ECCB
ANNUAL REPORT 2014/2015
7
EASTERN CARIBBEAN CENTRAL BANK
REVIEW OF PERFORMANCE
The financial year 2014/2015, although challenging,
represented a turning point in many ways for the
Central Bank and its member countries. With
moderate economic recovery in the global economy,
the currency union experienced marginal growth and
improvements in the fiscal performance of some of
the member countries. However, debt levels remained
elevated and the growth rate was not adequate to
reduce the level of unemployment significantly.
The vulnerabilities in the financial sector persisted.
However, programmes commenced for the reform
of the sector which would lay the foundation for the
development of a strong and resilient financial sector.
The work of the Central Bank continued to be guided
by its mandate as set out in Article 4 of the ECCB
Agreement 1983 (as amended) as follows:
i. To regulate the availability of money and
credit;
ii. To promote and maintain monetary stability;
iii. 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; and
iv. To actively promote through means consistent
with its other objectives the economic
development of the territories of the
Participating Governments.
In keeping with this mandate and, in addressing
the challenges confronting the currency union, the
activities of the Bank focused on:
•
•
Resolving the challenges in the banking sector
and implementing programmes for reforming
the financial sector;
•
•
Collaborating with member countries to
improve debt management and providing
support for the fiscal reform programmes; and
•
•
Collaborating with the OECS Commission
and the private sector to promote policies and
programmes aimed at fostering balanced and
sustained economic growth and development.
During the year, the Bank was engaged in the
implementation of the
Comprehensive Resolution
Strategy for Strengthening the Resilience of the
Financial System
, with technical support from the
International Monetary Fund (IMF), The World
Bank and the Caribbean Development Bank (CDB).
The Bank undertook a diagnosis of the commercial
banking sector in the form of stress tests and credit
portfolio reviews and that was followed by Asset
Quality Reviews (AQRs). A Dynamic Modelling
exercise would complete the diagnostic activities.
To support the implementation of the Resolution
Strategy, the Bank drafted amendments to the ECCB
Agreement and the Banking Act to strengthen the
regulatory process. The Bank also prepared the Asset
Management Company Legislation to establish the
Eastern Caribbean Asset Management Company
(ECAMC) for the purchase and management of non-
performing loans. In addition, the Bank prepared
rules and guidelines for property appraisers and for
]
To support the implementation of
the Resolution Strategy, the Bank
drafted amendments to the ECCB
Agreement Act and the Banking Act
to strengthen the regulatory process
[
