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JM | Jan 24, 2023

BOJ takes on FSC’s regulatory role in wake of SSL fraud scandal

/ Our Today

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Bank of Jamaica, in downtown Kingston. (Photo: JIS)

In an effort to support the growth of the financial sector while maintaining its safety and soundness, the Jamaican Government has announced yesterday (January 23) plans to consolidate the roles of non-bank financial oversight into the Bank Of Jamaica (BOJ).

“With the intention of supporting the continued growth of the financial sector, while preserving the safety and soundnes of the financial system, we need a regulatory structure that is appropriate for our circumstances and is responsive to our needs,” said Finance Minister Dr Nigel Clarke.

The Government of Jamaica will therefore persue a unification of prudential supervision and regulation of deposit-taking financial institutions which are commercial banks, billing societies, mechant banks and credit supervisions which are currently supervised by the BOJ and non-bank financial institutions which are security dealers, insurance companies and pension fund, will be consolidated into one institution, the Bank of Jamaica.”

Dr Nigel Clarke, minister of finance and the public service

Clarke pointed out that deposit-taking institutions account for 90 per cent of financial systems assets in Jamaica, which are already supervised by the BOJ.

“Against that reality, fragmented supervision can lead to regulatory gaps in a landscape such as ours where financial conglomerates dominate. In addition, there is often duplication of effort, duplicate oversight and sometimes coordination challenges, the natural institutional silos that emerge detract from the nimbleness needed to comprehensively regulate financial groups,” he continued.

Dr Nigel Clarke, minister of finance and the public service. (Photo: JIS)

Said the minister: “The Government of Jamaica will therefore persue a unification of prudential supervision and regulation of deposit taking financial institutions which are commercial banks, billing societies, mechant banks and credit supervisions which are currently supervised by the BOJ and non-bank financial institutions which are security dealers, insurance companies and pension fund, will be consolidated into one institution, the Bank of Jamaica.”

READ: Finance Minister announces new board at the FSC

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