Eastern Caribbean Central Bank 2024-2025 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2024 - 2025

Financial Stability

Valuation Prudential Standards: The Bank commenced a review of its Valuation Prudential Standards for LFIs Under the Banking Act (Valuation Standards). The Valuation Standards adopt a uniform approach to appraisals and valuations in the ECCU; employ a transparent methodology for the appraisal of real estate; and adopt international standards in standardising the methodology for the conduct of appraisals in the region. The proposed amendments to the Standards are pending. They aim to ensure that the structure is in accordance with internationally accepted valuation standards; provide up-to-date guidance in relation to asset valuations; establish minimum requirements for valuation programmes and certification; and ensure that valuation standards meet the requirements of emerging risk and business practices at LFIs. The ECCB made a presentation to national regulators to encourage the application of similar requirements for Valuers in relation to the non-banking sector, to preserve financial stability and the integrity of the financial sector in the ECCU. Monetary and Financial Statistics The Bank compiled Monetary and Financial Statistics based on international standards, as

part of its Financial Stability mandate. The Bank also participated in Basel II committee meetings and training sessions and successfully launched its Basel II/III-compliant data collection form - PR16 (Quarterly Statement of Capital, Income and Expenditure) in July 2024. Work continued on the implementation of the IMF Financial Soundness Indicators (FSI) 2019 Guide, which is the new compilation framework for compilation of FSIs. The Bank made significant strides in building capacity within the Monetary and Financial Statistics (MFS) and Anti-Money Laundering (AML) Unit teams, particularly with respect to validating prudential returns using available technological tools. That effort included hands-on sessions with the AML team, focusing on cleaning qualitative data received from LFIs. The sessions enhanced the team’s ability to ensure higher quality data to support the Bank’s mandate. SWIFT’s ISO 20022 The ECCB continued its thrust towards adoption of SWIFT’s ISO 20022 standards by November 2025. In this regard, engagements were escalated with various stakeholders and key business partners, as the Bank sought to fine-tune formatting requirements and the development of the operating Real-Time Gross Settlement environment.

The Bank made significant strides in building capacity within the Monetary and Financial Statistics and Anti-Money Laundering Unit teams, particularly with respect to validating prudential returns using available technological tools.

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