According to a Bank of Jamaica (BOJ) press release, the bank is closely monitoring the current impact of the novel COVID-19 virus pandemic on the global and domestic financial system.
The release noted that although the country’s economy has been impacted negatively by the coronavirus, the BOJ has indicated that the fundamentals of Jamaica’s “financial system continue to be strong with licensee’s capital and liquidity exceeding current regulatory requirements and established prudential norms.”
Notwithstanding the current effects of the pandemic on normal business activities, BOJ noted that the fundamentals of the Jamaican financial system continue to be strong with licensee’s capital and liquidity exceeding current regulatory requirements and established prudential norms.
Additionally, it stated that it stands ready to provide liquidity and other support necessary to ensure that financial institutions can continue to give credit and other financial services to the public, limit the potential negative economic repercussions on the lives of ordinary Jamaicans and preserve confidence in the Jamaican financial system.
Against this background, and with a view to conserving capital and further enhancing licensees’ lending and loss-absorption capacities, the Bank of Jamaica, also stated, “after consultation with the boards of the financial holding company (“FHC”) designates, wishes to confirm the mutual understanding that FHC designates and deposit-taking institutions (“DTI”) will suspend the distribution of profits by way of declaring dividends in any manner (cash or stock) for the 2020 financial year, until further notice.”
The central bank also posted that it was their understanding that FHC designates and DTIs will similarly postpone the distribution of any unpaid dividends declared for 2019.
Yvad Billings, Readers Bureau, Fellow
Edited by Jesus Chan
Do you want to add feedback to this story?
Please add a comment in the e-mail box below or send email to firstname.lastname@example.org
Like our Facebook page https://www.facebook.com/TheReadersBureau