On 10 September 2024, the Bankers Association of Saint Lucia, led by its President, Mr Samuel Agiste, held a productive meeting with the Governor of the Eastern Caribbean Central Bank (ECCB), Mr Timothy Antoine and his team, as part of the ECCB Governor’s outreach efforts. The meeting focused on several key issues impacting the banking sector and the broader economy of Saint Lucia.
Bold Transformation of the Saint Lucian Economy
The Governor highlighted his vision of a bold transformation of the Saint Lucian economy, the largest in the Eastern Caribbean Currency Union, to be driven partly by the development of a pro-worker national Artificial Intelligence (AI) strategy aimed at enhancing productivity and fostering innovation. The Bankers Association expressed its support for these initiatives, recognising their potential to drive economic growth and improve the quality of life for all Saint Lucians. The Association also expressed concern over the ability of the country to achieve its projected 4% growth for 2024 given that numerous projects, which should contribute to this rate, may not be realised during the year.
Citizenship by Investment Programme
The Citizenship by Investment Programme (CIP) was another critical topic of discussion. The Governor outlined the ECCB’s role in advocating for the integrity and sustainability of these programmes, including the appointment of a separate regional regulator for the CIP. The Bankers Association acknowledged the importance of this programme in attracting foreign investment and emphasised the need for robust oversight to maintain its credibility.
New Legislation
The meeting also covered new legislation affecting the banking sector. The Governor listed recent legislative changes (approved and pending) and encouraged the Bankers to engage the Government of Saint Lucia and key stakeholders to secure timely passage, particularly the Banking (Amendments) Bill. The Bankers Association welcomed these updates and reiterated its commitment to collaborate with regulatory authorities.
Strength of the Eastern Caribbean Dollar and High Backing Ratio
The strength of the Eastern Caribbean dollar (EC$) and its high backing ratio of 98.6% were highlighted as significant achievements. The Governor assured the delegation of the ECCB’s continued efforts to maintain the stability and strength of the EC dollar, which is crucial for economic confidence and stability in the region.
Improving the Ease of Account Opening
The need to improve the ease of account opening was a key concern raised by the Governor, especially for unbanked individuals. He indicated that, in his many discussions with various stakeholders, prior to meeting with the Bankers, this issue had been prominently featured. The Bankers acknowledged this and also disclosed that most financial institutions have now eased the requirement and are accepting one piece of identification. The Governor encouraged the Bankers to do more public education and customer engagements on this topical issue and other developments affecting customers.
Partial Credit Guarantee Programme
The Bankers were informed that 30 loans valued at $5.3 million have been guaranteed in Saint Lucia under the Eastern Caribbean Partial Credit Guarantee Programme (ECPCG). The Governor encouraged greater and faster utilisation of this programme for the benefit of Saint Lucians. The ECPCG guarantee is an arrangement between the financial institutions in the region, their borrowers and the Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC), whereby some of the loan security is provided by ECPCGC to the banks to help secure the loans granted to Micro, Small and Medium Entrepreneurs (MSMEs).
Implementation of the Credit Bureau
Finally, the implementation of the Credit Bureau was discussed as a vital step towards enhancing credit reporting and financial transparency. The Governor provided an update on the progress of this initiative, and the Bankers Association expressed its support for the Credit Bureau’s role in improving access to credit and financial inclusion. The Bankers Association of Saint Lucia remains committed to working closely with the ECCB and other stakeholders to address these issues and promote a robust and resilient banking sector. We look forward to continued collaboration and dialogue to achieve our shared goals.