Excess Liquidity in ECCU Banking System Reaches EC$1.41B as Officials Push SME Lending
BASSETERRE, St. Kitts — Commercial banks across the Eastern Caribbean Currency Union are holding EC$1.41 billion in excess liquidity, a figure regional leaders say underscores both financial stability and the need to channel idle cash into productive growth.
The figure was disclosed during the presentation of the communique following the 112th meeting of the Monetary Council of the Eastern Caribbean Central Bank (ECCB), where officials reviewed monetary and financial conditions across the union.
“Excess liquidity was estimated at 1.41 billion EC dollars as at the end of January 2026,” ECCB Governor Timothy N.J. Antoine said during the media briefing.
While the banking sector remains stable and highly liquid, the Monetary Council endorsed continued efforts to direct funds toward productive investment, particularly small and medium-sized enterprises (SMEs) under the region’s “Big Push” development strategy.
Antoine noted that deposits in the banking system now exceed EC$28 billion and are growing faster than loans, a dynamic that has kept lending rates subdued and reinforced the central bank’s decision to maintain the minimum savings rate at 2%.
“If we allow the market to determine that rate, it will be less than 1%,” Antoine said, explaining that the abundance of deposits relative to loan demand is influencing interest rate conditions.
The governor pointed to structural reforms aimed at unlocking credit expansion, including the rollout of the ECCU Credit Bureau, now live in five member states, which he said is expected to improve lending decisions and expand access to financing.
“Whenever credit bureaus have been established, credit has increased,” Antoine said, adding that better risk assessment should result in faster and potentially cheaper lending decisions.
The Council also highlighted the pilot Retail Bond Programme launched in Grenada in 2025 as a milestone in broadening household participation in capital markets and mobilizing savings toward investment.
Regional leaders stressed that while liquidity levels reflect confidence in the financial system, sustained economic transformation will require converting idle funds into credit for entrepreneurs, startups and priority sectors such as food security, renewable energy and logistics.
Growth across the ECCU is projected at 3.3% in 2026, below the roughly 7% annual expansion officials say is needed to double regional output within a decade.
The 112th meeting of the Monetary Council was held Feb. 13 at the ECCB headquarters in St. Kitts and Nevis under the chairmanship of Antigua and Barbuda Prime Minister Gaston Browne, who participated virtually.