The Eastern Caribbean Central Bank (ECCB) was established on October 1, 1983 by agreement signed on July 5, 1983 by the seven Governments of Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. Anguilla became a member of the Bank with effect from April 1, 1987. The Central Bank replaces the East Caribbean Currency Authority (ECCA), acquiring all of the assets and liabilities together with all rights and obligations of the Authority as of the date of establishment of the Bank. The purposes of the Bank, as stated in its Articles of Agreement, are: (1) to regulate the availability of money and credit; (2) to promote and maintain monetary stability; (3) to promote credit and exchange conditions and a sound financial structure conducive to the balanced growth and development of the economies of the territories of the participating Governments; and (4) to actively promote, through means consistent with its other objectives, the economic development of the territories of the participating Governments.

While the Central Bank, like the former Currency Authority, is obliged to maintain a foreign exchange reserve of external assets equivalent to not less than 60 percent of the value of its notes and coins in circulation and other demand liabilities, the Bank's scope for the exercise of monetary policy has been widened in comparison with the Currency Authority's limited regulatory powers. The Central Bank is also empowered to impose reserve requirements on commercial banks and to set minimum and maximum interest rates for deposit liabilities and loans.

The Central Bank, in conjunction with private sector financial institutions, established the Eastern Caribbean Home Mortgage Bank (ECHMB) in September 1994, the Eastern Caribbean Institute of Bankers (ECIB) on July 7, 1996 and has established an Eastern Caribbean Securities Exchange in October 2001. The ECCB has also facilitated the establishment of the Regional Government Securities Market in November 2002.

On May 17, 1984, the ECCB was prescribed by the IMF as a holder of SDRs, and thus authorized to acquire and use SDRs in operations and transactions with participants in the IMF's SDR Department and other holders under the same terms and conditions as participants.

COMPOSITION

8 members: Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines

STRUCTURE

The Bank consists of a Monetary Council and a Board of Directors. The Monetary Council, the chief decision making body, comprises one Minister appointed by each participating Government, and an alternate designated by the Minister to serve on the Council in his absence. The Council elects one of the Ministers to serve as Chairman for a period of one year. The Board of Directors is responsible for the policy and general administration of the Bank. It consists of ten Directors comprising the Governor, the Deputy Governor, and one Director appointed by each participating Government.

GENERAL PUBLICATIONS