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The process of political decolonisation has triggered significant changes in the institutional arrangements in the OECS countries. The post-war period has produced an enlarged, and a relatively diversified and sophisticated financial system . A number of non-bank intermediaries are supplementing the services offered by banks and competing with banks on the retail and wholesale markets. There is evidence of a shift from the dominance of banks in intermediation to non-banks, as well as a broadening of the functions of banking institutions into non-traditional banking business. These developments could have serious implication for the monetary authority, as the unpredictability of non-bank activity could frustrate monetary policy. This paper examines the process of financial restructuring in the OECS financial system, and articulates some policy issues with respect to the development of the financial system.