Eastern Caribbean Central Bank 2024-2025 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2024 - 2025

Areas of Focus 2025-2026

Regulations. The ECCB will continue to support the consultancy under the Caribbean Digital Transformation Project, to develop and issue other regulations under the principal legislation. Data Protection and Privacy Bill: Continue to support the consultancy to develop the harmonised Data Protection and Privacy Bill; finalise the Legislative and Regulatory Review and Gap Analysis Report; coordinate consultations with stakeholder groups; and assist with the review and finalisation of the Bill. Macro and Microprudential Regulation: The ECCB will continue its efforts at strengthening financial stability across the ECCU’s financial system through concerted effort in areas related to macroprudential and microprudential regulation, and by enhancing financial sector indicators. These efforts include the drafting of financial stability legislation; the development of a crisis resolution mechanism; the development and implementation of macroprudential instruments and indicators; and the continued macroprudential surveillance of financial institutions in the ECCU, with a view towards mitigating against systemic risks. Monetary and Financial Statistics In the fiscal year 2025/2026, the Bank, as part of its Financial Stability mandate, will continue to compile Monetary and Financial Statistics based on international standards. As an enhancement to its supervisory framework, the Bank will also undertake verification missions to its Licensed Financial Institutions (LFIs).

IMF Financial Soundness Indicators (FSI) 2019 Guide, with the goal of completing this initiative within the fiscal year 2025/2026. The ECCB will also continue the work on expanding the monetary and financial statistics to include data from the ECCB’s licensed non-bank financial institutions. This is aimed at enhancing the ECCB’s monitoring of the financial sector in the member countries. In the upcoming financial year, 2025/2026, the Bank will also enhance the Monetary Statistics to include data on the IMF Special Drawing Rights (SDRs). This is aimed at ensuring consistency with External Sector Statistics. Strengthening Data Practices Looking ahead, a major initiative will be the completion of a research paper on strengthening data practices for financial stability in the Eastern Caribbean Currency Union (ECCU). The basis of this paper is a data management maturity survey, which was conducted among the region’s LFIs and provides a comprehensive analysis of their current state of data practices. The ECCB will also support the staff and commercial banks in conducting the Bank Confidence Survey, providing valuable data to assess public trust in the financial system. Deposit Insurance The Bank will pursue its objective to establish the Eastern Caribbean Deposit Insurance Corporation (ECDIC) for the ECCU financial system towards protecting small, less sophisticated depositors. In the financial year 2025/2026, the bill is expected to be passed in member states’ Parliaments. In the interim, the Technical Working Group will begin preparatory work to develop the work plan for the ECDIC. This would include identifying and

Work will continue on the implementation of the

75