ECCB 2017-2018 Annual Report and Statement of Accounts

ECCB ANNUAL REPORT 2017/2018

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Ensuring the maintenance of a diversified, sound and resilient financial system - The Bank has been successful over the years in maintaining a stable financial system. Notwithstanding periods of shocks which impacted negatively, the solvency of a few financial institutions in the region, the financial system has remained sound and resilient. The Bank recognises that there is still room for improvement in the delivery of services to its stakeholders. Through diagnostic studies, the Bank identified key structural impediments to be addressed in order to adapt the financial system to post global financial crisis environment, to ensure more effective and efficient provision of financial services. In this regard, work programmes targeted the implementation of critical reform initiatives, both internally and currency union-wide, aimed at establishing a single financial space as required by the Revised Treaty of Basseterre. Major activities included: •  • Enhancing supervision of Licensed Financial Institutions (LFIs) through the implementation of the Risk Based Supervision (RBS) framework and a framework for operationalisation of macro prudential supervision; •  • Establishing the framework to implement Anti Money Laundering/Counter Financing of Terrorism (AML/CFT) standards and conducting AML/CFT examinations and implementation of the International Financial Reporting Standards (IFRS) 9; and •  • Improving access to credit for business and consumers by addressing information asymmetry and inadequate collateral

Enhancing organisational effectiveness of the Bank - Improving organisational effectiveness is another strategic goal of the Bank. This is necessary, not only to facilitate delivery of quality services to our stakeholders, but also to ensure that the Bank return to profitability and continue on that path over the medium term. Over the period under review, emphasis was placed on improving financial management functions including those related to the payments systems and currency management. The Bank recognises that human resources are one of the most valuable assets to the organisation. The Bank therefore formulated an action plan for the development of a modern Human Resource Strategy, with particular focus on hiring and staffing, training and development, policy enhancement and compliance, and compensation and benefits management. In addition, a number of initiatives were aimed at improving the accountability and transparency of the Bank’s operations. The recently established Office of Risk Management worked on the development and implementation of a comprehensive Enterprise Risk Management (ERM) Framework for the effective management of various risk elements inherent to the Bank’s operations. The Bank formulated an action plan for the development of a modern human resource strategy, with particular focus on hiring and staffing, training and development, policy enhancement and compliance, and compensation and benefits management operational and

problems, by supporting the establishment of institutions such as the Credit Bureau and Eastern Caribbean Partial Credit Guarantee Corporation, and developing a secure transactions legislative framework.