(ZIZ)– In his capacity as Governor of the Eastern Caribbean Central Bank [ECCB], the Honourable Sir K. Dwight Venner, on Thursday, presented the 2013-2014 Annual Eastern Caribbean Central Bank Report.
The report reviewed the performance of the ECCB for the 2013-2014 financial year and informed citizens of the Eastern Caribbean Currency Union (ECCU) about the policies, programmes and activities the bank undertook and facilitated in the reporting year.
Governor Venner reported that monetary stability was sustained in the ECCU member countries over the financial year and the Eastern Caribbean Currency is doing well as it remains backed by foreign reserves.
“The prevailing economic circumstances did not compromise the domestic currency which remains adequately backed with foreign reserves. At the end of the financial year, the foreign reserve backing of the currency was 95.68 percent, significantly above the statutory limit of 60 percent and the prudential norm of 80 percent,” Governor Venner said adding that “Growth in the monetary aggregates was evident with liquidity in the commercial banking sector remaining high as total deposits rose at a faster rate than was recorded in the previous financial year.”
The Governor further explained that the bank’s main source of income is derived from the returns of the bank’s foreign reserve assets and therefore the deterioration in the bank’s performance was due to the low interest rates and volatility in the international markets.
“With respect to the bank’s financial performance, as at 21st March 2014, the bank’s total assets stood at $3.9 billion, an increase of $188.6 million or 5 percent when compared to the position last year. Notwithstanding, the bank reported a net loss of $17.97 million compared to a profit of 4.8 percent in the previous year.”
According to Governor Venner, the bank will continue to do all in its power to fulfil its mandate to preserve a stable currency and banking system.