ECCB 2014-2015 Annual Report and Statement of Accounts

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.

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.

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

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ECCB ANNUAL REPORT 2014/2015