Eastern Caribbean Central Bank Advances Second Phase of Publication of Prudential Sta...

4 March 2026, Basseterre, Saint Christopher (St Kitts) and Nevis - The Eastern Caribbean Central Bank (ECCB) has officially commenced the second phase of gazetting Prudential Standards in its member countries.

Prudential Standards aim to enhance the resilience of the financial sector by ensuring that licensed financial institutions (LFIs) operate with the highest levels of transparency, safety, and soundness.

Among other benefits, Prudential Standards help LFIs to improve their operational efficiencies by requiring them to have robust internal controls to provide more reliable services. More importantly, Prudential Standards help to keep LFIs regulated tightly to protect depositors' funds, thereby boosting public confidence in the financial sector.

The Prudential Standards being gazetted are:

1. The Prudential Standard for Capital Measurement: This was issued on 11 July 2023, and establishes the minimum regulatory capital that commercial banks must maintain for credit, operational and market risks. Moreover, it transitions the Eastern Caribbean Currency Union's banking sector to a more risk-sensitive approach to measuring solvency.
2. The Prudential Standard for Basel I Capital Measurement for Credit Institutions Licensed Under the Banking Act, 2015: This was issued on 2 February 2026, and defines the minimum capital requirements for credit institutions, utilising the Basel I framework. It is designed to ensure that credit institutions maintain a stable cushion of capital to absorb potential losses, specifically focusing on credit risk.

The gazetting of the Prudential Standards is in alignment with the Banking (Amendment) Bill 2024, which provides the necessary legislative framework to accord Prudential Standards the full force of law.

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About the Eastern Caribbean Central Bank
The Eastern Caribbean Central Bank (ECCB) was established in October 1983. The ECCB is the Monetary Authority for: Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, Saint Christopher (St Kitts) and Nevis, Saint Lucia and Saint Vincent and the Grenadines.

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