ECCB Communications Workshop for ECCU Media Practitioners

Eastern Caribbean Central Bank

STOP LOSS MECHANISM

1. Introduced in 2024

2. Large unrealized losses can negatively impact the profitability of the Bank

3. Seeks to make a direct link between unrealised losses on the Bank’s balance sheet to the Backing Ratio 4. It forms a second layer of protection against an undesired decline in the Backing Ratio and is sensitive to the Bank’s appetite for accounting losses

Transforming The ECCU Together

3/23/2026

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