Central Bank of Trinidad and Tobago published its Annual Report 2024 for the year ended September 30, 2024, outlining monetary policy actions, supervisory priorities and payments reforms. The report highlights an unchanged repo rate of 3.50 per cent and a reduction in the primary reserve requirement for commercial banks from 14.0 per cent to 10.0 per cent, alongside implementation of Basel III leverage and capital buffer measures and expanded work on fintech and payment system oversight. The reserve requirement reduction took effect from the reserve week beginning July 24, 2024 and was expected to inject roughly TTD 4.0 billion into system liquidity. Basel III requirements that became effective on January 01, 2024 included the Leverage Ratio, Capital Conservation Buffer and Domestic Systemically Important Bank capital add-on, supported by guidelines issued in October 2023 and a D-SIB buffer range of 1.0 per cent to 2.5 per cent of risk-weighted assets in Common Equity Tier 1, plus a 2.5 per cent Capital Conservation Buffer. Further liquidity standards were advanced through a second quantitative impact study on the Liquidity Coverage Ratio in March 2024, which informed draft Financial Institutions (Liquidity) Regulations and an LCR guideline issued to banks for consultation. Payments initiatives included continued migration of Real-Time Gross Settlement and cross-border payments to ISO 20022 to meet mandatory SWIFT standards by November 2025, amendments to the E-money Issuer Order in December 2023 to increase wallet sizes and monthly transaction limits, and progress on a Payment Systems and Services Bill and regulations prepared for public consultation. The Bank also reported collaboration on implementing a Unified Payments Interface-type real-time payments platform and the registration of two additional electronic money issuers. Looking ahead to FY2024/25, stated priorities included leveraging an imminent increase in deposit insurance coverage, introducing a fast payments arrangement, strengthening domestic cybersecurity in financial transactions and boosting preparedness for climate change. The report also indicated that industry consultation on proposed amendments to the Financial Institutions Act, 2008 would take place in the following year, and that an updated Risk-Based Supervision Framework was expected to be finalised and operationalised in FY2024/25. Planned milestones included circulation of an updated 2025 series TTD 100 polymer banknote in the first half of 2025, implementation of a document management system in 2025, automatic exchange of information requirements expected to be implemented in 2025, a Net Stable Funding Ratio consultation paper intended for 2025, and preparations for the Caribbean Financial Action Task Force fifth round mutual evaluation expected to commence in March 2025 with an on-site review scheduled for March 2026.
Central Bank of Trinidad & Tobago 2025-12-16
Central Bank of Trinidad and Tobago Annual Report highlights reserve requirement cut to 10% and Basel III resilience measures
The Central Bank of Trinidad and Tobago's Annual Report 2024 outlines key actions, including maintaining the repo rate at 3.50% and reducing the primary reserve requirement for banks from 14.0% to 10.0%. It details Basel III measures, fintech oversight, and payments reforms, including migration to ISO 20022 standards and amendments to the E-money Issuer Order. Future priorities include enhancing deposit insurance, fast payments, cybersecurity, and climate change preparedness, alongside industry consultations on financial regulations and a new Risk-Based Supervision Framework.