ECCB
ANNUAL REPORT 2014/2015
30
EASTERN CARIBBEAN CENTRAL BANK
ACTIVITIES IN THE YEAR AHEAD
MONETARY STABILITY
R
eserve
M
anagement
The Bank will continue to manage its foreign reserves
to achieve the broad objectives set out in the ECCB
Agreement (1983). As part of fulfilling these
objectives, the Bank will:
•
•
Assess the lower yielding liquidity portfolio to
determine if funds should be transferred to the
higher yielding core tranche;
•
•
Review the performance of the Bank’s money
managers; and
•
•
Conduct the annual rebalancing of the ECCB
Customised Benchmark to continue to preserve
the risk tolerance of the Bank.
C
urrency
M
anagement
During the year, the Currency Management
Department will:
•
•
Focus on the withdrawal of the one and two
cent coins from circulation including: engaging
in discussions with the relevant stakeholders to
ensure a seamless transition, implementing a
public education campaign, and instituting
a rounding system for the settlement of cash
transactions in lieu of issuing the one and two
cent coins as change.
•
•
Propose for circulation, a limited quantity
of painted commemorative circulation $1
coins in observance of the 50
th
Anniversary
of the Eastern Caribbean Currency Authority
(ECCA) banknotes. The coins should be
issued in October 2015 as a part of the 2015
Financial Information Month (FIM) activities
and should not be redeemed once issued.
FINANCIAL STABILITY
B
ank
S
upervision
The Bank will continue to:
•
•
Engage in policy development towards
ensuring systemic stability and the efficacy
of the enhanced regulatory and supervisory
framework for the ECCU financial system;
•
•
Monitor threats to financial system stability and
implement resolutions, or measures to mitigate
risk, at both the institutional and market levels;
•
•
Execute the comprehensive resolution strategy
and technical assistance programme for
strengthening the resilience of the ECCU
financial system;
•
•
Implement an effective resolution mechanism
comprising financial safety nets, including
deposit insurance and the operationalisation of
the ECAMC; and
•
•
Facilitate the modernisation of the financial
system by encouraging amalgamation of the
national banks, credit unions and insurance
companies.
B
anking
S
ervices
The Bank will continue to improve the service it
provides to its clients by monitoring regional and
international developments to ensure that adequate
risk mitigating and liquidity support mechanisms are
in place to maintain financial stability in the Eastern
Caribbean Currency Union by:
