EASTERN CARIBBEAN
CENTRAL BANK
The Eastern Caribbean Central Bank was established and
is governed by an Agreement between eight (8) nation states
made on the 5th July, 1983. The Participating Governments
are, Anguilla, Antigua and Barbuda, Dominica, Grenada,
Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent
and the Grenadines. 
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ADMINISTRATIVE AND DECISION-MAKING
FRAMEWORK
PART IV of the Eastern Caribbean Central Bank Agreement
(1983) sets out the provisions for the Administration
and Management of the Bank.
The Administration and Management arrangements which
facilitate the functioning of the Bank can be placed
under three (3) specific headings.
• Governance
• Consultation
• Networking
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MONETARY COUNCIL
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Article
7 (i) provides for the establishment
of a Monetary Council consisting of one Minister
appointed by each participating Government.
The Council is the highest decision-making
body in the institution to which the management
of the Bank is ultimately responsible.
Article 7(2) establishes
that the Council shall meet not less than twice
each year to receive from the Governor the Bank’s
report on monetary and credit conditions and to
provide directives and guidelines on matters of
monetary and credit policy.
The Council has agreed to meet
three times for the year in January/February,
July and October.
The Council’s specific decision-making
functions are outlined as follows:
Article 17 (2)
- declaration of the external value of the currency,
Article 24 (3)
- the external reserve backing of the currency,
Article (33) -
the maintenance of required reserves, and
Article (34) -
interest rate and credit ceilings.
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BOARD OF DIRECTORS
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Article 8
(1) vests the powers of the Bank in a
Board of Directors which shall be responsible
for the policy and general administration of the
Bank.
Article 8 (3)
establishes the composition of the Board as the
Governor, Deputy Governor and one Director appointed
by each Participating Government.
Article 9 Sections 3, 4
and 5 provide for the appointment and
role of the Governor. The Governor is Chairman
of the Board and has responsibility for the implementation
of policy and the day-to-day management of the
Bank.
All major decisions must first
be approved by the Board before they are presented
to the Council.
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BOARD INVESTMENT
COMMITTEE
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Composition
Governor (Chairman)
Deputy Governor
Managing Director
All Board Members
In attendance: Director, Banking and Monetary
Operations Department (BMOD)
Deputy Director – Research,
Senior Director of Audit + 1 Audit Officer
Staff approved by the Governor
Reviews, approves and oversees
the implementation of recommendations on the management
of the Bank’s foreign asset reserves.
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POLICY SUB-COMMITTEE
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Composition
Governor (Chairman)
Deputy Governor
Managing Director
Board Members:
Director, Grenada
Director, St Lucia
Director, Antigua and Barbuda
Director, Dominica
In attendance: Adviser II, Strategic Planning
and Policy Department
Staff approved by the Governor
Deliberates on and provides guidance
to Management on the major policy issues: exchange
rate, money and credit and financial stability.
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BUDGET AND OPERATIONS SUB-COMMITTEE
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Composition
Governor (Chairman)
Deputy Governor
Managing Director
Board Members:
Director, Anguilla
Director, St Kitts and Nevis
Director, St Vincent and The Grenadines
Director, Montserrat
In attendance: Director, Accounting Department.
Staff approved by the Governor
Examines the Bank’s Budget and Variance
Reports and make recommendations to the Board
of Directors.
Reviews recommendations from Management
on policies of a financial and operational nature
for transmission to the Board of Directors for
approval.
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AUDIT SUB-COMMITTEE
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Composition
Mr Wendell Lawrence, Director, St Kitts and Nevis
(Chairman)
Mr Maurice Edwards, Director, St Vincent and the
Grenadines
Mr Vincent Placide, Director, Montserrat
Co-ordinator: Senior Director, Internal Audit
Department
In attendance: Staff approved by the Governor
Assist the Board of Directors in
carrying out their responsibilities as they relate
to the organisation’s accounting policies,
internal controls and financial reporting practices.
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PENSION FUND INVESTMENT
COMMITTEE
Composition
Deputy Governor (Chairman)
Governor
Board Representative: Director, St Kitts and Nevis
Staff Representatives (2)
In attendance: Staff from Human Resource, Banking and
Monetary Operations and Accounting Departments
• Authorises the investment
by the Bank of staff and superannuation funds in accordance
with the provisions of the Pension Fund Trust Deed
and Rules 1992.
• Reviews benefits being paid
or payable and makes recommendations to the Board of
Directors.
• Authorises the Investment
Guidelines and Practices for the management of the Staff
Pension Fund.
• Monitors the Pension Fund
Performance/Returns.
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PENSION FUND TRUSTEES
COMMITTEE
Composition
Governor (Chairman)
Board Members:
Director, Montserrat
Director, St Kitts and Nevis
Staff Trustees (2)
In attendance: Staff from Human Resource Department,
Banking and Monetary Operations and Accounting Departments
Ratifies decisions of the Pension Fund Investment Committee.
