ECCB 2016/2017 Annual Report

ECCB ANNUAL REPORT 2016/2017

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business and financial training and coaching; developing an Entry Level Tier Market for firms on the Eastern Caribbean Stock Exchange; and enacting legislation to govern the operation of investment funds. Some of these deliverables are being executed under The World Bank’s FIRST Initiative Project and through collaboration with the German Savings Banks Foundation for International Cooperation. The Payment and Settlement System also plays a significant role in the maintenance of financial stability in the ECCU. It is therefore important that the Bank develop and operate a system that is not only efficient and liquid but also one that responds to the latest technological innovations. To this end, work is being finalised for the implementation of the Electronic Funds Transfer (EFT) phase of the Eastern Caribbean Automated Clearing House (ECACH) project, which should be fully operationalised by the first quarter of 2018. The Bank recognises that achievement of its primary statutory objectives of financial and monetary stability could only be realised effectively in an environment characterised by a high and sustained level of growth. While growth has returned in the post global financial crisis era, it has been lower than the growth trend in the past. In addition, the ECCU countries continue to lag behind other comparator countries in terms of the performance of competitiveness and productivity indicators. It is therefore imperative that the Bank continue to engage member states on the issue of revitalising and returning the sub-region to a sustained high growth path. This should result in improved macroeconomic indicators such as the unemployment SUPPORTING HIGH SUSTAINED GROWTH, COMPETITIVENESS AND EMPLOYMENT

rate, fiscal and debt balances and an overall standard of living of citizens.

During the financial year, the Bank played a critical role in supporting and promoting growth initiatives through advocacy, policy research and specialised direct interventions. The ECCB and the OECS Commission signed a Memorandum of Understanding (MoU) to establish a more effective framework for collaboration to develop a plan of action for addressing low growth and declining productivity in the sub-region. The MoU is also to be used as a vehicle to facilitate inter- institutional coordination of responsibilities under the Revised Treaty of Basseterre, especially as it pertains to the establishment of the Economic Union Protocols –A Single Economic and Financial Space. In terms of policy research, the Bank executed a comprehensive research programme which resulted in the publication of two volumes of working papers covering policy issues related to growth and competitiveness, and monetary and financial sector stability. TheBankplayedacritical role insupporting and promoting growth initiatives through advocacy, policy research and specialised direct interventions.