Kingston, Jamaica - 25 January 2023 - On January 23, 2023, The Minister of Finance and the Public Service, the Honourable Dr Nigel Clarke announced the adoption of a “Twin Peaks Model” to reform financial sector regulation in Jamaica.
The mission of the Jamaica Bankers Association (JBA) is to ensure the strength and continuing success of our member organisations by promoting a safe, vibrant and competitive banking sector through an effective programme of advocacy and education that will also enhance the economic well-being of consumers within the banking community. A strong and viable financial system is an important enabler of economic growth and well-being for all Jamaican citizens.
Within this context, we endorse the proposed changes in principle.
The efforts aimed at consolidation of the prudential supervision and regulation of deposit taking and non-deposit taking institutions, offer the potential for improved technical, resource and cost efficiencies, enhanced supervision and management of systemic risk, and standardisation of KYC and other requirements, which can positively benefit customers.
The establishment of a regulator for consumer protection and market conduct creates a pathway for enhanced transparency, empowerment of consumers and the rebuilding of trust and confidence in the sector.
These actions are consistent with world-class practices and the recommendations from the International Monetary Fund (IMF), which were already in progress.
We also welcome the commitment to transparency and accountability in the form of prosecuting perpetrators to the full extent of the law and strengthening the sanctions for white collar crime.
Combined, these efforts will enhance the strong and well-capitalised financial sector that exists today with important guardrails for maintaining integrity, improving efficiency and effectiveness, and restoring confidence among local and international customers and investors going forward.