ECCB 2018-2019 Annual Report and Statement of Accounts

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| EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2018/2019 9
ƒ ƒ At a special meeting of the Regulatory Oversight Committee held on 18 January 2019, the OTA/USDOT presented on the FATF mutual
evaluation process and financial sector supervision. The presentation focused on the role of the ECCB in the process for the domestic
banking sector and the oversight required by other supervisory and competent authorities given the multi-jurisdictional supervisory
regime in the ECCU.
ƒ ƒ At the request of Governments of Saint Lucia, Grenada, Montserrat and St Vincent and the Grenadines, the ECCB appointed
representatives to these jurisdictions’ National Risk Assessment Working Groups.
ƒ ƒ The ECCB circulated, to all LFIs, request for information to facilitate the conduct of an AML/CFT risk assessment, in November
2018. On completion of the risk assessment, all LFIs will be assigned a composite AML/CFT risk rating. The assigned risk rating will
determine the level of supervisory oversight and frequency of on site examinations.
Basel II/III Implementation
In February 2018, the ECCB established a Basel II/III Implementation Group to give focused attention for implementation by the proposed
date of June 2020. In facilitating the roll-out of the implementation road map, the group developed supporting standards, implemented
the quantitative impact studies, and sensitised licensees and other key stakeholders.
International Financial Reporting Standard (IFRS) 9 Implementation
The ECCB continued to monitor its LFIs’ implementation of measures to ensure compliance with International Financial Reporting Standard
(IFRS) 9.
Develop a Macro-Prudential Framework
The establishment of a macro-prudential framework is key to ensuring financial stability. In July 2018, the Monetary Council approved the
governance framework for undertaking macro-prudential surveillance via the establishment of a Regional Financial Stability Committee and
a Macro-prudential Policy Committee. Additionally, the Bank requested the Monetary Council to support efforts aimed at collecting data
from Single Regulatory Units (SRUs). The data collection aspect of this objective is ongoing and the SRUs in member countries continue to
lend support to the task.
ABOUT BASEL II
Basel II is an international business standard that requires
financial institutions to maintain enough cash reserves to cover
risks incurred by operations. The Basel accords are a series of
recommendations on banking laws and regulations issued by the
Basel Committee on Banking Supervision (BSBS).
INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS) 9
International Financial Reporting Standard (IFRS) 9 specifies how
an entity should classify and measure financial assets, financial
liabilities, and some contracts to buy or sell non-financial items.
IFRS 9 requires an entity to recognise a financial asset or a
financial liability in its statement of financial position when it
becomes party to the contractual provisions of the instrument.
FINANCIAL SECTOR STABILITY
ABOUT BASEL III
Basel III is an internationally agreed set of measures developed
by the Basel Committee on Banking Supervision in response to
the financial crisis of 2007-09. The measures aim to strengthen
the regulation, supervision and risk management of banks.
Basel III standards are minimum requirements which apply
to internationally active banks. Members are committed to
implementing and applying standards in their jurisdictions within
the time frame established by the Committee.
Source:
Source:
Promote the Development of the Financial Sector to Increase Citizen Access to Credit and Other Financial
Services
Carmen Gomez-Triggs was appointed as the Chief Executive Officer of the Eastern Caribbean Partial Credit Guarantee Corporation
(ECPCGC). Current efforts are focused on the recruitment of three other initial staff members, Chief Financial Officer, Senior Operations
Officer and Administrative Assistant. The Bank continues to work with the ECPCGC’s Board of Directors and The World Bank on the final
steps for operationalisation of the Corporation by the end of June 2019.