Administers the provisions of the Trust Deed and Rules
of the Pension Scheme.
Periodically reviews the Trust Deed and Rules.
Considers recommendations from the Actuaries.
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THE SENIOR MANAGEMENT COMMITTEE
Composition
The Governor
The Deputy Governor
The Managing Director
The Senior Adviser, Strategic Planning and Policy Department
The Senior Director, Bank Supervision Department
The Senior Director, Internal Audit Department
This committee deals with policy, operations and administration
matters requiring a decision at the highest level of
management. It also evaluates and manages institutional
risks and receives reports from the Internal Audit Department.
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GENERAL MANAGEMENT COMMITTEE
Composition
The Governor
Deputy Governor
Managing Director
Directors and Deputy Directors of Departments
Advisers
This committee meets weekly to consider reports on all
critical areas of the Bank’s operations including
Financial Reports, Currency Reports, a Report on Credit
and Market Conditions, and a Liquidity Report.
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TECHNICAL COMMITTEES
The four technical committees meet once per month to
take decisions which are then ratified by the General
Management Committee.
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INVESTMENT MANAGEMENT
COMMITTEE (IMC)
Composition
Governor
Deputy Governor
Managing Director
Directors and Deputy Directors of Departments
Advisers I and II
Staff of the Investment Unit of the Banking and Monetary
Operations Department:
- Give guidance and make recommendations to the Board
of Directors on fundamental and technical issues
arising from the management of the external reserves.
- Approve changes to investment mandates designed
and recommended by the Investment Unit that are
within the parameters laid out by the Board of Directors.
- Keep management informed of economic and financial
developments that affect the management and/or
performance of the external reserve portfolio.
- Provide a forum for discussion on the related
issues that affect the performance of the external
reserve portfolio over the past month.
- Keep management informed of the performance of the
external reserve portfolio.
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FINANCIAL INSTITUTIONS
REGULATIONS COMMITTEE (FIRC)
Composition
Governor
Deputy Governor
Managing Director
Directors and Deputy Directors of Departments
Advisers I and II
Staff of the Bank Supervision Department
o Reports on local, regional and international financial
developments.
o Makes policy recommendations on matters relating to
the financial system in the Currency Union.
o Makes recommendations on applications for banking
business licences.
o Reports on supervisory and regulatory issues from
on-site examinations and prudential meetings for formulating
policy decisions.
o Reports on problems identified with specific institutions
from early warning systems.
o Discusses proposed areas for strengthening the regulatory
and supervisory system of the ECCB area.
o Reviews reports on compliance with laws and regulation.
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ECONOMIC & MONETARY
POLICY COMMITTEE (EMPC)
Composition
Governor
Deputy Governor
Managing Director
Directors and Deputy Directors of Departments
Advisers I and II
o Keeps Management informed of money and credit as
well as economic conditions and prospects.
o Provides a forum for the discussion of research papers
on policy issues.
o Assists with the formulation of policy recommendations
in relation to money and credit, fiscal policy and structural
policies to foster economic development in member countries.
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OPERATIONS MANAGEMENT
COMMITTEE (OMC)
Composition
Governor
Deputy Governor
Managing Director
Directors and Deputy Directors of Departments
Advisers I and II
o Recommends administrative policies and procedures
to improve efficiency in the Bank’s operations.
o Discusses and resolves problems encountered in implementing
work programmes in the various departments.
o Improves co-ordination of work programme activities
across departments.
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Specialised Committees
(a) Financial Books Committee
Composition
Governor
Deputy Governor
Senior Director, Internal Audit Department
Directors of Accounting, Banking and Monetary Operations,
and Currency Management
This Committee meets weekly to discuss movements on
the Bank’s balance sheet, income statement and
external and domestic liquidity and issues arising therefrom.
(b) Monetary Policy Advisory Committee
Composition
The Governor
The Deputy Governor
The Senior Adviser, Strategic Planning and Policy Department
The Senior Directors, Internal Audit and Bank Supervision
Departments
The Policy Advisors
Directors of Research, Financial and Enterprise Development,
Banking and Monetary Operations, Currency Management,
and Corporate Relations Departments.
o Co-ordinates the policy issues and agendas for meetings
of the Board of Directors, Monetary Council and Statutory
and Networking Committees.
o Serves as a forum to discuss technical issues that
require urgent decisions.
(c) Other Management Committees
Other committees meet regularly to deal with such matters
as Business
Continuity, Security and Training.
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ORGANISATIONAL
STRUCTURE OF THE BANK
The organisational structure of the Bank has three
dimensions.
(i) The Governor’s Office,
the Internal Audit Department and the Strategic Planning
and Policy Department
which report directly to the Governor.
(ii) The Policy and Operations Departments
which report to the Deputy Governor.
