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St. Kitts and Nevis Passes Amendments to Banking Act to Strengthen Financial Sector

Basse Terre, St. Kitts - The National Assembly of St. Kitts and Nevis has passed several amendments to the Banking Act, aimed at bringing the country’s financial system up to date and further strengthening and protecting the sector.

Legislation Critical for Resilient Financial Sector

The Banking (Amendment) Bill, 2023 was moved through its readings by Prime Minister and Minister of Finance, Dr. Terrance Drew. The legislation is deemed critical for a resilient and robust financial sector, as emphasized by Governor of the Eastern Caribbean Central Bank (ECCB), Dr. Timothy Antoine, during a meeting with Federal Cabinet officials in February.

Key Amendments

  • One amendment aims to give the Banking Act the flexibility it deserves, allowing licensed financial institutions to disclose confidential information where necessary in conducting due diligence for potential transactions. This move is expected to be particularly helpful to the Eastern Caribbean Asset Management Corporation (ECAMC).
  • Another key amendment involves Section 186 of the Banking Act, which establishes a bridge bank for an initial period of twelve months with the possibility of extension by the ECCB for up to four years. The amendment also specifies circumstances under which bridge banks status may be automatically terminated.

Ensuring Integrity and Fit and Proper Criteria

The Prime Minister stressed that the legislation is critical in ensuring that people serving on Boards of financial institutions are of integrity and do not pose a risk to the financial system. He explained that the Bill clarifies fit and proper criteria for members who sit on Boards, citing the importance of appointing professional individuals to the Board of the St. Kitts-Nevis-Anguilla National Bank.

Importance of Legislation

The Prime Minister reiterated that the Banking (Amendment) Bill, 2023 is of utmost importance to St. Kitts and Nevis, which has the fourth largest economy in the Eastern Caribbean Currency Union (ECCU).