Suspension of Dividends Due to the Novel COVID-19 Virus

Bank of Jamaica (BOJ) has been closely monitoring the current impact of the novel COVID-19 virus pandemic on the global and domestic financial system. Notwithstanding the current effects of the pandemic on normal business activities, BOJ would like to indicate that the fundamentals of the Jamaican financial system continue to be strong with licensee’s capital and liquidity exceeding current regulatory requirements and established prudential norms. In addition, the Central Bank stands ready to provide liquidity and other support necessary to ensure that financial institutions can continue to provide credit and other financial services to the public, limit the potential negative economic repercussions on the lives of ordinary Jamaicans and preserve confidence in the Jamaican financial system.

Against this background, and with a view to conserving capital and further enhancing licensees’ lending and loss absorption capacities, Bank of Jamaica, after consultation with the boards of the financial holding company (“FHC”) designates, wishes to confirm the mutual understanding that FHC designates and deposit-taking institutions (“DTI”) will suspend the distribution of profits by way of declaring dividends in any manner (cash or stock) for the 2020 financial year, until further notice. It is also our understanding that FHC designates and DTIs will similarly postpone the distribution of any unpaid dividends declared for the 2019 financial year.

24 April 2020