ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

ACTIVITIES IN THE YEAR AHEAD

Financial Information Month (FIM) activities and should not be redeemed once issued.

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 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:

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ECCB ANNUAL REPORT 2014/2015