ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

the enhanced resolution framework in the Banking Bill. 2. Revised Banking Bill – New provisions have been designed to maintain the soundness and stability of the financial system and to facilitate the establishment of a single financial space in the sub-region consistent with the Revised Treaty of Basseterre establishing the Organisation of the Eastern Caribbean States Economic Union. Specifically, the Basel Committee’s Core Principles of Effective Banking Supervision have been incorporated to enhance the Central Bank’s cadre of corrective measures where there are regulatory violations or where depositors are threatened. In addition, the licensing authority for commerical banks has been transferred to the ECCB. 3. Eastern Caribbean Asset Management Corporation Agreement and Bill - To facilitate the resolution of banks facing challenges, an agreement for the establishment of the Eastern Caribbean Asset Management Corporation (ECAMC) as a statutory entity was also prepared. The ECAMC will be established as a regional asset management vehicle for the purpose of acquiring, managing, and disposing of problem assets of approved financial institutions. Institutional Arrangements The Foreclosure Committee, constituted by membership from: OECS Bar Association; ECCU Bankers Association; Registrars of Land in Antigua and Barbuda, Grenada, St Kitts and Nevis and Saint Lucia; the ECCB; the OECS Commission; Attorney

General’s Chambers, Montserrat; Financial Secretary, Commonwealth of Dominica; and a consultant from The World Bank, conducted a review of the existing Foreclosure Legislation in the ECCU. The ultimate aim of the review was to assess the extent to which critical legislative, administrative and business practices can be made uniform and reformed to improve efficiencies in the process for land ownership and disposal of mortgage collateral in the context of a single financial space. The latter is critical to the smooth functioning of the commercial banking system. The Committee has submitted a comprehensive report for approval by the Monetary Council, advocating uniformity of the laws on land ownership and mortgages and the development of efficient practices and procedures for the realisation of mortgage collateral within a single financial space. The ECCB, as fiscal agent to member governments, continued to support the operations and development of the Regional Government Securities Market (RGSM) as a major source of financing for member governments. Staff of the debt units in the respective ECCU countries received training in various aspects of the RGSM under the CANEC-DMAS Project. The number of auctions on the RGSM increased to 56 during the financial year compared with 50 in the preceding year as governments relied more on the regional market for short and long term financing. M arkets MONEY AND CAPITAL MARKET DEVELOPMENT

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ECCB ANNUAL REPORT 2014/2015