ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

REVIEW OF PERFORMANCE

•  • 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 [

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;

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ECCB ANNUAL REPORT 2014/2015