These are:
• Research Department
• Bank Supervision Department
• Financial and Enterprise Development
Department
• Banking and Monetary Operations
Department
• Currency Management Department
(iii) The Administration Departments which report to
the Managing Director.
These are:
• Corporate Relations Department
• Human Resource Department
• Accounting Department
• Management Information Systems
Department
• Support Services Management
Department.
The Bank also has Agency Offices in each member country
outside of its Headquarters.
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CONSULTATION
Consultation refers to the interaction of the Central
Bank with the Ministries of Finance, the Commercial
Banks and the Private Sector. Given the multinational
character of the Bank’s arrangements, these interfaces
establish a framework for ensuring the effective coordination
of the Bank’s activities throughout the Currency
Union.
Financial
Secretaries
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To co-ordinate the operational
aspects of the Eastern Caribbean Currency Union |
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To provide feedback
on the implementation of operational issues. |
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To serve
as the forum for co-ordinating regional projects
like the Eastern Caribbean Economic |
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Management
Programme (ECEMP) and the Structural
Adjustment Technical Assistance Programme (SATAP) |
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To exchange views and
information on economic management in the ECCU member
countries. |
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Regional Debt Coordinating Committee
(RDCC)
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To facilitate the continued
development of the Regional Government Securities
Market (RGSM) |
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To monitor the operations
of the RGSM and regulate the conduct of market participants
to promote the efficient functioning of the market. |
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To monitor and review
member governments’ overall debt positions
and advise governments on effective debt management
strategies. |
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Debt Sub-committee
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To provide technical
advice to the RDCC on matters pertaining to debt
management. |
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Banking Committee
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To discuss policy and operational issues related
to developments within
the financial sector. |
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Private Sector Consultative Group (PSCG)
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To provide a forum to discuss the policy mix required
for the efficient and sustainable development of
the ECCB member states. |
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To allow for input of
the private sector on the main policy issues through
dialogue on: |
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The role of the private
sector in the development of the economies. |
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Issues affecting the
private sector in relation to monetary and credit
policy. |
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Measures necessary to
promote growth and development. |
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Issues relating to the
maintenance of the stability of the exchange rate,
including wages, prices, productivity and competitiveness. |
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Attorneys
General
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To provide a forum to discuss legislative and regulatory
issues which impact on the financial and economic
development of ECCB member states. |
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To facilitate the speedy
passage of financial legislation in member states. |
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Heads
of ECCU Policy Units
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To discuss issues related to the development and
implementation of policy at the national |
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level and their consistency
with the monetary policy objectives. (The current
focus is on the Structural Adjustment Technical
Assistance Programme (SATAP) and the Fiscal Reform
Programme). |
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Financial Sector Regulators
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To discuss efforts geared towards the provision
of a comprehensive oversight and regulatory framework
for the enhancement of the ECCU financial sector. |
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NETWORKING
Networking refers to the wide range of relationships
which the Bank has at the Currency Union level, the
regional level, and the international level.
The discussions at the meetings are hinged on the Bank’s
monetary policy focus delineated as follows:
· The Exchange Rate
· Money and Credit
· Financial Sector Stability
· Money and Capital Market
· Development.
Accountants
General
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To develop programmes and systems for improving
the operations of the Accountants General Departments. |
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To co-ordinate technical
assistance, training programmes and regional projects
that will improve the operational efficiency of
the Accountant General’s Department. |
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To develop a regional
network of Accountants General |
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Directors of Budget
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To develop programmes and systems for improving
the operation of the Public Sector |
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To co-ordinate technical
assistance, training programmes and regional projects
related to the budgetary system. |
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To develop a regional
network of Directors of Budgets. |
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Directors
of Audit
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To discuss issues related to the transparency; and
the accountability of ECCU governments fiscal operations. |
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Comptrollers of Inland Revenue and
Comptrollers of Customs
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To develop programmes and systems for improving
the operations of the Inland Revenue and Customs
Departments. |
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To co-ordinate technical
assistance, training programmes and regional projects
that will improve the operational efficiency of
the Inland Revenue and Customs Departments. |
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To develop a regional
network of Comptrollers of Inland Revenue and Customs. |
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Directors
of Planning and Statistics
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To enhance the coordination efforts of the Planning
and Statistical Departments, particularly to |
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strengthen the statistical
capacity, and develop strategies for the preparation
of the Medium Term Economic Strategy Paper (MTESP)
and the Public Sector Investment Programme (PSIP). |
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Development Banks
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To provide a forum for discussion that assists the
Development Bank in its role as funder of viable
productive enterprise projects in the local community. |
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To assist in the clarification
of the role and structure of the Development Bank
in the globalised environment. |
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Social Security Systems
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To provide a forum in an effort to develop strategies
to enhance the long-term viability of the Social Security Systems. |
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To foster national and
regional debates on Social Security Reform. |
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