During a press briefing on Monday (January 23), Finance Minister Dr Nigel Clarke, announced the adoption of a “Twin Peaks Model” to reform financial sector regulation in Jamaica.

The move aims to consolidate the prudential supervision and regulation of deposit-taking and non-deposit taking institutions in the country, in order to improve technical, resource, and cost efficiencies, enhance supervision and management of systemic risk, and standardise Know Your Customer (KYC) and other requirements for customers.

The new regulation model also includes the establishment of a regulator for consumer protection and market conduct, which will create a pathway for enhanced transparency, empowerment of consumers, and the rebuilding of trust and confidence in the sector. These actions are consistent with world-class practices and the recommendations from the International Monetary Fund (IMF), which were already in progress.

The Jamaica Bankers Association (JBA) endorses the proposed changes, stating that a strong and viable financial system is an important enabler of economic growth and well-being for all Jamaican citizens.

The JBA also welcomed the commitment to transparency and accountability in the form of prosecuting perpetrators to the full extent of the law and strengthening the sanctions for white-collar crime. Combined, these efforts will enhance the strong and well-capitalized financial sector that exists today with important guardrails for maintaining integrity, improving efficiency, and effectiveness, and restoring confidence among local and international customers and investors going forward.

The JBA’s mission is to ensure the strength and continuing success of member organisations by promoting a safe, vibrant, and competitive banking sector through an effective program of advocacy and education.