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Jamaica+Deposit+Insurance+Corporation">Jamaica Deposit Insurance Corporation Introduction The Jamaica+Deposit+Insurance+Corporation">Jamaica Deposit Insurance Corporation (JDIC) was established in accordance with the
Deposit Insurance Act (DIA), 1998 and commenced operations on 31 st August 1998. The
manage a scheme to provide insurance against the loss of deposits held in insured financial
institutions, up to a maximum of $600,000 per depositor in each institution. Additionally, JDIC
makes enquiries of policyholders in respect of the conduct of their financial affairs and acts as
receiver, liquidator or judicial manager of any insolvent policyholder, or of its holding company
or subscriber which becomes insolvent.
Operational and Financial Overview The JDIC will continue to pursue the following strategic business objectives in the financial
Corporation has a critical role in contributing to financial system soundness and stability.
Accordingly, the Corporation will continue ongoing monitoring of policyholders’ performance
and the concomitant risks posed to the Deposit Insurance Fund and promptly reimburse insured
depositors in the event that a policyholder becomes non-viable or is otherwise unable to make
payments to depositors. Additionally the JDIC will update its policyholder risk assessment
framework with considerations for admission of the credit unions to the Deposit Insurance
Scheme and the Bank of Jamaica transition to risk based supervision.
plans to implement a pay-out management information system, update disaster recovery and
business continuity plans, implement a formal enterprise risk management framework and a
records and information management system consistent with internationally and locally accepted
Strong Partnerships - JDIC intends to continue with its contribution to the work of the
International Association of Deposit Insurers and will seek to expand its participation in related
activities aimed at promoting financial system stability. Other initiatives will include providing
technical input/support to several Financial Regulatory Committee working groups to include
coordination and collaboration on selected inter-agency activities in a financial crisis.
JDIC projects a net surplus of $2,199.02 million (2017/18: $1,930.74 million).
The Corporation projects a staff complement thirty-one (31) (2017/18: 23).
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financial products and services, which would enable them to save, invest and build economic wealth. The FIS">NFIS will focus on the following priority areas: MSME and agriculture finance, housing finance, consumer protection and financial literacy, and retail payment systems.
Enhancement of the Resolution Framework for Financial Institutions Preliminary work commenced with the drafting of a concept paper proposing a special resolution regime (SRR) for financial institutions. This concept paper will inform the drafting of a consultation paper, which is expected to be released for public feedback by end February 2017. An inter-agency technical working group of the Financial Regulatory Committee is drafting the papers, with technical assistance from the International Monetary Fund.
The proposed SRR for financial institutions will provide a framework for the orderly resolution of distressed financial institutions in order to protect financial stability whilst minimizing recourse to public funds. The proposed SRR is in keeping with international best practices promoted by the Financial Stability Board in its guidance document “Key Attributes of Effective Resolution Regimes for Financial Institutions”.
Financial Institutions Services Limited
During FY 2016/17, the FIS continued with the winding up of residual activities on behalf of FINSAC including selling remaining properties under its control. The following are some of its key achievements:-
The FIS sold the remaining 10 of the 31 Enchanted Gardens units, which netted $8.2mn. In addition, an agreement has been reached to sell the Mutual Life Warehouse Complex in Kingston which is expected to conclude by May 2017. The remaining properties in FINSAC’s portfolio are four ½ acre lots at Drax Hall, St. Ann and a 16-acre lot at Culloden, Westmoreland.
A total of $48.0mn was collected from the sale of shares in various listed companies and another $12.0mn is anticipated from remaining sales by March 2017. Listed shares for dissolved companies will be transferred to the Accountant General by March 2017.
The FIS has received seven (7) payments totalling US$3.4mn as at October 2016 under a settlement reached in 2013 regarding a property in St. Lucia which was owned by International Hotels (St. Lucia) Limited. There are three (3) remaining payments due in April 2017, October 2017 and April 2018, totalling US$1.3mn.
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Introduction The Corporation">Jamaica Deposit Insurance Corporation (JDIC) was established in accordance with the Deposit Insurance Act (DIA), 1998 and commenced operations on 31st August 1998. The Corporation is one of the Financial System Safety Net (FSSN) Partners and its mandate is to manage a scheme to provide insurance against the loss of deposits held in insured financial institutions, up to a maximum of $600,000 per depositor in each institution. Additionally, JDIC makes enquiries of policyholders in respect of the conduct of their financial affairs and acts as receiver, liquidator or judicial manager of any insolvent policyholder, or of its holding company or subscriber which becomes insolvent. Operational and Financial Overview The Corporation will continue to implement strategies consistent with its objectives which include the following:
• Proactive Readiness - The origin, likelihood and magnitude of a crisis within the financial system are often not easily predictable and JDIC, along with other safety net partners must be positioned for effective resolution. Accordingly, activities will include finalising the Compliance Framework for the Policyholders’ Recordkeeping Guidelines. In addition, the phased development of a new Payout Management Information System is expected to begin.
• Enhanced Operations - Finalise and implement its Enterprise Risk Management Policy and Framework by March 2017. Other activities should include continued review and audit of the ICT infrastructure to ensure its capacity to meet the Corporation’s projected business requirements.
• Strong Partnerships - Continue to build and maintain strong partnerships with those involved in the promotion of financial system stability. Therefore, JDIC will continue to participate in the work of the Financial Regulatory Committee (to effect a National Financial Crisis Management Plan) and will execute a Service Level Agreement with the Bank of Jamaica.
• Intervention and Effective Resolution Management - Continue its work with its FSSN Partners to enhance the resolution framework for financial institutions.
• Public Awareness and Education - Related programmes and initiatives will continue to be key to maintaining depositor confidence.
JDIC forecasts a net surplus of $1,905.16 million (2015/16: $1,946.29 million). The planned staff complement is 33 (2015/16: 22).
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PROPOSALS FOR A SPECIAL RESOLUTION REGIME FOR FINANCIAL
INSTITUTIONS IN JAMAICA: FINANCIAL HOLDING COMPANIES,
DEPOSIT-TAKING INSTITUTIONS, SECURITIES DEALERS AND INSURANCE
COMPANIES (LIFE AND GENERAL)
Jointly published by Members of the Financial Regulatory Committee comprising
Services Commission and Jamaica Deposit Insurance Corporation.
February 27, 2017
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Consultation Paper: Proposals for a Special Resolution Regime for Financial Institutions
power to make loans and give guarantees, against security, in respect of DTIs which
are in financial distress. JDIC has the power to act as liquidator, receiver and judicial
manager in respect of restructuring of DTIs and other members of a financial group
23 . In this context, it is well-placed to act as the implementing agency for the
resolution strategies, determined by the RA.
practical for Jamaica to implement the resolution process through these agencies.
See box 5 below outlines the specific roles and responsibilities for each agency in the
5.10 Given the level of complexity and interconnectedness within the Jamaican
financial sector, particularly where there are entities that are subject to both
regulatory authorities (e.g. an insurer that is part of a financial group as defined by
the BSA), there will be need for effective coordination amongst the relevant
authorities. Coordination will also be crucial to ensure the continuity of systemically
important financial services and payments, clearing and settlement functions. The
SRR will incorporate the necessary consultation and collaboration arrangements for
the effective coordination among the various agencies including consultations with
institutional mechanism to promote effective collaboration and coordination under
5.11 Where the failure of an FI is of systemic importance and the agreed resolution
strategy will require the use of public funds (e.g. through temporary public
ownership or a bridge institution to allow for restructuring), the resolution strategy will
involve consultation with the Minister of Finance.
23 See DIA s. 5 24 Established under the Bank of Jamaica Act
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