ECCB 2025-2026 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2025 - 2026

Payments Modernisation and Financial Inclusion

T he Bank advanced a comprehensive agenda to modernise the payments ecosystem and expand financial inclusion across the ECCU. Through innovative financial instruments, strengthened legislative frameworks, and targeted capacity-building initiatives, the Bank continued to promote broader access to financial services, enhance digital payments, and deepen participation in the formal financial system. The Bank successfully adopted the SWIFT ISO 20022 standard in November 2025, marking a significant step in modernising the region’s payments infrastructure. Extensive stakeholder engagement and technical collaboration supported the transition, including refinements to payment formatting and enhancements to the Real-Time Gross Settlement (RTGS) environment. Capacity building remained central to this effort, with training programmes and regional workshops equipping both Bank staff and financial institutions with the knowledge required to operate within the new standard. These advancements position the financial system to achieve greater efficiency, interoperability, and resilience in an evolving digital landscape. Payments System Infrastructure Modernisation Retail Bond Programme: Expanding Access to Investment Opportunities A key milestone during the year was the launch of the inaugural ECCU Retail Bond Programme, designed to promote financial literacy and inclusion by broadening access to investment opportunities for individuals.

The Government of Grenada piloted the initiative with the issuance of the first household bond on 31 October 2025, as part of Financial Information Month Festival. The bond, valued at EC$5.0 million with a two-year tenor and a fixed interest rate of 4.25 per cent, attracted strong public interest. Although the final subscription reached EC$4.28 million (85.5 per cent of the target), the pilot was considered a success given the strong participation and interest in the bond. Importantly, the programme significantly expanded market participation, with 350 individuals investing in the bond—93.0 per cent of whom were first time investors. This compares to a pre-existing base of approximately 600 individual investors across the Regional Government Securities Market (RGSM). The initiative therefore represents a transformative step in democratising access to financial instruments, deepening capital markets, and fostering a culture of savings and investment among households. Advancing the Financial Inclusion Agenda The Bank completed the development of the ECCU Financial Inclusion and Literacy Strategy (EFILS) for the period 2026–2031. The Strategy provides a coordinated, evidence-based framework to improve access to financial services, increase the adoption of digital payments, and strengthen financial capability and consumer protection. The Strategy was informed by findings from the 2023 ECCU Financial Literacy and Financial Inclusion Survey, which revealed significant gaps in financial knowledge and behaviour, with only one in 12 individuals meeting minimum financial literacy standards. These insights directly shaped the Strategy’s priorities and key performance indicators, ensuring targeted and measurable interventions.

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