BOJ Act to be Amended

The Bank of Jamaica Act is to be amended by December this year, to establish the legal framework to support its responsibility for overall financial system stability.
Making the disclosure at Tuesday’s (January 19) sitting of the House of Representatives, Minister of Finance and the Public Service, Hon. Audley Shaw, said that the move will support efforts by the Government to respond to the challenges posed by the country’s highly interconnected financial institutions.
The amendments will allow for more effective supervision of financial conglomerates and harmonise the prudential standards that apply to commercial banks, building societies, and merchant banks.
“There are several additional reforms pertaining specifically to deposit-taking institutions that will be developed. These include reforms that deal with enhancing capital rules to address all market risks, including equity and interest rate risks; improving the frameworks for anti-money laundering/combating the financing of terrorism and combating unregulated financial organisations,” Mr. Shaw outlined.
He said the Government will also reform the securities dealer sector to strengthen its ability to withstand shocks.