The Bank of Jamaica's supervisory and regulatory authority for deposit-taking institutions has been established through a number of Primary and Secondary Legislative Acts of Parliament. The principal pieces of legislation that govern the supervision and periodic examination of commercial banks and specified financial institutions are The Bank of Jamaica Act, The Banking Act, The Financial Institutions Act and The Building Societies Act.
These statutes provide the legal and policy parameters for the licensing and supervision of financial institutions including the legal basis for enacting Secondary Legislation, prescribe prudential criteria and minimum solvency standards to be maintained by licensees, as well as the various powers available to the BOJ and the Minister of Finance and Planning in the event that bank distress or failure appear imminent or threatens the soundness of the financial system.
Principal pieces of legislation:
- The Bank of Jamaica Act, 1960 (amended 1992, 1994, 1995, 2001, 2002, 2004, 2005)
- The Banking Act, 1992 (amended 1997, 2002, 2004)
- The Financial Institutions Act, 1992 (amended 1997, 2002,2004)
- The Building Societies Act, 1897 (amended 1995, 2002, 2004)
The following subsidiary legislation also specify precise requirements, procedures, supervisory standards and institutional practices for commercial banks, merchant banks and building societies: