BOJ To Assume Licensing Responsibility For FHCs

In a major regulatory step, the Bank of Jamaica, BOJ will be undertaking the licensing of all Financial Holding Companies, FHCs.

The move is one of the first actions taken by the BOJ as it transitions into a new, expanded role as the country’s sole financial regulator.

This will give it oversight of both Deposit and Non-Deposit taking institutions.

In a statement on Wednesday the BOJ says the licensing regime will improve consolidated supervision of financial groups.

To date the Bank has licensed two FHCs, NCB Financial Group Limited and JN Financial Group Limited.

The Bank says its supervisory committee, has already issued rules for the licensing of FHCs.

It says every company intending to function as an FHC is now required to apply for a licence.

In applying for a license, due diligence will be required on an FHC’s corporate governance and internal control arrangements, financial strength and resources.