Banking Act

The Banking Act 2015 was drafted within the context of developing of a single banking space in the ECCU.  The ECCB is the licensing authority for the banking sector and a single licence authorises a financial institution to operate in the space on a branch basis subject to approval of location of new business premises.  In addition, the Banking Act:

• strengthened the penalties under the Act to make them more prohibitive and introduced administrative penalties for contraventions of provisions in an effort to improve enforcement by the Central Bank;
• improved the corporate governance framework by expanding the fit and proper criteria to render their applicability to all directors, officers and significant shareholders and allowing for the resultant suspension or removal from office of directors and officers who do not meet the fit and proper criteria;
• increased the minimum paid-up or assigned capital of a financial institution;
• introduced a framework for the licensing and regulation of financial holding companies;
• strengthened the remedial action tools and adopted mechanisms that would allow for the resolution of troubled banks at least cost.

The table below illustrates the number, year and commencement date of the Banking Act in each member territory.

Banking Act in ECCB Member Countries