St Kitts and Nevis passes Banking Bill 2025 to strengthen ECCB and protect consumers

St Kitts and Nevis: Prime Minister and Minister of Finance, Dr Terrance Drew presented the Banking (Amendment) Bill, 2025, during the National Assembly on Monday, August 11. This legislation was passed with new reforms to the Banking Act, which incorporates the Eastern Caribbean Central Bank (ECCB) with advanced and more modern tools to protect depositors, borrowers, and the nation’s economy.

The 2025 Banking (Amendment) Bill aims to put in place better rules to protect the safety, fairness and accountability of the banks, which will also provide customers with easy access to clear 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,” noted PM Drew.

He further added that the amended legislation will offer ECCB better tools to prevent dangerous practices and resolve customer complaints effectively and efficiently. 

The Prime Minister said, “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.”

Key reforms introduced in the Banking (Amendment) Bill, 2025

• It updates definitions to present today’s banking reality
• Allows banks to introduce certain new services within strict oversight
• Reinforces and simplifies license revocation rules
• Puts currency exchange into ECCB regulation
• Tight controls on profit distribution and related party loans
• Reports on outsourcing agreements and property lease
• Raises the bar for financial reports and public disclosure
• Outlaws shell banks and issues with them
• Improves risk based supervision 
• Empowers the ECCB to cap excessive fees

Prime Minister Drew reinstated the public-centered vision of this new legislation. He said, “The financial world moves quickly, Madam Speaker. Our laws must keep pace carefully and with the public interest at heart. ThisBill achieves that.”

The amendments complement the past reforms, including the 2023 revisions, and take into account both regional agreement and international best practices. The now strengthened Banking Act will enable the ECCB to uphold strong prudential standards within the Eastern Caribbean Currency Union (ECCU), safeguard consumers, and facilitate a more inclusive financial sector.