The ECCB is authorized to use a range of monetary policy instruments under the 1983 agreement. In particular, discount and rediscount interest rates, as well as differences in interest rates and caps for different transactions, are provided for under the interest rate policy. In line with the thinking carried out in developing countries at the time of its creation, the eccb agreement also provides for the allocation of credits to priority sectors, in cooperation with member state governments, as well as requirements for different reserve requirements, including reserve limits required by type of deposit. 5.3.1 Customers who accept a product or service for the first time must disclose all relevant terms and conditions of the requested product or service. The customer should be required to sign at least one document that comprehensively outlines all the terms and conditions for the product or service of their choice, in accordance with the acceptance or acceptance of these Terms and Conditions. These terms and conditions should be written in plain language with the use of legal or technical language only when necessary. The regulation and supervision of banks is partly carried out jointly by the ECCB and the ministries of finance. The legal authority to regulate licensed banks and financial institutions stems from the ECCB Agreement Act 1983 and the Bank Act 1991. The eccb agreement was amended in 1996 to give the ECCB the power to take control of the banks.
On the recommendation of the Monetary Council, the ECCB may take over the management of a bank and liquidate or restructure the establishment for sale. The legal instruments therefore include the approval of banks in the various finance ministers; Supervisory powers are vested in the CECB; and the resolution of bank failures is carried out by the ECCB, under the direction of the Monetary Council, under the direction of the potential budgetary impact of these operations. This system could lead to a breakdown in coordination, which has so far been averted by regular meetings of the Monetary Council and other stakeholders. As the supreme decision-making body of the ECCB, the Monetary Council, which sets out general policy guidelines, is composed of the Minister of Finance of each participating government.4 It is responsible for providing the Bank`s monetary and credit policy guidelines and guidelines, in accordance with Article 7, paragraph 2, of the Eastern Caribbean Central Bank Agreement Act 1983. The Council is responsible for meeting at least twice a year, but in practice it meets at least three times a year to obtain the Governor`s report on the terms of money and credit and to provide policy directions and directions. The Governor and the Deputy Governor are appointed by the Monetary Council for a five-year term. Faced with the challenges of the 2008/2009 global economic crisis, the Monetary Council stepped up its activities and met in a series of extraordinary meetings. The Banking Supervision Division was established in 1983 to monitor compliance with the requirements of the ECCB Act. The department conducts on-site audits of commercial banks and other financial institutions approved under the Uniform Banking Act (Table 15.4).
It also provides general supervision and oversees the activities of all financial institutions, including those not accredited by the Universal Banking Act, to ensure the stability of the financial sector. The department provided technical assistance for the regulation of the securities market at the beginning of the market and is the secretariat of the Eastern Securities Commission (ECSRC). The division also works closely with the national regulatory authorities of the Member States on the regulation of offshore banks and other financial institutions and provides these agencies with technical assistance in capacity building.