SAINT KITTS AND NEVIS PASSES BANKING ACT AMENDMENTS TO STRENGTHEN SAFETY AND FAIRNESS

BASSETERRE, SAINT KITTS, AUGUST 11, 2025 (SKNIS) – The National Assembly today, August 11, 2025, passed key amendments to the Banking Act, equipping the Eastern Caribbean Central Bank (ECCB) with modern tools to better safeguard depositors, borrowers, and the wider economy.

The Banking (Amendment) Bill, 2025, moved by Prime Minister and Minister of Finance, the Honourable Dr. Terrance Drew, strengthens rules to keep banks safe, fair, and accountable, while ensuring that customers have greater access to transparent and equitable financial services.

“In a region where our economies are closely linked, a strong and independent ECCB ensures that banks across Member States follow the same high standards,” Prime Minister Drew said. “By modernising the Banking Act, this amendment gives the ECCB sharper tools to prevent risky practices, keep fees fair, and resolve customer complaints more effectively and efficiently. For the everyday man and woman, this means easier access to fair financial services, better protection for savings, and more trust that the bank you choose will treat you right.”

The Bill introduces key reforms: it modernises definitions to reflect today’s banking realities; permits banks to offer selected new services under strict oversight; strengthens and streamlines rules for revoking licences; brings currency exchange operations under ECCB regulation; tightens controls on profit distribution and lending to related parties; regulates outsourcing arrangements and property leasing; raises standards for financial statements and public disclosure; prohibits shell banks and risky dealings with them; enhances risk-based supervision; and empowers the ECCB to cap excessive fees.

“The financial world moves quickly, Madam Speaker. Our laws must keep pace carefully and with the public interest at heart. ThisBill achieves that,” Prime Minister Drew affirmed.

The amendments build on previous reforms, including the 2023 updates, and align with both regional consensus and international best practices. The strengthened Banking Act will ensure the ECCB can maintain high prudential standards across the Eastern Caribbean Currency Union (ECCU), protect consumers, and support a more inclusive financial sector.

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