ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

A reas of F ocus F or 2016/2017

modernisation of the financial system by encouraging amalgamation of the national banks, credit unions and insurance companies; •  • Expedite efforts towards the amalgamation of the banking sectors in keeping with Point Seven of the ECCU Eight Point Stabilisation and Growth Programme; •  • Engage in policy development towards ensuring systemic stability and the efficacy of the enhanced regulatory and supervisory framework for the ECCU financial system; •  • Continue to execute the comprehensive resolution strategy and technical assistance programme for strengthening the resilience of the ECCU financial system; •  • Implement an effective resolution mechanism comprising financial safety nets, including explicit deposit insurance and the operationalisation of the ECAMC; and •  • Continue to monitor threats to financial system stability and implement resolutions, or measures to mitigate risk, at both the institutional and market levels. B anking S ervices The Bank will improve the service it provides to its clients and member governments with a view to maintaining financial stability through the provision of the necessary liquidity support to the financial system, by: •  • Enhancing its role as fiscal agent on monetary and financial matters; •  • Improving collaboration with a view to formulating an action plan for public sector

MONETARY STABILITY

R eserve M anagement A review of the reserve management infrastructure will be initiated as the Bank strives to ensure that this critical function continues to utilise best practices. The Bank will also: •  • Assess the lower yielding liquidity portfolio to determine the most prudent stance for the optimisation of returns in keeping with the ECCB’s risk tolerance parameters approved by the Board of Directors; and •  • Conduct a comprehensive review of the performance of the Bank’s global custodian, external portfolio managers and customised benchmark. C urrency M anagement The Currency Management Department will undertake initiatives to improve its operational efficiency. Its main thrust will be to acquire an upgraded banknote processing machine, and to improve its business relations with the commercial banks in the currency union.

FINANCIAL SECTOR STABILITY

B ank S upervision The Bank will: •  • Advance its efforts to facilitate the

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ECCB A nnual R eport 2015/2016