ECCB 2017-2018 Annual Report and Statement of Accounts

ECCB ANNUAL REPORT 2017/2018

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III Implementation Group within the Policy and Licensing Unit of the Bank Supervision Department to give focused attention to implementation by June 2020. The group will facilitate rollout of the implementation roadmap, including development of supporting standards and reporting templates, implementation of the quantitative impact studies and engaging in collaboration and interaction with licensees. Additionally, the group is expected to transfer, to other stakeholders on an ongoing basis, knowledge of the Basel Framework and experiences gained from the implementation process. The ECCB continued tomonitor its LFIs’ implementation of measures to ensure compliance with International Financial Reporting Standard (IFRS) 9, which is effective for annual periods beginning on or after 1 January 2018. IFRS 9 introduces new requirements for the classification and measurement of financial assets and for increased provisioning for impaired assets. Develop Macro Prudential Framework During the financial year, the ECCB continued to work towards the establishment of a macro- prudential framework for the ECCU, pursuant to Goal 2 of the Bank’s Strategic Plan 2017 - 2021. To this end, economists from the Technical Unit within the Research Department continued the development of an analytical framework for identifying, measuring and monitoring systemic risk in the ECCU. The framework includes a set of financial and economic indicators, intended to assist in tracking the evolution of financial stress. An institutional framework, comprising a Regional Financial Stability International Financial Reporting Standards (IFRS) 9 Implementation

Committee (RFSC) and a Macro Prudential Committee (MPC), was approved by the Board of Directors. The RFSC is expected to provide strategic guidance and authorisations, while the MPC is charged with providing technical support, in respect of financial stability and macro prudential policy in the ECCU. A Financial Stability Report (2016), which assesses risks to financial stability in the ECCU, was also prepared and published on the Bank’s website.

Deliver New Risk Management Infrastructure to Support the ECCU

Financial Sector ECCU Credit Bureau

The ECCB and International Finance Corporation (IFC) collaborated on the establishment of a legislative environment to support an advanced credit reporting system for the ECCU. In this regard, the Credit Reporting Bill and Regulations were passed in the Parliaments of Antigua and Barbuda, Grenada and StVincentandtheGrenadines. TheECCBandtheIFCalso collaborated on the public education and awareness programme which was completed in all the member countries following which the Request for Proposal for the services of a Credit Bureau operator was issued. Eastern Caribbean Appraisal Institute The activities of the ECCB during the period focused on designing an appropriate operational structure for the Eastern Caribbean Appraisal Institute (ECAI). The establishment of this regional professional organisation for ECCU valuers is expected to support the effective implementation of risk management frameworks in the ECCU financial sector. It is anticipated that the establishment and operationalisation of the institute will be completed in the next financial year.