JDIC says member institutions remain solvent

JDIC says member institutions remain solvent

Friday, September 18, 2020

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KINGSTON, Jamaica – Chairperson of the Jamaica Deposit Insurance Corporation (JDIC), Myrtle Halsall, says all JDIC-insured financial institutions remain solvent and adequately capitalised, despite the economic impact of the coronavirus (COVID-19) pandemic.

“The JDIC continues its collaboration with the regulatory authorities to proactively monitor the system and work purposefully to ensure that it stands ready to respond to any impact on member institutions,” she said.

Halsall was addressing the JDIC's digital town hall yesterday to outline details of the increase in the deposit insurance coverage limit for member institutions and launch the supporting public awareness campaign dubbed 'You've Been Upgraded'.

The deposit insurance coverage limit has doubled from $600,000 per depositor per institution to $1.2 million, effective August 31, 2020.

The coverage applies to persons holding individual, joint and business accounts in commercial and merchant banks and building societies, who are guaranteed coverage for deposits of up to $1.2 million.

Halsall said consequent on the increase, approximately 97 per cent of depositors with accounts in the entity's 11-member financial institutions, comprising eight commercial banks, two building societies, and one merchant bank, are now fully covered.

She advised that since the establishment of the deposit insurance scheme and the JDIC in 1998, no claim has been made against the deposit insurance fund, which now stands at $26 billion, as “no bank has failed”.

Halsall said this has allowed the JDIC to continuously enhance and strengthen its resolution capabilities and capacity to respond in the event that member institutions encounter challenges.

She noted that the JDIC has implemented reforms aimed at enhancing the legal framework for the resolution of issues impacting deposit-taking institutions and has maintained a robust deposit reimbursement framework, inclusive of fully automated processes.

The entity continues to work closely with the Ministry of Finance and the Public Service, Bank of Jamaica, and the Financial Services Commission to develop legislation aimed at strengthening the capacity of the regulatory authorities to take orderly and timely action in resolving non-viable regulated financial institutions.

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