PRESS RELEASE – The Caribbean Association of Banks (CAB) commends the Eastern Caribbean Currency Union’s (ECCU) Monetary Council for approving the Harmonized Credit Reporting Bill and Regulations for the OECS Region, at its 87th Meeting of the ECCU Monetary Council on 2nd March, 2017.
The CAB views the approval of this bill as a step in the right direction to facilitate the establishment of credit bureau services in the OECS. The CAB is pleased to note that the Council has set a deadline of September 2017, for enactment of this bill in the respective territories.
In some territories, the current Foreclosure Legislation has created some additional difficulties for Banks in reducing their non-productive loan portfolios, thus increasing their associated credit risks.
The inability of a Bank to liquidate bad loans impacts its profitability, Government’s revenue and restricts lending to the productive sectors of the economy which are necessary to stimulate growth.
Early enactment of legislation which has been agreed by all member states, is critical to the effective functioning of the banking sector and we encourage Governments to expedite the process of enacting Harmonized Foreclosure Legislation within the ECCU.