The International Monetary Fund (IMF) is pressing the Bank of Jamaica (BOJ) to strengthen the supervision of financial conglomerates to reduce the risk their subsidiaries pose to the group and other financial entities.
The IMF, in its latest assessment of Jamaica’s economy, said while financial institutions in Jamaica are well capitalised, “risks arise from concentrated ownership, related party and large group exposures, and off balance sheet positions”.
Regulatory authorities across the world are always in danger of falling behind the growth in the financial sector and the push appears to align with the requirement that the regulators stay one step ahead of the game.
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