JDIC To Undertake Reforms

The Jamaica Deposit Insurance Corporation (JDIC) will be pursuing several internationally compliant reforms during fiscal year 2022/23, which aim to minimise the potential occurrence and impact of financial crises.

They include establishing newer protection schemes for deposit and non-deposit taking financial institutions, financial consumer protection, and financial inclusion strategies.

Pursuit of these reforms is among several engagements the JDIC has programmed for implementation this year, which are intended to further safeguard clients of deposit-taking institutions (DTIs) against possible risks to their interests.

Details are contained in the Jamaica Public Bodies Estimates of Revenue and Expenditure for the year ending March 2023.

Among the other activities are the incorporation of credit unions as member institutions of the deposit insurance scheme, managed by the JDIC, upon enactment of the Cooperative Societies (Amendment) Bill and promulgation of the Credit Union (Special Provisions) Bill, and licensing of specially authorised credit unions by the Bank of Jamaica.

Additionally, the JDIC will be looking to implement guidelines for standard record-keeping requirements for all policyholders and manage their admission, monitoring, and risk assessment.

The Corporation will also seek to enhance public education and awareness by disseminating information on the scheme through school programmes, online training for policyholders, and public fora.

According to the Public Bodies estimates, the JDIC will continue to manage the insurance scheme that provides coverage against loss of deposits held in insured DTIs.

The scheme provides insurance coverage against loss of deposits, up to a maximum of $1.2 million per depositor in each institution.

The deposit insurance fund balance for 2022/23 is projected at approximately $34.8 billion.

The JDIC, which is one of the Financial System Safety Net partners, was established in accordance with the Deposit Insurance Act, 1998, and commenced operations on August 31, 1998.

Its mandate is underpinned by the continuation of policy reviews and legislative enhancements to improve the financial system.