The Senate has given its backing to the Eastern Caribbean Deposit Insurance Corporation Agreement Bill 2025, a harmonised regional measure designed to protect depositors and bolster financial stability across the Eastern Caribbean Currency Union (ECCU).
Described by Senate Majority Leader Shenella Govia as a “historic” and “transformational” piece of legislation, the bill provides legal effect in Antigua and Barbuda to a regional agreement establishing the Eastern Caribbean Deposit Insurance Corporation (ECDIC). The ECDIC will offer deposit insurance coverage of up to EC$50,000 per depositor per financial institution.
“This bill… holds real and profound implications for every single citizen in Antigua and Barbuda,” Govia said. “It means small account holders will no longer face total loss in the event of a bank collapse. There will be a dedicated, regionally managed insurance fund – a financial buffer for bad days.”
Govia outlined the structure of the new body, noting that the board of directors will include the Governor of the Eastern Caribbean Central Bank (ECCB), financial experts from member states, and representatives from finance ministries. She welcomed the bill’s alignment with global best practices and highlighted provisions in Article 18 outlining penalties and premiums.
Senate Minority Leader David Massiah also supported the bill but flagged several areas for further scrutiny and improvement. He expressed concern over Clause 13, which he said gives undue supremacy to the Banking Act, potentially causing legal ambiguities.
“We need clarity,” Massiah told the Senate. “There should be harmonisation provisions to ensure regulatory consistency.”
He also called for the inclusion of an independent director on the board to balance the influence of the ECCB and national finance ministries, greater transparency regarding excluded depositors, and the introduction of appeal mechanisms for denied claims.
Massiah further recommended that the EC$50,000 insurance cap be reviewed every three years to reflect inflation and average deposit trends, and he urged for clearer provisions ensuring the corporation’s decisions are subject to judicial review.
Independent Senator Kiz Johnson lent her full support to the bill, describing it as “long overdue” and vital to public confidence in the financial system. Drawing on insights from Antiguan banking professionals working in Canada and the ECCB, Johnson said the measure was essential for protecting vulnerable depositors and preventing panic in times of economic uncertainty.
“Cash is still king,” Johnson stated. “When a taxi operator, a vendor, a hairdresser, or even you and I work hard and save, we expect to have that money when we need it.”
She also emphasised that over 100 countries already have deposit insurance systems in place and that the Caribbean must keep pace with global developments.
“This bill represents a vital step in strengthening the resilience and stability of our region’s financial system,” she said.
The legislation is part of a broader effort among ECCU members – including Dominica, Grenada, Montserrat, Saint Lucia, Saint Kitts and Nevis, Saint Vincent and the Grenadines, and Anguilla – to establish a unified deposit insurance framework managed under the ECCB.
The bill was passed without.