![Show Menu](styles/mobile-menu.png)
![Page Background](./../common/page-substrates/page0021.jpg)
7
ECCB ANNUAL REPORT 2016/2017
An improvement in the US interest rate environment
contributed largely to the turn-around in the financial
performance of the Bank as interest earned on the
foreign reserve portfolio increased. This improvement
in the foreign reserve portfolio bodes well for the
stability of the EC dollar, as it provides the pool of
liquidity needed to ensure its convertibility.
Although credit markets remained liquid, extension of
credit, especially by commercial banks, continued to
be impacted negatively by the rebalancing of balance
sheets by businesses and households, adherences to
stricter standards for lending, and the fragile recovery
of real economic activity.
STRENGTHENING FINANCIAL STABILITY AND
MARKET DEVELOPMENT
The strategic platform for executing financial sector
reform initiatives is centered on the establishment of a
Single Financial Space as required by the Revised Treaty
of Basseterre, and the continued implementation of
key elements of the ECCU Eight Point Stabilisation and
Growth Programme. Furthermore, the programmes
and initiatives are consistent with fulfilling themandate
outlined in Article 4 (3) of the ECCB Agreement Act
1983, particularly as it relates to maintaining a stable
and sound financial system.
During the financial year, work intensified on the
implementation of the
Comprehensive Resolution
Strategy for Strengthening the Resilience of the
Financial System
and building a dynamic and diversified
financial system through the development of a range
of products and markets.
In collaboration with international financial institutions
and regional stakeholders, the ECCB was able to
achieve some major targets in its attempt to improve
the regulatory and supervisory framework for licensed
financial institutions, non-banks and insurance
companies in the currency union.
With regard to strengthening resilience, the focus was
on creating a legislative and institutional infrastructure
that would facilitate: better macro-prudential
regulation/supervision,
improved
system-wide
supervisory powers, and a more robust insolvency
framework and improved access to information on
the creditworthiness of borrowers. Some of the
key initiatives being undertaken in pursuit of these
objectives include the establishment of the Eastern
Caribbean Asset Management Corporation (ECAMC).
In addition, work continued towards the formation of
the Eastern Caribbean Financial Services Commission
(ECFSC), the ECCUCredit Bureau, the Eastern Caribbean
Partial Credit Guarantee Corporation (ECPCGC) and
the Eastern Caribbean Appraisal Institute (ECAI).
With respect to the developmental thrust, the main
projects targeted improving access to financial
services through Medium, Small and Micro Enterprises
(MSMEs) by strengthening the product range of
selected financial institutions; increasing business
literacy of Micro and Small Enterprises by providing
With respect to the development thrust, the main projects targeted improving
access to financial services by Medium, Small and Micro Enterprises
(MSMEs).