JIS News

The Jamaica Deposit Insurance Corporation (JDIC) recorded a closing balance of $3.1 billion under its Deposit Insurance Fund for the financial year ending March 2007, representing a 29 per cent increase over that of the previous year’s balance.
According to the Corporation’s annual report for the period, the $700 million accretion to the Fund during the year represents the net surplus from insurance premium income and returns on investments, net of operating expenses.
The Fund’s total at the end of March 2007 was equivalent to 2.31 per cent of insured deposits at the existing $300,000 coverage limit. This is up from 1.72 per cent at the end of the previous fiscal year. The Fund, which is now solely in Government of Jamaica-based securities, had an investment portfolio of $3.2 billion at March 31, 2007, the report outlined.
The JDIC, under the Deposit Insurance Act (1998), manages a Deposit Insurance Fund, whereby premiums are collected from the insured institutions on an annual basis at a flat rate of assessment. This, together with the income from its invested resources, constitutes the total inflows to the Fund.
A study assessed that the Fund was “adequate in the medium-term, based on the current macro-economic climate, positive medium-term outlook, and satisfactory risk levels of individual institutions, sub-sectors and overall system”. In the evaluation, it was also recommended that the Corporation accelerates its efforts toward securing greater definition and clarity with respect to resolution processes and intervention coordination.

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