The Eastern Caribbean Central Bank (the Bank) is one of four multi-state central banks in the world and serves eight countries in the Eastern Caribbean Currency Union (ECCU).1 The Bank recognises that corporate governance is critical to achieving its mandate, and maintaining its credibility and image as a model regional and international institution. This Charter summarises the corporate governance policies and practices of the Bank.
The Bank’s corporate governance framework reflects current best practices, and incorporates the requirements of the Eastern Caribbean Central Bank Agreement Act, 1983 (the Agreement) and takes cognizance of the Corporate Governance Principles for the Organisation of Eastern Caribbean States (OECS). It takes into account the legal and regulatory framework of the ECCU member countries and is updated to keep abreast of changes in local and international practices.
"Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimised."2 It may be viewed as the set of processes, customs, policies and institutions affecting the way an organisation is directed, administered and controlled.
Corporate governance at the Bank is aimed at encouraging innovation through critical thinking and development through problem solving, in order to meet the Bank’s objectives and to provide accountability and control systems commensurate with the risks involved. The Bank’s corporate governance framework is set by the Agreement, which provides for a Monetary Council (the highest decision-making body) and a Board of Directors (the Board). Also incorporated in this framework are three management committees created by the Governor: Executive Committee; Heads of Department Committee; Management Committee (see Figure 1). These committees are essential for the implementation of policies of the Board, and the conveyance and exemplification of its core values.