Statement by Incoming Chairman of the ECCB Monetary Council Hon Keith Mitchell
The New Chairman of ECCB Monetary Council and Grenada PM Hon Keith Mitchell has called for dealing with de-risking issues with correspondent banks, adopting common standards for CIP and banks using blockchain technology.
Grenada is the first country in the ECCU to adopt fiscal responsibility legislation and establish an independent fiscal responsibility oversight committee. Therefore, we fully support this call.
Grenada has been able to reduce its debt to GDP ratio from a high of 108 percent in 2013 to 69 percent at the end of 2017. Grenada is now on track to attain the Monetary Council’s target of 60 percent by 2020. This puts us well ahead of the 2030 timeline and ladies and gentlemen, we owe it all to the tough but necessary decisions we have taken over the past five years.
It is equally pleasing to note, that Grenada’s economy recorded average growth of 5.8 percent over the same period of this fiscal turnaround. Grenada stands ready to share its experiences with member countries, because brothers and sisters, we can and must learn from each other.
Dealing with the Threat of De-risking
The potential loss of correspondent banking relations continues to pose a serious threat and we must remain vigilant and relentless in our efforts to combat this existential threat.
In July 2016, our Monetary Council took the important decision to have the ECCB assume responsibility for Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) supervision of entities licensed under the Banking Act. Our banks as well as the international community including correspondent banks, the Caribbean Financial Action Task Force (CFATF) and the IMF, have welcomed this decision.
We applaud the bank’s efforts over the past 18 months to build its capacity in this new area of responsibility. Furthermore, we urge countries that have not yet passed the amendments to facilitate this decision to do so in the shortest possible time.
Equally important are the steps being taken to adopt common standards for countries with Citizenship by Investment Programmes. These efforts ought to be intensified given the importance of these programmes for economic development and financial stability.
Addressing Bank Fees and Charges
Brothers and sisters, the matter of high bank fees and charges is one that concerns our citizens and in fact, all members of the Monetary Council. That said, we also understand that banks are facing rising compliance costs because of various international requirements for Anti-Money Laundering and Combating Financing of Terrorism.
We call on all banks and the ECCU Bankers Association to become more proactive in informing customers of these developments and helping them access no-cost or low- cost options, wherever possible.
FinTech Regulation and Supervision
As the Lead Prime Minister in CARICOM for Science and Technology, I am very cognizant of the role of technology in economic transformation. I applaud the stance of the bank to explore opportunities in respect of blockchain technology. I also look forward to recommendations for collective action to support the expansion of Financial Technology (FinTech) in the ECCU, of course with the appropriate regulatory and supervisory frameworks.
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