The Bank recognises that a safe, reliable and efficient payment system is central to the stability of the financial system. Therefore, the Bank seeks to provide payment system oversight and regulations in order to develop effective, efficient, reliable, accessible and secure payment systems that serve the needs of the ECCU and support a competitive private sector environment.
In 2009, the Bank successfully upgraded its Real Time Gross Settlement System with the implementation of Straight Through Processing (STP), a key component of the payment system improvement project. The upgraded system allows for the electronic capturing and processing of financial transactions from the point of initiation to final settlement, thus resulting in faster and more efficient transaction processing and settlement. In collaboration with the Eastern Caribbean Bankers Association and the Eastern Caribbean Payments Council, harmonised SWIFT messaging standards were developed and implemented, thus ensuring compliance with international standards.
The Bank also partnered with the stakeholders of the financial system as part of its goal to modernise the payments system and realise a single financial space. During the year, the Bank trained the member governments and upgraded the payment services offered to enable automated access to the Large Value Payment System. Through SWIFT alliance Lite, member governments can submit local payment requests which will be automatically processed through the Central Bank’s Banking Application.
The Bank will continue its payments system improvement initiative in the following areas:
- Working with the legal apparatus in member countries to ensure the passage of laws to strengthen the legal framework for the payments system. This would include regulations for the Large Value Funds Transfer System.
- Collaborate with the Payments Council to guide the development of the Retail Payments System including the concluding phase of the development of an Automated Clearing House (ACH).
- Implement measures to manage risk in the clearing house.
- Implement Delivery versus Payment (DVP) procedures in the Securities market.
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