ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 -2024

FINANCIAL STABILITY

Other regulations that will operationalise the principle legislation will be identified for development and issuance. 5. Finalisation of the consultancy arrangements for the drafting of the Data Protection and Privacy Bill and stakeholder consultation to achieve consensus on the draft bill. and regulatory infrastructure to support the establishment of a macro prudential risk based policy framework in the ECCU inclusive of F inancial S tability L egislation The ECCB will advance its efforts towards developing the legal and regulatory infrastructure to support the establishment of a macroprudential risk based policy framework in the ECCU including Financial Stability Legislation. It is anticipated that the legislation will be drafted and consultations will be held with stakeholders. Once finalised, the legislation will be submitted to member countries for enactment. The ECCB will facilitate the development of the legislative framework to support the establishment of an Office for Financial Conduct and Inclusion (OFC) within the ECCB. The Office is intended to be responsible for, inter alia, regulating and addressing matters relating to financial consumer protection, promoting market integrity, ensuring a competitive market environment, and promoting financial literacy and inclusion. D evelopment of the legal O ffice of F inancial C onduct and I nclusion

R egulation and S upervision During the financial year 2024-2025, the Bank will focus on: 1. Further enhancements to the regulatory and supervisory apparatus of LFIs, to address climate related financial risk, cyber risk and other emerging risks. 2. Enhancing the supervisory framework through the operationalisation of the Basel II/III capital adequacy framework including implementation of Pillar 1 and Pillar 2, to bolster the LFIs’ capital position and risk management function. The way forward includes: go live reporting by quarter three of 2024, conducting Basel II/III reviews by quarter four of 2024, operationalisation of the Supervisory Review and Evaluation Process, and commencing the implementation of Pillar 3. 3. Continued implementation of the payment system oversight framework including finalising the oversight manuals for the payments and settlement systems. The Bank will conduct on- site inspections to complement the off-site monitoring of Financial Market Infrastructures (FMIs). The overarching objective will be to strengthen the resilience of FMIs to mitigate systemic risk, by ensuring compliance with the CPMI-IOSCO Principles for FMIs. 4. Continued facilitation of the enactment of the Payment System and Services Bill and finalisation of the Payment System and Services (Licensing) Regulations. The Regulations are expected to be issued under the principle bill, immediately following its enactment in June 2024.

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