Eastern Caribbean Central Bank 2024-2025 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2024 - 2025

Legislative Agenda

Banking (Amendment) Bill, 2024 In keeping with its mandate under Article 4 of the Eastern Caribbean Central Bank Agreement to promote a sound financial structure conducive to the balanced growth and development of the economies of Participating Governments, the ECCB undertook a review of the Banking Act (2015) during which feedback was solicited from key industry stakeholders, including licensed financial institutions and the various offices of Attorneys General across the Eastern Caribbean Currency Union (ECCU). During the year, an Amendment Bill was developed which features enhancements to the regulatory framework which embody banking and supervisory best practices. The Bill introduces a new area of market conduct supervision which supports consumer protection, promotes financial literacy and inclusion and market integrity. At its 108 th Meeting convened on 19 July 2024, the Monetary Council of the ECCB, considered and approved the Banking (Amendment) Bill, 2024 for passage in Member States. The Bill and explanatory Memorandum were submitted to member countries on 20 November 2024 for the consideration of Cabinets and subsequent enactment by the respective Parliaments. Deposit Insurance During the financial year, the Bank continued its efforts towards the development of a deposit insurance system to protect depositors of licensed financial institutions from the loss of their deposits.

At its 108 th Meeting convened on 19 July 2024, the Monetary Council of the ECCB, considered and approved the Eastern Caribbean Deposit Insurance Corporation (ECDIC) Agreement (the Agreement) and the correlating enacting Bill. The Bill is meant to operationalise the Agreement within the domestic sphere of each Member State of the ECCU. The Agreement, primarily, provides the framework for bringing the ECCU in line with international best practices with respect to having a comprehensive financial safety net system. Its underlying purpose is to ensure the financial intermediation process is not severely disrupted by negative events, such as bank failures. Under the Agreement, all financial institutions licensed under the Banking Act, 2015 (policyholders) are mandated to adhere to the deposit insurance schema. Under this schema, the Eastern Caribbean Deposit Insurance Corporation is established. Further, the Agreement provides for the assessment and payment of premiums and the establishment of a Deposit Insurance Fund from which compensation is paid in the event of failure of a policyholder. The ECDIC Agreement has been signed by all member countries. The Agreement, along with the enabling legislation, was submitted on 24 January 2025 to member countries for the consideration of their respective Cabinets and enactment by their Parliaments.

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