ECCB
ANNUAL REPORT 2014/2015
11
EASTERN CARIBBEAN CENTRAL BANK
previous year. The increase in currency in circulation
was consistent with the increasing trend over the last
five (5) years as depicted in Chart III.
Chart III
At its 81
st
Meeting held on 24 February 2015, the
Monetary Council took the decision to withdraw the
one and two cent coins from circulation. In keeping
with that decision, effective 1 July 2015, the ECCB
will no longer issue the coins to the commercial banks.
During the new financial year, the ECCB will engage
in dialogue with the various stakeholders to discuss
and formulate a plan for the withdrawal of the coins.
FINANCIAL SECTOR STABILITY
In support of its role to maintain the stability and
integrity of the ECCU financial system, the ECCB
augmented its efforts towards the implementation of
an enhanced regulatory and supervisory framework
through the on-going implementation of the
ECCU
Eight Point Stabilisation and Growth Programme
,
and execution of the
Comprehensive Resolution
Strategy for Strengthening the Resilience of the ECCU
Financial System
.
The ECCB continued to manage the affairs of the
ABI Bank Limited, the National Bank of Anguilla Ltd
and the Caribbean Commercial Bank (Anguilla) Ltd,
which were intervened under the special emergency
powers in Part IIA, Article 5B of the Schedule
to the ECCB Agreement Act 1983. The purpose
of the interventions was to protect depositors and
creditors and maintain confidence in the banking
sector. During the year, the Bank advanced its work
towards the orderly resolution of those institutions, to
ensure that depositors and creditors were protected.
The resolution process is expected to mitigate the
potential for heightened contagion risks and result in
the stability of the overall financial system.
The Bank embarked on a number of initiatives aimed
at resolving the challenges in the banking sector,
including a programme of on-site credit risk reviews
for selected commercial banks. The Bank also
expended significant effort in the following areas:
•
•
Facilitating independent assessments of the
banking sector, including the conduct of an
Asset Quality Review (AQR) and a process of
Dynamic Modelling; and
•
•
Continued support for the national banks
towards consolidation within the sector.
