Durrant Pate/Contributor

The just-ended 62nd biannual meeting of the CARICOM Committee of Central Bank Governors was dominated by financial system issues with a strong emphasis on payments market developments and opportunities for enhanced regional collaboration.

As individual member countries and the region collectively seek to modernise their payment systems and accelerate the adoption of digital solutions, the governors reaffirmed their commitment to using every tool in their monetary policy arsenal to combat inflation, ensure financial stability, and promote efficiency and innovation in financial services delivery.

The Central Bank of Barbados (CBB) hosted the 62nd biannual meeting of the CARICOM Committee of Central Bank Governors, held virtually on May 30 and 31. It brought together regional central bank governors to deliberate on pressing economic and financial issues and examined the differential impacts on commodity-based versus service-based economies within the region. 

Recognising the competitiveness of the financial system as crucial to economic prosperity, the governors acknowledged the common challenges faced by citizens across the region, including opening bank accounts and accessing banking services. They pledged to work collaboratively to implement strategies and reforms that address these obstacles, and improve access to banking services across the region. 

Financial stability and inclusion 

Going forward, the CARICOM Governors’ Technical Working Group on Intra-Regional Payments will engage with the Inter-American Development Bank (IDB) team on the Fully Scalable Settlement Engine (FuSSE), a collaborative project between the Bank for International Settlements and the IDB. The two-day meeting also provided a platform to explore various aspects of financial stability and inclusion. Highlights included an overview of the regional financial stability report, findings from a region-wide survey on bank fees, and updates on approaches to addressing correspondent banking issues. To enhance financial resilience, the governors agreed to form a region-wide central bank committee on statistics to harmonize the quality and availability of financial data. Updates from regional working groups, including the recently formed Regional Central Bank Group of Reserve Managers, were also received.

The governors emphasised their commitment to implementing fintech solutions, mitigating cybersecurity risks, and incorporating artificial intelligence into central banking operations. Additionally, the Caribbean Technical Assistance Centre (CARTAC) presented on climate risk and its implications for financial stability. 

Climate-related risks

Governors agreed to continue incorporating climate-related risk in their financial stability analytical toolkits. Ten Caribbean central banks participated in the meeting, which was chaired by the Central Bank of Barbados (CBB) Governor D. Kevin Greenidge. Governors recognised the situation in Haiti and expressed solidarity for a durable solution. The governors will reconvene in Barbados in November to continue their discussions on matters of mutual interest and concern.