Sun | Aug 19, 2018

NCB acquisition of Guardian stake creates conflict for BOJ deputy governor

Published:Wednesday | July 20, 2016 | 1:43 PM

The Bank of Jamaica has opted not to renew the contract of deputy governor Gayon Hosin, saying the recent acquisition of a stake in Guardian Holdings by National Commercial Bank Jamaica creates a conflict of interest in the execution of her duties.

Hosin, who headed the supervisory division for financial institutions, had her last day in office on Tuesday, but she officially demits the central bank on August 19.

Earlier in May, NCB acquired 29.99 per cent of Trinidad-based Guardian Holdings Limited (GHL), concluding a deal that was initially struck last November.

GHL is the parent company of Kingston-based Guardian Life Limited. Guardian Life is headed by Eric Hosin, Gayon’s husband.

The central bank said Hosin was recused from the supervision of NCB, but has found the situation unworkable.

“Under the Banking Services Act, GHL now falls within the NCB Group, which is subject to the supervisory responsibilities normally assigned to Mrs. Hosin as Deputy Governor Financial Institutions Supervisory Division and Deputy Supervisor of Banks,” said BOJ in a statement.

“However, given the systemic importance of the NCB Group, the permanent exclusion of Deputy Governor Hosin from the relevant supervisory processes would significantly diminish her ability to discharge the responsibilities of her office,” BOJ said.

“Against this background, and in the absence of opportunities for reassignment and in the best interests of both parties, the decision was taken to ameliorate the conflict of interest by way of non-renewal of Mrs. Hosin’s current contract of employment.”

NCB is Jamaica’s largest bank with assets of half-trillion dollars.

Hosin has served the central bank for 21 years. Her last contract expired March 2016.

Hosin was not reached immediately for comment. This story will be updated if and when that happens.