ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

P ayment S ystem In collaboration with commercial banks and the Eastern Caribbean Automated Clearing House Services Incorporated (ECACHSI), the Bank commenced the second phase of the Eastern Caribbean Automated Clearing House (ECACH) project. The second phase is the Electronic Funds Transfer (EFT) phase which, upon completion, will create the platform to enable participants to develop products to facilitate payments that facilitate: • Consumer to Consumer, example: Rent and Remittances; • Consumer to Company, example: Taxes and Utilities; • Company to Consumer, example: Payroll and Social Security; and • Company to Company, example: Loans and Investments. Efforts continued to ensure that communication, settlement and back office functions were executed with precision in order to minimise risks. The Bank increased its efforts to complete the implementation of the Legislative Reform Programme aimed at strengthening the resilience of the ECCU financial sector; and the development of the single financial and economic space. The Bank realised traction on the following pieces of legislation: Banking Act – The Banking Act 2015 was enacted by the eight Participating Governments and commenced in seven of the eight member territories. The Act transfers licensing authority for banks to the Central L egislative S ervices Legislative Agenda

In July 2015, the Monetary Council approved the establishment of the ECCU Credit Bureau. The ECCB, in collaboration with the International Finance Corporation (IFC) and the Canadian Department for Foreign Affairs, Trade and Development, successfully hosted a series of credit bureau sensitisation workshops aimed at increasing stakeholders’ awareness of the use of credit bureaus, credit reporting legislation and the ECCU Credit Bureau Project. The main participants at the workshops included representatives from financial institutions, the Ministries of Finance, the Single Regulatory Units and utilities and telecommunications companies. B anking S ervices During the year, the Bank, in fulfilling its mandate to maintain financial stability, increased its focus on its role as banker to member governments and commercial banks in accordance with Parts VIII and IX of the ECCB Agreement Act (1983). Towards this end, the Bank: 1. Provided the necessary liquidity support to the financial system; 2. Focused on further development of the Automated Clearing House; 3. Explored ways to enhance its role as fiscal agent to member governments particularly as it related to the Regional Government Securities Market (RGSM); 4. Collaborated with member governments to develop a cohesive action plan for public sector financial management; and 5. Facilitated member governments’ enhancements of their cash management operations.

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ECCB A nnual R eport 2015/2016