ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Annual Report 2022 - 2023

Harmonised Insolvency and Bankruptcy Legislation

Governments in April 2020 for issuance. To date, the Regulations have been issued by seven member countries. Deposit Insurance The Bank continued its efforts towards the development of a deposit insurance system to protect depositors of licensed financial institutions from the loss of their deposits, in full or in part. During the year, the Bank completed the first draft of an Eastern Caribbean Deposit Insurance Corporation Agreement and Bill. The Agreement and Bill, together with the policy framework, were submitted to key stakeholders, including, the Financial Secretaries, Attorneys General, commercial banks, credit unions, and single regulatory units/Financial Services Regulatory Commissions (FSRCs) for comments. The Bank continues to receive comments from stakeholders which are expected to inform the final draft of the Agreement and Bill. The deposit insurance system would form part of a broader and multi-faceted financial safety net programme in the ECCU. Coverage and funding are key factors in operationalising a deposit insurance system and are provided for, in the legislation. Credit Reporting Bill The Bank continued to encourage member governments to bring the Credit Reporting Bill and Regulations into force. The development of a credit reporting infrastructure would allow for the local credit markets to function more efficiently by providing financial institutions and other lending institutions with an additional mechanism to evaluate the creditworthiness of their customers and monitor their credit circumstances. To date (6) member countries have passed the Bill and the Regulations have been issued in four countries.

During the year, the Bank continued to partner with the World Bank Group (WBG) to identify a roadmap of activities that would facilitate the development of a modern insolvency/bankruptcy framework in the ECCU. Virtual Asset Business Bill During the year, the Bank continued to follow up with member governments on the enactment of the Virtual Asset Business Bill which was submitted to the member states in November 2020 for enactment. The Bill has been passed in six (6) member countries. Recognising the importance of completing the legislative framework for virtual asset business in the ECCU, the Bank has secured technical assistance through the Caribbean Digital Transformation Project (CARDTP) to engage a Consultant to assist in completing the legislative regime for the regulation and supervision of virtual asset business in the ECCU. Specifically, the technical assistance is aimed at reviewing the Virtual Assets Business legislation and engaging with national regulators on regulatory and supervisory issues affecting the sector, which would inform draft regulations for virtual assets business and guidelines for licensees. Draft Virtual Assets Business Regulations have been developed for discussion with member countries. It is expected that the legislative framework for virtual asset business in the ECCU will contribute to maintaining the integrity and stability of the ECCU financial sector, promote a sound enabling environment for provision of virtual assets services and facilitate innovation in the sector. Completion of Virtual Asset Business Legislative Regime

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