JDIC to pursue newer protection schemes

The Jamaica Deposit Insurance Corporation (JDIC) will be pursuing the establishment of newer protection schemes to minimise the potential occurrence and impact of financial crises during fiscal year 2024/25.

Implementation of these and other globally-compliant reforms is among the entity's programmed activities for the period.

The interventions also include establishing protection schemes for non-deposit-taking financial institutions, financial consumer protection, and financial inclusion strategies.

Other targeted engagements to minimise the occurrence and impact of financial crises include liquidity, capital adequacy, macro prudential regulations, crises management, and effective resolution frameworks for financial institutions.

Details of these and other activities are contained in the Jamaica Public Bodies Estimates of Revenue and Expenditure for the Year ending March 2025.

Meanwhile, the JDIC will collaborate with other financial system safety net (FSSN) partners in relation to ongoing enhancement of the financial system regulatory framework, which remains a priority for the Government. This is to bolster financial system soundness and public confidence.

Accordingly, FSSN members are pursuing several initiatives to improve the regulatory and supervisory framework for the financial sector as well as financial consumer protection mechanisms, consistent with the Government's ongoing economic reform programme to align with international best practise standards.

The corporation will also be looking to enhance the frameworks and structures to improve data protection and monitor developments in digital financial solution products and services offered by deposit-taking institutions (DTIs) and non-DTIs, and emerging sector trends to ensure appropriate policy responses.

Additionally, the JDIC will be pursuing the implementation of guidelines for standard record-keeping requirements for all policyholders.

The corporation will further develop guidelines and other appropriate policies and procedures in relation to its role as trustee/liquidator and resolution administrator under the Financial Institutions Resolution Act.

Other scheduled engagements include managing policyholders' admission, monitoring and risk assessment, and enhancing public education and awareness by disseminating information on the Deposit Insurance Scheme (DIS) through school programmes, online training for policyholders, and public fora.

According to the Public Bodies Estimates, the JDIC will continue to manage the DIS to provide insurance against the loss of deposits held in DTIs.

The JDIC projects a net surplus of $4.34 billion and a Deposit Insurance Fund balance of $45.36 billion for 2024/25. The Corporation also projects an increase in its staff complement by five to 49.

The JDIC was established in accordance with the Deposit Insurance Act, 1998 and commenced operations on August 31, 1998.

This entity is one of the Financial System Safety Network partners, with a mandate to manage a scheme to provide insurance against the loss of deposits held in insured financial institutions, up to a maximum of $1.2 million per depositor in each institution.

- JIS News

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