Several amendments were made to the Banking Act of St. Kitts and Nevis to allow for even greater transparency and accountability within the banking sector. The Banking (Amendment) Bill 2023 was passed during the April 4 sitting of the National Assembly.
The Amendments clarify the fit and proper criteria for members who sit on Boards and allows licensed financial institutions to disclose confidential information, where necessary, in the conduct of due diligence in relation to a potential transaction. The amending of the Act was deemed a requirement to bolster St. Kitts and Nevis’ financial sector and it was advocated for by Governor Timothy Antoine and his team at the Eastern Caribbean Central Bank (ECCB).
Prime Minister Dr. Terrance Drew moved the Bill, citing that it would provide leeway for the ECCB to continue as a reputable and leading financial institution.
“This amendment will be particularly helpful to the Eastern Caribbean Asset Management Corporation. The proposed amendment would be the legal authority for a licensed financial institution to disclose confidential information to the ECAMC. The spirit is not to disclose anybody’s information to whoever wants that information but that the relevant persons can ask for the information so that the banks can do the checks and make sure that the banks are not exposed, or any financial institution is not so unduly exposed,” Prime Minister Drew informed.
“Section 186 of the Banking Act is being amended to provide for one, the establishment of a bridge bank for an initial period of twelve months with the possibility of extension by the ECCB for up to four years. Two, specific circumstances under which bridge banks status may be automatically terminated, that is by a fluxion of time, sale to or amalgamation with another institution or satisfaction of the capital requirements. Madame Speaker, this type of transformation we are talking about with the bridge bank is where the ECCB wants to go and we in St. Kitts and Nevis cannot be holding back this very prestigious institution,” The Prime Minister.
The ECCB continues to ensure that the Eastern Caribbean dollar remains strong and protected.
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