ECCU remains strong in face of global financial meltdown

By VonDez Phipps
Reporter-SKNVibes.com

BASSETERRE, St. Kitts – IN response to questions raised by the general public and other concerned parties about the impact of the global financial and economic crises on the banking system in the Eastern Caribbean Currency Union (ECCU), the ECCU Bankers Association has declared that the region has maintained a stable financial status.

In a recent press statement, CEO Michael Archibald, on behalf of the ECCU Bankers Association assured the public that the system is “strong and not under any stress” as a result of the international financial turmoil. He noted that while there will be some impact on the region, it is expected to be limited and manageable. Archibald said the Association’s confidence stems from the fact that the Eastern Caribbean Central Bank (ECCB) has an “excellent reputation that was hard earned” and continues to ensure that the banking system in the ECCU is well regulated and under constant supervision.

“The Central Bank did not join the trend towards deregulation that was seen in other countries, which was cited as one of the contributing factors to the financial turmoil affecting those countries. The ECCU banks had no direct exposure to any of the ‘toxic products or assets’ that contributed to the meltdown in the US financial system.  ~~Adz:Right~~

“The conservatism for which the bankers in the ECCU have been so often criticized has been shown to have served us in good stead and our organization is committed to ensuring the safety and soundness of the financial system.

“It is expected that banks in the ECCU Financial System will undertake complete reviews of their credit and underwriting policies and practices to ensure that there has been no relaxation or slippage and to ensure that they are being properly followed. Members are expected to also review their existing portfolios to ensure portfolio quality. Those actions will properly prepare the banks for any deterioration in quality of their assets that might occur as a result of slow-down in key sectors such as tourism, foreign remittances, and foreign direct investment.”

Archibald referenced the old West Indian adage “When your neighbor’s house is on fire wet your own”, and encouraged ECCU member states to remain vigilant in monitoring further developments as it is not yet clear what the full extent of the impact of the financial crisis will be.

He informed that in addition to the ongoing dialogue with the ECCB on matters relating to the banking system in the ECCU, the Association will be increasing discussions with governments and relevant regional and international bodies to embark on a number of initiatives promoting public understanding of banking and financial services within the ECCU region.