Bank of Jamaica
The main objectives of the Central Bank were defined by the Bank of Jamaica Act to be:
- To issue and redeem notes and coins.
- To keep and administer the reserves of Jamaica.
- To influence the volume and conditions of supply of credit so as to promote the fullest expansion in production, trade and employment, consistent with the maintenance of monetary stability in Jamaica and the external value of the currency.
- To foster the development of money and capital markets in Jamaica
- To act as banker to the Government.
In the earlier years, the Central Bank's role tended to be of a largely reactive nature as the institution grappled with several national and international developments. However, in recent years, monetary policy implementation has been characterized by a more proactive stance, as the Central Bank has actively sought to encourage the appropriate environment for economic growth and development. In this regard, in 1985, in collaboration with the International Bank for Reconstruction and Development, the Central Bank introduced a programme for financial reform - The Financial Sector Reform Programme (FSRP). This initiative was aimed at more effective intermediation, through the encouragement of market forces and the strengthening of the Central Bank's capacity to implement monetary policy.
The Bank of Jamaica’s supervisory authority and responsibility for deposit-taking financial institutions is established by virtue of a number of Primary and Secondary Legislative Acts of Parliament. These statutes provide the legal and policy parameters for the licensing and supervision of financial institutions. These include the legal basis for enacting Secondary legislation, prescribing prudential criteria and minimum solvency standards to be maintained by licensees, as well as the various powers available to the BOJ and the Minister of Finance in the event that bank distress or failure appear imminent or threatens the soundness of the financial system. Subsidiary legislation or Regulations specify the precise requirements and procedures in dealing with certain areas of supervisory standards and institutional practice impacting commercial banks, merchant banks and building societies.
The Bank of Jamaica Act, 1960 (amended 1992, 1994, 1995, 2001, 2002, 2004, 2005)
The Banking Act, 1992 (amended 1997, 2002, 2004)
The Financial Institutions Act, 1992 (amended 1997, 2002,2004)
The Building Societies Act, 1897 (amended 1995, 2002, 2004)
The Bank of Jamaica (Building Societies) Regulations, 1995 (amended 2005)
The Building Societies (Licences) Regulations, 1995
The Banking (Establishment of Branches) Regulations, 1996
The Banking (Amalgamation and Transfers) Regulations, 1996
The Banking (Licence Fees) Regulations, 2003
The Financial Institutions (Establishment of Branches) Regulations, 1996
The Financial Institutions (Amalgamation and Transfers) Regulations, 1996
The Financial Institutions (Licence Fees) Regulations, 2003
The Banking (Capital Adequacy) Regulations, 2004
The Financial Institutions (Capital Adequacy) Regulations, 2004
Licensees also have statutory responsibilities under other pieces of legislation the administration of which reside principally with other competent authorities (e.g. The Jamaica Deposit Insurance Corporation; The Financial Intelligence Division; the Department of Public Prosecution):
The Companies Act, 2004
Deposit Insurance Act, 1998
The Terrorism Prevention Act, 2005
The Income Tax Act
The Proceeds of Crime Act, 2007
Financial Investigations Division Act, 2010
Terrorism Prevention (Reporting Entities) Regulationst, 2010
Dr. Christine Clarke
Dr. Nigel Clarke
Gary ‘Butch’ Hendrickson
*Appointed by Cabinet in April 2016