Jamaica - Banking SystemsJamaica - Banking Systems
Financial institutions in Jamaica provide a range of services for individual and business/ corporate banking. These include current accounts, savings accounts, loans, credit cards, and internet banking. Some credit cards issued by local banks are for use in Jamaica only, but international credit cards have grown in importance.
The Bank of Jamaica regulates deposit-taking institutions, money services businesses (e.g., cambios and remittance companies), and credit reporting agencies. According to the Bank of Jamaica, credit unions are designated by the Ministry of Finance as “specified financial institutions” under the Bank of Jamaica Act, enabling the Bank of Jamaica to obtain information on their operations. Regulations to establish a formal supervisory framework for these entities are being finalized. The Financial Services Commission regulates insurance companies, securities firms/dealers, unit trusts, private pension funds, and mutual funds. At the end of 2016, there were 11 supervised deposit-taking institutions consisting of seven commercial banks, two merchant banks (Licensed under the Financial Institutions Act) and two building societies. The number of credit unions shrank from 47 at the end of 2009 to 34 at the end of 2015. At the end of 2016, commercial banks held assets of USD 8.5 billion.
Following a crisis in the financial sector in the 1990s, the GOJ increased the prudential and supervisory powers of the BOJ by passing the Financial Institutions Act and the Banking Act. Amendments were also made to the regulations governing Building Societies. The Banking Services Act passed in 2013 aimed to consolidate regulations. Credit Unions are now designated as ‘specified financial institutions’ under the Bank of Jamaica Act, bringing them under the supervision of the central bank. The Jamaica Deposit Insurance Corporation (JDIC) and a FSC were introduced to protect depositors and regulate institutions and brokers outside the scope of the Central Bank’s oversight. These adjustments have brought the regulatory standards governing the financial sector up to international standards and should therefore aid, rather than impede, businesses. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The Bank of Jamaica regulates deposit-taking institutions, money services businesses (e.g., cambios and remittance companies), and credit reporting agencies. According to the Bank of Jamaica, credit unions are designated by the Ministry of Finance as “specified financial institutions” under the Bank of Jamaica Act, enabling the Bank of Jamaica to obtain information on their operations. Regulations to establish a formal supervisory framework for these entities are being finalized. The Financial Services Commission regulates insurance companies, securities firms/dealers, unit trusts, private pension funds, and mutual funds. At the end of 2016, there were 11 supervised deposit-taking institutions consisting of seven commercial banks, two merchant banks (Licensed under the Financial Institutions Act) and two building societies. The number of credit unions shrank from 47 at the end of 2009 to 34 at the end of 2015. At the end of 2016, commercial banks held assets of USD 8.5 billion.
Following a crisis in the financial sector in the 1990s, the GOJ increased the prudential and supervisory powers of the BOJ by passing the Financial Institutions Act and the Banking Act. Amendments were also made to the regulations governing Building Societies. The Banking Services Act passed in 2013 aimed to consolidate regulations. Credit Unions are now designated as ‘specified financial institutions’ under the Bank of Jamaica Act, bringing them under the supervision of the central bank. The Jamaica Deposit Insurance Corporation (JDIC) and a FSC were introduced to protect depositors and regulate institutions and brokers outside the scope of the Central Bank’s oversight. These adjustments have brought the regulatory standards governing the financial sector up to international standards and should therefore aid, rather than impede, businesses. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.