BASSETERRE, St. Kitts - THE Eastern Caribbean Central Bank (ECCB) reported yesterday (June 27) that it holds $3.3 billion in assets as at March 2012.
Governor of ECCB, Hon. Sir K. Dwight Venner, made this announcement while presenting to the Eastern Caribbean Currency Union (ECCU) the 2011/2012 ECCB Annual Report.
"As at March 2012, the total assets of the Bank stood at $3.3 billion as compared with $2.8 billion for the previous year," Venner reported.
He explained that the increase was mainly due to the inflow of grants and loans to member governments from international institutions.
"Also contributing to this increase was the reinvestment of income on foreign assets and gains on the sale of foreign securities held within the ECCB's foreign reserve portfolio."
The Governor also reported that the bank only grasped a net income of $11.7M as compared to the previous year's income of $22.6M.
"Contributing to this was a reduction in commission income on foreign transactions and lower gains on the sale of securities," he explained.
Venner had described the year, which ran from April 1, 2011 to March 31, 2012, as a challenging one which stemmed from the continued global crisis affecting "the economic and financial systems of our member countries".
This, he said, led to a higher level of non-performing loans in the commercial banking system, a fall in the level of bank earnings, increased provisioning for bad loans and some impairment of capital.
However the ECCB looks forward.
Venner said that the 2012-2013 financial year will be equally challenging as the global environment has not markedly improved.
He explained that the circumstances in Europe and the sluggish recovery in the United States has had an effect on the growth of the Chinese economy and by extension on those countries which have grown by exporting commodities to China.
"Another significant dip in global growth will have serious repercussions on the currency union," the Governor said.
He said that one of the keys to the stabilization and growth of the ECCU economies would be the arrangements and their successful implementation of the new economic union.
"The lowering of unit costs of operations in the public and private sectors and the coordination of policies, programmes, and projects across the single financial and economic space are vital to improvements in the productivity and competitiveness of our economies."
The Governor explained that the Bank has set itself a very focused programme, much of which is a carry-over from the last financial year involving a more intense concentration on financial stability, fiscal/debt sustainability, the development of money and capital markets and the acceleration of the growth process which is the main factor in its path to long term development.
"We look forward to working with all the organs and institutions of the OECS and the people of the region in achieving a higher standard of living and quality of life for our people," Venner ended.
