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Banking law to go live mid 2015

Published:Wednesday | October 8, 2014 | 10:00 AM

Jamaica's new banking regime will not take effect before mid-year 2015, giving the banks another opportunity to influence and review regulations being formulated.

President of the Jamaica Bankers Association (JBA) Maureen Hayden-Cater said the group had been advised that the deadline for completion of regulations was June 2015 and that the Banking Services Act passed in June and enacted in July will not go into operation until the regulations under the Act have been finalised.

As summarised by the JBA, the legislation aims to harmonise prudential standards across deposit-taking institutions; facilitate consolidated supervision of financial conglomerates; strengthen the corrective, sanctioning and resolution regime of the Bank of Jamaica (BOJ); and ensure that the BOJ has operational independence for supervision.

deadline for completion

Hayden Cater said BOJ has communicated to the JBA that the deadline for completion of the regulations is June 2015, and that interest groups "will again be given an opportunity to provide input into the process by or before calendar year end (December 2014)".

She said the BOJ said it was receiving technical assistance on some aspects of the regulations, including the consumer code.

Jamaica's banking system comprises six commercial banks, two merchant banks and three building societies, whose combined assets top $1.06 trillion. The eleven institutions also manage $672 billion of depositors' funds.

avia.colinder@gleanerjm.com