Jamaica: The Banking Act

Regulation of banking institutions in Jamaica
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This paper is the 'Banking Act' as legislated by the Government of Jamaica and amended in 1992. It contains statutory provisions for carrying out of banking services business in Jamaica.Sections I to VII of the paper discuss the following:

  • Interpretation of the application of this Act and definitions of common terms used;
  • The requirements for obtaining a license to operate banking business;
  • Guidelines for capital adequacy norms that are integral to carrying out such business;
  • Certain restrictions on entities that are into this business;
  • Guidelines for the minimum cash reserve and liquid assets that a bank has to maintain against its overall liabilities;
  • The principles for accounting standards and auditing that need to be followed;
  • Issues related to regulation of entities falling under this law.

Further, the other sections highlight the following issues:

  • Regulations against unsafe practices;
  • Supervision and examination of banks;
  • Winding up, amalgamation and transfer of assets of banks.

The paper concludes with a chapter containing general provisions that deal with other significant issues.

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