ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Annual Report 2022 - 2023

Despite the global economic challenges, the regional economy continued to recover and the ECCU’s financial system remained resilient and stable on account of high levels of liquidity and adequate levels of capital.

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D uring the year, the ECCU’s financial system was impacted by global macro-financial conditions, which manifested in the form of high levels of inflation and lower overall global economic activity. High levels of inflation were traced to the commodity price shocks due to the War in Ukraine and a slowdown in the Chinese economy. Additionally, monetary policy in advanced economies continued to tighten, to manage the overall increase in prices. Despite the global economic challenges, the regional economy continued to recover and the ECCU’s financial system remained resilient and stable on account of high levels of liquidity and adequate levels of capital. Credit risk, however, was elevated as inflation eroded disposable income. The high concentration of household debt on the balance sheets of financial institutions remains a threat to financial stability. The ECCB continued its work to mitigate risks to the financial sector and ensure its overall stability. The initiatives included: z Macro-prudential Policy Framework including Financial Stability Legislation; z Macro-prudential Policy Instruments/Tools; z A Crisis Resolution and Deposit Insurance Framework; and z A Regional Standard Setting Body/Office of Financial Conduct. These reforms aim to strengthen the framework for micro and macro prudential supervision of the financial sector. This should also facilitate improved operation

of financial institutions in the single economic and financial space.

Further, during the year, the ECCB continued its ongoing macro-prudential surveillance collaborating with the Single Regulatory Units (SRUs)/National Regulators. These key partners in the financial stability thrust have allowed for a more comprehensive assessment of key sectors including credit unions and insurance companies. They also provided insight and guidance on other critical areas such as the increased access and use of cryptocurrencies, by citizens and residents of ECCB member countries. ECCU Credit Bureau During the financial year, the Bank authorised the establishment of a licensed credit bureau, Creditinfo ECCU Limited, headquartered in Antigua and Barbuda. Creditinfo ECCU is currently rebranding and the ECCB granted permission for the proposed name change to Everydata ECCU Limited. The Bank liaised and collaborated with the credit bureau and engaged key credit information providers through: ; Introductory meetings and presentations of credit bureau solutions to licensed financial institutions and credit unions; ; Technical data engagements; and ; Discussions on subscriber agreements.

The Credit Bureau is currently at the soft launch phase, during which credit information providers are

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