Bank of Jamaica’s Financial Stability Oversight Council to Strengthen Systemic Risk Management
The Bank of Jamaica (BoJ) has empowered its Financial Stability Supervision Committee (FSSC) to develop prescriptive rules, standards, and codes for financial institutions to mitigate systemic threats to the country’s financial stability.
Establishment and Purpose of FSSC
The FSSC was established in 2015 and is responsible for reviewing developments in the financial system and advising on macroprudential policy. The committee also provides oversight of financial stability assessments prepared by BoJ staff.
Composition of FSSC
The FSSC consists of six ex officio members and two appointed members: David Marston, former Chief Risk Officer of the International Monetary Fund, and Professor Claremont Kirton, retired Professor of Economics at the University of the West Indies.
Importance of Strengthening Systemic Risk Management
According to BoJ Governor Richard Byles, “The FSSC plays a critical role in identifying vulnerabilities within the financial system and developing strategies to mitigate these risks.” The committee’s efforts are aimed at ensuring that Jamaica’s financial institutions operate in a stable and resilient manner, thereby protecting the country’s economic stability.
Collaboration with Other Regulatory Bodies
In related news, BoJ has been working closely with other regulatory bodies, including the Financial Services Commission and the Jamaica Deposit Insurance Corporation, to ensure effective oversight of the financial sector.
Key Takeaways
- The FSSC is responsible for reviewing developments in the financial system and advising on macroprudential policy.
- The committee consists of six ex officio members and two appointed members.
- The FSSC aims to strengthen systemic risk management in Jamaica’s financial system to protect the country’s economic stability.
- BoJ has been collaborating with other regulatory bodies to ensure effective oversight of the financial sector.