ECCB 2017-2018 Annual Report and Statement of Accounts

ECCB ANNUAL REPORT 2017/2018

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Caribbean Commercial Bank (Anguilla) Ltd in Anguilla, subsequent to their resolution on 27 November 2015 and 22 April 2016, respectively. Since the ECCB appointed the Eastern Caribbean Asset Management Corporation (ECAMC) as receiver of the ABI Bank Ltd in July 2017, steps have been taken towards liquidation of assets and the repayment of claims. Issue of Prudential Standards The Bank issued the Valuation Prudential Standards for Licensed Financial Institutions under the Banking Act (Valuation Standards) in December 2017, to provide guidance on several key principles for real estate valuation including the minimum content of a real estate valuation programme. The enforcement of the Valuation Standards effective 1 July 2018, will introduce a standardised approach for suitably qualified appraisers to conduct valuations. In response to emerging developments, the ECCB strengthened its regulatory framework to increase the resilience of the financial sector and to promote good governance. Work included the revision of existing prudential standards including Corporate Governance, Prudential Credit Guidelines and Liquidity Risk Management and drafting/finalisation of new ones such as Outsourcing, Fees and Charges, Basel II and Treatment of Impaired Assets.

Enhance Risk Based Supervisory and Management Framework

In fulfilling its mandate to maintain financial stability, through the regulation and supervision of financial institutions licensed under the Banking Act 2015, the Bank implemented various initiatives to assess the prevailingtrendsinthefinancialsystemandidentifyrisks that threatened financial stability. In this regard, the Bank executed the following activities during the year: The International Monetary Fund (IMF) provided ongoing technical assistance for implementation of the Risk Based Supervision (RBS) framework which focuses attention and supervisory resources on activities that pose the greatest material risk to an institution. In March 2018, the ECCB introduced the RBS framework to LFIs at a joint meeting of commercial banks and non-bank financial institutions licensed under the Banking Act. This framework is scheduled to be implemented fully by 2019. In the interim, the ECCB conducted 11 on-site examinations and one prudential visit under the existing supervisory framework. During the year, the ECCB continued to provide oversight of the receiverships of ABI Bank Ltd in Antigua and Barbuda and National Bank of Anguilla Ltd and Enhanced Supervision of Licensed Financial Institutions (LFIs):

Joint meeting of commercial banks and non-bank financial institutions licensed under the Banking Act - March 2018 where the ECCB introduced the Risk Based Supervisory Framework