Eastern Caribbean Central Bank 2024-2025 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2024 - 2025

Legislative Agenda

Legislative Framework for the Establishment of the Eastern Caribbean Financial Standards Board The Monetary Council of the ECCB approved an optimal regulatory framework to supplement the current regulatory arrangements,to further support financial integration and strengthen financial stability in the ECCU. This framework includes the establishment of an Eastern Caribbean Financial Standards Board (ECFSB) to remove regulatory gaps in the financial sector, reduce the scope for regulatory arbitrage and enhance the regulation of multi-jurisdictional firms and financial conglomerates. The ECFSB will be responsible for designing and issuing standards for regulation of the non-bank financial sector across the eight (8) member jurisdictions of the ECCU. During the 2024/2025 financial year, the Bank engaged a legislative drafting consultant to develop the legislative framework for the establishment of the ECFSB for the regulation of the non-bank financial sector. Insurance and Pensions Legislation During the year, the Bank engaged a legislative consultant to update and complete the draft legislative framework for the insurance and pensions sector in the ECCU. The legislative framework is intended to, inter alia: 1. Reform the law relating to the insurance industry; 2. Regulate insurance businesses and pension plans; and 3. Encourage the promotion of efficiency and competition in the insurance and pension industries;

4. Provide for the protection of consumers; and 5. Provide for a single financial space in the insurance sector. Development of the Legal and Regulatory Infrastructure to Support the Establishment of a Macro-Prudential Risk-Based Policy Framework in the ECCU Inclusive of Financial Stability Legislation During the 2024/2025 financial year, the Bank revisited the draft policy proposal in respect of the framework for macroprudential regulation of the financial system of the ECCU. This macroprudential framework is expected to include the enactment of financial stability legislation with appropriate mandate, scope and powers, establishment of a Regional Financial Stability Committee and a technical secretariat to support the analytical functions related to the financial stability mandate. During the year, the Bank continued its efforts to promote the development of a modern insolvency and bankruptcy framework in the ECCU. In this regard, the Bank partnered with the World Bank Group and INSOL International in hosting a 2 nd Caribbean Insolvency Roundtable on 9 December 2024. Harmonised Insolvency and Bankruptcy Legislation

This 2 nd Caribbean Insolvency Roundtable brought policymakers, insolvency practitioners and the

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