Thu | Nov 26, 2020

BOJ retains former Jamaican IMF official - Marston to advise on updating investment framework for non-bank financial sector

Published:Monday | April 30, 2018 | 12:00 AM

Finance Minister Dr Nigel Clarke has announced that the Bank of Jamaica (BOJ) has retained the services of David Marston, who is a former senior adviser, deputy director and chief risk officer of the International Monetary Fund (IMF).

Marston, a Jamaican, is currently a member of the Eminent Persons Group of the G-20 and is highly respected for his work advising central banks and governments around the world.

Clarke, speaking at the Caribbean Association of Insurance and Financial Advisors (CARIAIFA) in Montego Bay, St James last night, said the Financial Stability Report produced by the BOJ stated that the non-bank financial sector, consisting of pension funds, insurance companies, security dealers and collective investment schemes had assets of $1.7 trillion in 2017 and, in assets, is larger than the banking sector.

"We want to ensure that while macro-prudential stability is maintained, deepened and entrenched, the regulatory framework for the non-bank financial sector provides a foundation that allows for the deepening of financial inclusion and the acceleration of economic expansion,” said Clarke.

In commenting on the retention of Marston’s services, Clarke said: “The reduction in government borrowing - public debt now projected to fall below 100 per cent of GDP by end March 2019 - creates real opportunities to accelerate our efforts to convert and re-direct savings into investment, job creation and economic empowerment for all Jamaicans."

He added: "In the near term this will involve a focus on a revised investment framework for the non-bank financial sector. In parallel, we will focus on creating opportunities for improved access to credit and financial services to support business and entrepreneurial activity across the board, as envisaged in the National Financial Inclusion Strategy.”

Clarke stated that Marston will support Governor Brian Wynter in leading these initiatives. The minister said “the intention is for a consultative process that will lead to actionable policy, legislative and reform initiatives to accelerate and deepen the role of finance and institutional capital in supporting inclusive growth while maintaining financial sector stability, which, of course, is paramount".