ECCB 2017-2018 Annual Report and Statement of Accounts

ECCB ANNUAL REPORT 2017/2018

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•  • Issue appropriate prudential standards and intervention strategies to licensees, aimed at minimising or eliminating regulatory risks; •  • Draft the final notice of revocation of licences to carry on banking business for six LFIs, pursuant to Section 14 (6) of the Act; •  • Explore income generating activities of licensees towards development of a policy to guide the ECCB’s approval of activities not listed as permissible activities in the Act; •  • Finalise and issue to all licensees the revised prudential returns and manual of instructions for completing same; and •  • Continue to develop a risk based AML/CFT supervisory programme including execution of a gap assessment supervision manual, market sensitisation and training; risk based examination schedule and offsite risk assessment. The Bank will also: •  • Provide technical support to Social Security Boards in addressing the investment challenges facing the ECCU Social Security Systems; •  • Organise video conferences and workshops with commercial banks and other ECCB licensed non-bank financial institutions (NBFIs) in the ECCB member countries to discuss the contents of the revised prudential returns and the changes required for upload of data through a secure web-based server powered by SAS. Discussions will be held with these institutions on the next steps and an implementation date will be set following those discussions; •  • Update the monetary and financial statistics to be consistent with the international definitions recommended by the IMF; and •  • Complete Phase II of the Statistical Enterprise

MONETARY STABILITY

Maintain a Strong and Stable EC Dollar Maintain Sufficient Foreign Reserves to Support the EC Dollar Review and Adopt Revised Reserve Management Framework The Bank will build upon the work completed in the previous financial year by further enhancing the foreign reserve management framework. The following deliverables are anticipated to be completed in the financial year 2018/2019: •  • Develop Investment Guidelines to be used in the management of the foreign reserves; and •  • Develop a foreign reserve money manager framework with the objective of enhancing the selection and supervision of the foreign reserve managers. Ensure Parallel Implementation of Initiatives Across Core Activities of the Strategic Plan to Maintain a Strong and Stable EC dollar The Bank will continue work on aligning its work programme with the Strategic Plan. Close attention will be paid to the monitoring and reporting on the implementation of the Plan. Ensure a Strong, Diversified and Resilient Financial Sector Ensure Risk Based Supervisory and Management Framework The Bank will execute the following during the 2018/2019 financial year: FINANCIAL SECTOR STABILITY