ECCB 2020-2021 Annual Report and Statement of Accounts

FINANCIAL SECTOR STABILITY

for the Modernisation of the Payment System Act; 3. Policy Considerations for Data protection in the ECCU. In its modernisation agenda, the Bank looked into opening access to the Eastern Caribbean Automated Clearing House (ECACH) to other classes of institutions. This entailed an amendment to the ECACH rules, which is currently undergoing the stakeholder engagement process for comments prior to its finalisation. The second phase of this initiative is to work closely with the financial institutions and the Eastern Caribbean Automated Clearing House Services Incorporated (ECACHSI) to give effect to this plan. The ECCB also continued to enhance its oversight mandate by improving the capacity of Financial Market Infrastructures (FMIs) to undertake their self-assessment exercise. This is necessary in an effort to comply with the Principles for Financial Market Infrastructures (PFMIs) that was issued by the Committee on Payments and Market Infrastructures and the International Organisation of Securities Commission (CPMI-IOSCO) and approved for adoption by the Monetary Council in October 2018. This is a pre-condition in conducting the oversight of those entities. Three FMIs were provided with training and two have commenced their self-assessment exercise. Support Consolidation Within The Banking Sector The ECCB continued to assist participating domestic banks with their shared services initiative, considered to be a preliminary step towards consolidation of the ECCU indigenous banking sector. The focus of the initiative is on the participants’ sharing of the rights and obligations of technologically-advancedRisk andCompliance functions, with theultimateobjectiveof realising greater efficiency and synergy in theprosecution of the duties associated with both functions. The project commenced in July 2020 with Stage 1 - Initiate/Plan, followed by the Current State Assessment of each participating bank. The project is currently at the High Level Design stage, which includes delivery of workshops to obtain feedback on future state high level designs, and compilation of a draft Business Case.

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The Bank developed an execution strategy for deploying the ECCU Money and Capital Market Development Initiative (MCM 3.0), which is an initiative geared towards unleashing key catalysts for capital market development in the ECCU.

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Deepen Money And Capital Markets ECCU Money and Capital Market Development Initiative (MCM 3.0)

During the year, the Bank developed an execution strategy for deploying the ECCU Money and Capital Market Development Initiative (MCM 3.0), which is an initiative geared towards unleashing key catalysts for capital market development in the ECCU. The main deliverable of this initiative is the development and implementation of an ECCU Capital Market (Development and Literacy) Master Plan (CMMP) to promote the strengthening and innovative transformation of the regional money and capital markets for financing sustainable growth and development. Through this strategy, the Bank will develop a regional development tool featuring a multi-year cohesive strategic roadmap and action plan in collaboration with key capital market stakeholders and with the support of international and regional development partners. This will be supported by an industry-wide change management approach for the synchronised implementation of interdependent initiatives for sustained long-term public, legislative and private sector support to mitigate vicious cycles of underdevelopment.

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2020/2021 10