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ECCB ANNUAL REPORT 2016/2017
The resolution plan included: (i) the transfer of
good assets and matching deposit liabilities up to
a threshold of approximately $2.8 million from the
CCB and NBA to the National Commercial Bank of
Anguilla (NCBA), which commenced operations on
25 April 2016; and (ii) the transfer of deposit liabilities
over the $2.8 million threshold from CCB and NBA to a
Depositor Protection Trust.
FINANCIAL SECTOR STABILITY INITIATIVES
Article 4(3) of the Eastern Caribbean Central Bank
Agreement 1983, identifies one of the four purposes of
the Bank as:
To promote credit and exchange conditions
and a sound financial structure conducive to the
balanced growth and development of the economies
of the territories of the participating Governments
. In
this regard, the Bank made notable progress in the
establishment and operationalisation of the following
initiatives:
Eastern Caribbean Asset Management Corporation
The Board of Directors of the Eastern Caribbean Asset
Management Corporation (ECAMC) had its first official
meeting in November 2016. The ECAMC management
team is preparing for the full operation of the entity
through the formulation of requisite strategies and
policies, and training of the Board of Directors and
management. Once fully operational, the ECCB will
appoint the ECAMC as receiver for the three existing
receiverships.
Deposit Insurance
In collaboration with The World Bank, the ECCB
coordinated a preliminary analysis of the pre-requisites
for the establishment of a robust Deposit Insurance
Fund for the ECCU. The establishment of an effective
deposit insurance system in the ECCU is expected to
contribute to financial stability by providing protection
to the most vulnerable depositors.
ECCU Credit Bureau
As part of the initiative to improve credit reporting
in the ECCU, the Bank intensified its efforts towards
the establishment of a Credit Bureau in the ECCU.
At its meeting of 2 March 2017, the Monetary
Council approved the draft legislative package for
the establishment of the Credit Bureau, which was
submitted for passage through the Parliaments of the
respective member territories.
The establishment of anECCUCredit Bureau is expected
to address the issue of asymmetric information;
accelerate the speed with which credit applications
are processed as a result of the centralisation of
information; provide credit-granting institutions with a
bettermeans of assessing credit risks, whichwould lead
to an improvement in the quality of lending decisions;
and facilitate the extension of credit to underserved
segments of the population, in particular micro, small
and medium businesses and low-income consumers.
Eastern Caribbean Appraisal Institute
The Bank, with technical assistance from the IMF,
completed the draft Agreement and Bill establishing
the Eastern Caribbean Appraisal Institute (ECAI) and
Rules governing the operations of the ECAI. The initiative
to establish the ECAI is expected to achieve the following
outcomes:
•
•
A governance structure that supports and sustains
the further development of the appraisal industry
in the ECCU;
•
•
Formalised training and certification frameworks;
•
•
Improved oversight that develops expertise and
promotes integrity in the industry; and
•
•
Consistent application of internationally accepted
appraisal standards.