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ECCB ANNUAL REPORT 2016/2017
geopolitical developments, including Brexit and the US
presidential elections.
In the Eastern Caribbean Currency Union (ECCU),
growth was estimated at 2.2 per cent, well below
the target of 5.0 per cent per annum agreed upon by
ECCB member governments. Relatedly, private sector
credit declined for the fifth successive year, forcing
a discussion about creditless growth. It is our hope
that overall improvement in the macro-economy
and the operationalisation of the Eastern Caribbean
Asset Management Corporation (ECAMC) will help to
address this issue.
We continue to lament the paucity of data and
statistics in our region. This includes, for example, the
absence of labour force surveys in some ECCB member
countries, to better guide policy making in respect of
employment and labour market reforms.
We are also concerned about the ranking of ECCB
member countries on the
Ease of Doing Business
Index
. We wish to see the countries move into the top
50 of the Index. Such a rise will require considerable
focus and a concerted effort over the next three years.
With respect to financial stability, several financial
soundness indicators of the ECCU banks improved,
including capital adequacy, asset quality and
profitability. Relatedly, over the year, the ECCB made
significant strides in respect of the frequency and the
timeliness of onsite banking examinations.
After a hiatus of three years, the Bank resumed
meetings of the Regulatory Oversight Committee
(ROC) which comprises the ECCB and the non-
bank regulators in member countries. The areas of
collaboration include: financial stability reporting and
Anti-money Laundering/Combating the Financing
of Terrorism (AML/CFT). Speaking of the latter, the
ECCB Monetary Council took an important decision
in July 2016 to have the ECCB assume responsibility
for AML/CFT supervision for banks. Pursuant to that
decision, the Bank is finalising a Memorandum of
Understanding (MoU) between the ECCB and national
AML/CFT authorities; has drafted amendments to
give legal effect to the decision and has commenced
capacity building in the area of AML/CFT, with support
from the US Treasury Department.
As we look forward to the new financial year 2017/18,
we do so with a sense of optimism and anticipation.
We are highly motivated to pursue our vision for the
currency union which encompasses:
1. A strong EC dollar;
2. A strong and resilient financial system;
3. Sustainable public finances;
4. A single economic and financial space;
5. Single–digit unemployment (full employment);
and
6. A striving and thriving citizenry.
Cognisant of the global economy and its attendant
uncertainties, the outlook for the ECCU economy is
generally positive but significant and faster reforms
are required to expedite and elevate the growth and
employment trajectory.
Going forward, priority aspects of the Bank’s work will
include:
Monetary Stability
•
•
Ensuring the stability and strength of the EC
dollar by maintaining an adequate level of
foreign reserves.