ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 -2024

The legislation will herald the establishment of a deposit insurance system in the ECCU, which will be a critical element in the risk management infrastructure supporting the ECCU financial sector. It will also be aligned with the prudential supervision of licensees which would result in a robust modern institutional framework that will mitigate the risk levels within the sector. A mendments to the B anking A ct , 2015 Article 4 of the Eastern Caribbean Central Bank Agreement requires the ECCB to “... promote a sound financial structure...” which entails protecting depositors’ funds, ensuring the soundness of its licensees, and preserving the integrity of the ECCU financial system. In that regard, the ECCB will continue to pursue a holistic approach to supervision, in order to identify and respond to risks to the financial system in a timely manner. The Bank will advance the approval of the amendments to the Banking Act for submission to member countries for enactment. L egislative framework for the establishment of a R egional S tandard S etting B ody The ECCB will identify the legislative requirements for the establishment of an ECCU Regional Standard Setting Body (RSSB), for the regulation of the Non-Bank Financial Sector. The RSSB will, inter alia, support the development of uniform regulatory standards for the supervision of the NBFI sector and, in so doing, reduce regulatory gaps and enhance the regulation of multi-jurisdictional firms and financial conglomerates.

78

78