ECCB 2018-2019 Annual Report and Statement of Accounts

FINANCIAL SECTOR STABILITY

Deliver New Risk Management Infrastructure to Support the ECCU Financial Sector ECCU Deposit Insurance Fund

Eastern Caribbean Payments Council

The Bank finalised its policy paper on deposit insurance, which was presented to the Monetary Council for approval. Going forward, stakeholders would be engaged to achieve consensus on a deposit insurance policy framework for the ECCU. The finalised policy framework will form the basis for drafting of the deposit insurance legislation, which will inform the type and scale of the deposit insurance fund. The establishment of an ECCU Deposit Insurance Fund will enhance the risk management infrastructure of the financial sector, thus contributing to financial stability. ECCU Credit Bureau An international credit bureau was selected to apply for a licence to own and operate a credit bureau to serve the ECCU. The licensing process is expected to be completed within the first two months of the 2019/20 financial year. In the interim, the Bank advances with its efforts to establish a comprehensive credit reporting regulatory framework and to coordinate pre-development process activities. The Bank will also be coordinating the delivery of public awareness and education activities, during the 2019/20 financial year. Improve Payments Infrastructure to Adapt to Evolving Market Expectations The Eastern Caribbean Payments Council was reinstituted in May 2018. The key objectives of the Payments Council is to promote operational efficiency, security and integrity of payment and settlement systems in the ECCU. The National Automated Clearing House Association Pre-arranged Payment and Deposit (NACHA PPD) standard was introduced in the ECCU in May/June 2018 through an initiative undertaken to modernise the payment system by the Eastern Caribbean Automated Clearing House Services Incorporated. Under this initiative, citizens have the option to make Eastern Caribbean dollar payments to any recipient with an account held at any commercial bank across the ECCU. The Electronic Funds Transfer (EFT) product provides a safer, faster, more convenient and more cost-effective option for making payments. The Committee on Payment and Settlement Systems and the International Organisation of Securities Commissions (CPSS-IOSCO) Principles for Financial Market Infrastructures (PFMI) was approved by the Monetary Council and has been adopted as the standard. Financial Market Infrastructures (FMIs) would be required to observe this standard within the ECCU.

The Eastern Caribbean Payments Council was first established in 2006 to provide advice on and oversight of the operations and developments of the payments system. It is responsible for facilitating the efficient and stable functioning of the payments system in the ECCU. The Payments Council is also charged with ensuring the security and integrity of payments and settlement systems in the ECCU; and promoting the innovative nature of payments, the safety of cashless payments and their accessibility to users. Deputy Governor of the Eastern Caribbean Central Bank, Trevor Brathwaite is the Chairman of the Payments Council. Brathwaite says the reconstitution of the Payments Council is timely given the increase in the use of technology to conduct payments and the need to ensure that citizens of the region are not adversely affected by developments taking place in the payments and settlements system.

Deputy Governor of the Eastern Caribbean Central Bank, Trevor Brathwaite and Chairman of the Eastern Caribbean Payments Council, explains how the council protects you, given the increase in the use of technology to make payments. Click to view.

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