Grenada Set to Review Regulatory Framework for Financial Institutions

Strengthening Oversight and Promoting Stability in the Sector

The government of Grenada is embarking on a comprehensive review of its regulatory framework for financial institutions, aimed at boosting investor confidence and promoting economic growth. The move comes as part of efforts to strengthen oversight and ensure stability in the sector.

Key Aspects of the Review

• Transparency: Proposed changes are expected to enhance transparency in the sector, ensuring that financial institutions operate with greater accountability and openness.
• Risk Management: The review aims to improve risk management practices within financial institutions, reducing the likelihood of systemic failures and protecting consumers from potential losses.
• Consumer Protection: Amendments to the existing regulatory framework will focus on safeguarding the interests of consumers, including investors and depositors.

Enhanced Regulatory Powers

A key aspect of the review is the establishment of a more robust supervisory regime for financial institutions in Grenada. This includes plans to:

• Conduct On-Site Inspections: Regulators will be empowered to conduct regular on-site inspections to ensure compliance with regulatory requirements.
• Gather Information: Regulators will have greater authority to gather information from financial institutions, enabling them to assess their risk profiles and take corrective action when necessary.
• Impose Penalties for Non-Compliance: Regulators will be able to impose penalties for non-compliance with regulatory requirements, strengthening the sector’s overall stability.

Industry Stakeholders Welcome the Move

Industry stakeholders have welcomed the move, citing the need for a more robust regulatory framework to support the growth of the sector. “This is an important step towards creating a more stable and transparent environment for financial institutions in Grenada,” said one senior executive at a local bank. “We look forward to working with regulators to ensure that our operations are in line with the new requirements.”

Timelines for Implementation

The review process is expected to be completed within the next six months, with the aim of implementing the revised regulatory framework by the end of 2024.