All commercial banks and other institutions deemed to be carrying on banking business are required to be licenced under the Banking Act and are regulated by the ECCB. As part of the ongoing supervision, licenced financial institutions are required to submit monthly, quarterly and annual returns to the ECCB. These returns provide essential information to assess the performance of the institutions and the financial system, and to inform policy decisions. In addition, periodic visits are made to the institutions to verify the information submitted, assess the risks faced by the banks and to monitor the business conditions and asset quality of the individual institutions.
The international financial services sector is governed by the Offshore Banking Acts in the respective countries and is primarily the responsibility of the national regulators.
The ECCB provides support and actively monitors developments, primarily in the credit unions and insurance sectors. These sectors are supervised by the relevant government authorities and single regulatory units established within the territories.
Overall, the regulation and supervision of the financial sector in the ECCU is being enhanced with the ultimate objective being the establishment of harmonised laws that are consistent with international best practices and a regulatory and supervisory unit for financial services in each member state.
Local Licenced Financial Institutions
Licenced financial institutions that are incorporated under the laws of a member country or territory of the ECCU. These maybe either locally owned or a foreign-owned subsidiary.
Foreign Financial Institution
Licenced financial institution that is incorporated under the laws of a country outside of the ECCU.
Licenced Financial Holding Company
A holding company of a licenced financial institution licenced under the Banking Act.