017 Annual Report

ECCB ANNUAL REPORT 2016/2017

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•  • Review the existing benchmark used for the management of the foreign reserves in keeping with the Strategic Asset Allocation (SAA) process; •  • Revise existing Investment Guidelines to be used in the management of the foreign reserves; and •  • Develop an external portfolio manager framework with the objective of enhancing the selection and supervision of the ECCB’s portfolio managers. Currency Management The Bank will continue to focus on maintaining the integrity of the EC dollar. The following are the planned initiatives to support this work: •  • Train and certify law enforcement officers to differentiate genuine and counterfeit EC banknotes; •  • Training in ‘Know Your Money’ for cash handlers in the ECCB member countries to improve business relations; •  • Continue to review the security features of the EC banknotes so as to preserve the integrity of the currency; •  • Examine the feasibility of isuuing polymer currency notes; and •  • Incorporate leadership training and development for staff to align with the Bank’s strategic priorities.

international standards and best practices; •  • Engaging in policy development towards ensuring systemic stability and the efficacy of the enhanced regulatory and supervisory framework; •  • Ensuring that financial stability is maintained through the revision and development of key standards and procedures which would serve as a tool to guide licenced financial institutions; •  • Expediting efforts towards the amalgamation of the banking sector, as per Point 7 of the ECCU Eight Point Stabilisation and Growth Programme; •  • Executing the comprehensive resolution strategy and technical assistance programme for strengthening the resilience of the ECCU financial system; •  • Implementating an effective resolution mechanism comprising financial safety nets, including explicit deposit insurance and the full operationalisation of the ECAMC; and •  • Enhancing the monitoring of threats to financial systemstability at themacro andmicro level and implementation of risk-mitigating measures. •  • Completing and circulating to all banks in the ECCU, the revised prudential returns, manual of instructions, and the financial institutions registry; •  • Organisating of a workshop with commercial banks to discuss additional changes to prudential returns in mid-2017; and •  • Liaising with banks and their software providers to explore and adopt ways which will minimise manual data entry of revised returns.

Commercial Banks’ Prudential Returns The following are scheduled:

FINANCIAL SECTOR STABILITY Bank Supervision The following will be pursued:

•  • Facilitating the modernisation of the financial system through an enhanced legislative and supervisory framework in keeping with