Prime Minister of Jamaica Dr Andrew Holness says the Government is reviewing the country’s financial and regulatory framework to move the country from economic stability to one of growth and opportunity.

“Jamaica’s current financial regulatory framework was shaped largely in the post-FINSAC period, at a time when our macroeconomic reality was fundamentally different from the one we have today,” he said in his keynote address at the 21^st Jamaica Stock Exchange Regional Investments and Capital Markets Conference on Tuesday evening (January 20).

“It was constructed in a period marked by vulnerability and low confidence, with an overriding necessity to restore confidence and stability in the financial system. Let me say, unequivocally, that framework has served Jamaica well. It has delivered financial stability, strong and credible prudential oversight, sound, well capitalised institutions, and systemic resilience across the financial sector as a whole,” Dr Holness continued.

The conference was held at the Jamaica Pegasus in New Kingston from Tuesday, January 20 to Thursday, January 22, 2025.

The prime minister asserted, however, that frameworks should never be stagnant, and as the country’s imperative shifts from risk containment due to various local and global crises, so too must the regulatory framework.

While highlighting the success of the policies that protected Jamaica’s financial system from failing, he said, “We now have a responsibility to build on that success.”

“The architecture that once focused primarily on risk containment must now be recalibrated to enable opportunity. The same framework that shielded Jamaica in a period of vulnerability must now be adapted to support expansion, innovation, and scale in a period of strength,” he added.

Among the successes of the present regulatory framework that he listed were: lower public debt, robust external reserves, credible and durable fiscal anchors, and deeper, more sophisticated domestic capital markets.

Dr Holness emphasised that the review of the current financial and regulatory framework does not negate “what has worked”, but rather builds upon it as the Jamaican economy evolves and seek to align with local and global realities.

“The risks we face today are different, the instruments available to us are more complex, and the opportunities before us are far greater. It is therefore time to deliberately, responsibly, and transparently revisit and modernise elements of the financial regulatory framework. Not to weaken stability, but to ensure that regulation is aligned with evolving risk profiles, increased market sophistication, innovation in financial products and instruments, and the imperative for capital markets to play a more dynamic role in fueling economic resurgence and resilience,” Dr Holness stated.

The prime minister noted that, beyond achieving fiscal stability, the regulatory framework should foster growth.

“The regulatory regime must evolve. It must continue to preserve confidence, but also focus on unlocking capital, deepening markets, and positioning Jamaica’s financial system to support the next phase of national development,” he explained.

Still, Dr Holness shared that he did not intend to make any specific policy announcements at the conference. Instead, he said, he was outlining Jamaica’s new policy direction.

“Which is why I am saying that the private sector is a critical partner in Jamaica. We must create opportunities. So, as we approach the upcoming budget presentation, the Government will be bringing forward initiatives that are consistent with this approach,” the prime minister said.