What is the main function of the Bank Supervision Department?
Can the ECCB issue and revoke the licences of banks and finance companies under the Banking Act?
Which institutions are supervised by the ECCB?
How does the ECCB supervise licensed financial institutions?
What approach is used to assess financial institutions?
What are the areas considered?
What steps are taken to correct deficiencies identified at institutions examined?
Does the ECCB Supervise Offshore Banks?


What is the main function of the Bank Supervision Department?
The Bank Supervision Department carries out the supervisory function of the ECCB.   top ^

Can the ECCB issue and revoke the licences of banks and finance companies under the Banking Act?
No. Licences are issued and revoked by the Minister of Finance in each member country on recommendation of the ECCB.   top ^

Which institutions are supervised by the ECCB?
All commercial banks and finance companies licensed under the Banking Act as well as offshore banks in Nevis. The ECCB, along with the local supervisory authority, also supervises offshore banks in Dominica and St Vincent and The Grenadines.   top ^

How does the ECCB supervise licensed financial institutions?
Institutions are supervised by a combination of off-site surveillance and on-site examinations.
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What approach is used to assess financial institutions?
A risk–based assessment method is used, whereby the areas of risk are identified prior to visiting the institution and resources are concentrated on the institution’s highest risk areas.   top ^

What are the areas considered?
Credit risk, operational risk, liquidity risk, market risk, legal and reputational risk.   top ^

What steps are taken to correct deficiencies identified at institutions examined?
These institutions are issued with either a Memorandum of Understanding (MOU) or a Letter of Commitment (LOC), based on the severity of the deficiencies. Timeframes are agreed to for addressing deficiencies identified.   top ^

Does the ECCB Supervise Offshore Banks?
By amendment to the Nevis Offshore Banking Act, the ECCB was named as the sole supervisor of offshore banks in Nevis. The offshore banking Acts in Dominica and St Vincent and the Grenadines were amended to give the ECCB joint responsibility for supervising offshore banks with the local supervisory authorities.   top ^