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EASTERN CARIBBEAN CENTRAL BANK
3
ECCB A
nnual
R
eport
2015/2016
3
in the system which would be followed by a strategy
to strengthen the money and capital markets to provide
financing to the private sector and, in particular, small
and medium size enterprises.
In recognition of these developments and to chart
a way forward, I articulated a vision styled
“New
Vision for a New Era: 2016 – 2020 and Beyond”
which was
endorsed by the Monetary Council on
13 February 2016.
The elements of the Vision are:
y
y
Maintaining a strong EC dollar;
y
y
Delivering comprehensive oversight of
the financial system that encourages the
development of strong and resilient financial
institutions including indigenous banks;
y
y
Monitoring credible and effective fiscal rules;
y
y
Providing thought leadership and influential
policy advice to member countries to elevate
growth, development and employment;
y
y
Enhancing our effectiveness through higher
levels of transparency and accountability; and
y
y
Continuous learning, business improvement
and sharing with key stakeholders.
The Vision is anchored on maintaining a strong
EC dollar. However, cognisant of the international
environment and the challenges in the currency union,
the strategic priorities for the ECCB are:
1. Financial Stability;
2. Fiscal and Debt Sustainability;
3. Growth, Competitiveness and Employment; and
4. Organisational Effectiveness.
In the area of financial stability, the Bank will seek
to develop a strong and resilient financial system
with well capitalised commercial banks and a macro-
prudential policy framework which focuses on
mitigating systemic risk in the financial system.
The financial sector must be capable of providing
adequate financial resources to the productive
sectors. In this regard, the Bank would pursue the
initiatives geared towards the further diversification
and development of the financial system within the
context of the Single Economic and Financial Space.
In collaboration with the World Bank and with support
from the Financial Sector Reform and Strengthening
Initiative (FIRST), a strategy and implementation plan
for a more diversified financial system in the currency
union will be developed. A diagnostic of the financial
and economic structure of the ECCU will be completed
and will be accompanied by an action plan to inform
the implementation of a financial architecture that
will facilitate diversification, including capital market
development and access to finance by Micro, Small
and Medium Enterprises (MSMEs). This project is
In recognition of the importance
of private sector investment to the
growth and development of the
currency union, the Bank initiated a
project to undertake a diagnosis of
the financial system with respect to
financing for development.