BASSETERRE, St Kitts, Feb 15, CMC – The Eastern Caribbean Central Bank (ECCB) Monetary Council has agreed to maintain the minimum savings rate at 2 per cent.
The disclosure came in a communique issued Friday at the end of the one-day 110th Meeting of the ECCB Monetary Council.
“Having considered the state of monetary, credit and financial conditions in the ECCU [the Eastern Caribbean Currency Union], the Monetary Council, on the recommendation of the Governor, [also] agreed to maintain the discount rate at 3.0 per cent for short-term credit and 4.5 per cent for long-term credit,” it added. “The minimum savings rate is the lowest rate that commercial banks can offer on savings deposits. The Central Bank’s discount rate is the rate at which the ECCB lends to governments and commercial banks.”
The Monetary Council, which is comprised of Ministers of Finance from eight Eastern Caribbean countries, was advised that commercial banks in the ECCU financial sector are generally well-capitalised.
“Deposits continue to grow, including from businesses, the ECCU banking system remains stable with a high degree of liquidity (estimated at EC$1.5 billion at the end of December 2024), credit conditions have eased and competition is intense thereby creating a favourable environment for borrowing, particularly for mortgages,” the communique stated.
It was also disclosed that credit bureau operator EveryData ECCU Ltd has signed agreements with 27 of the 32 (84 per cent) licensed financial institutions (LFIs) under the Banking Act in the ECCU.
Eleven have already gone live and others are expected to follow in the upcoming months. Nineteen of 47 (40 per cent) of credit unions signed agreements. Public education is ongoing throughout the region.
The Monetary Council noted the contents of the Financial Stability Report 2023 (Part 2) and approved its publication. The report indicated that key risks to financial stability include cyber and climate.
“In support of financial stability, efforts at addressing risks include lowering credit risk by enhancing credit underwriting with the commencement of the credit bureau and lowering the risk profile of CBI/CIP programmes. The Interim Regulatory Commission (IRC) has selected Lydia Elliott, Legal Drafting Consultant, to draft uniform legislation that would enable the establishment of a Regional Regulator for CIP/CBI in the ECCU,” it said.
“Stakeholders from Government, the CIP/CBI industry and social partners will be invited to share their views on the establishment of the Regional CBI/CIP Regulator in a series of in-country consultations commencing in March 2025.”
The one-day meeting attended by Ministers of Finance from Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia and St. Vincent and the Grenadines.
CMC/ed/2025