Jersey: Financial Sector Assessment Program Update: Financial System Stability Assessment
IMF Staff Country Reports, September 14, 2009
Source details
- Canonical URL
- Jersey: Financial Sector Assessment Program Update: Financial System Stability Assessment
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Bibliographic details
- Published: September 14, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451820256.002
Main findings
- Most banks in Jersey are branches or subsidiaries of large international groups, to which they provide financing.
- The close relationship between Jersey banks and their parent international groups reduces risk in normal times, given the groups’ ability to support their Jersey operations.
- The Jersey Financial Services Commission has significantly reformed the regulatory framework of funds, mainly to make Jersey funds more attractive to institutional investors.
- A key challenge in insurance supervision is to maintain effective and proportionate regulation of a small sector with limited insurance risk.
Analysis and implications
- Banking structure: the dominance of branches and subsidiaries of large international groups implies that systemic stability is closely linked to the financial health and support capacity of parent groups.
- Fund sector reforms: regulatory changes aim to enhance Jersey’s competitiveness for institutional investment, suggesting a strategic focus on fund attractiveness and alignment with investor expectations.
- Insurance supervision challenge: supervisory frameworks must balance effectiveness and proportionality given the small size and limited risk profile of the local insurance sector.
Thematic subjects and keywords
- Subjects: Banking; Economic sectors; Financial institutions; Financial sector; Financial Sector Assessment Program; Financial sector policy and analysis; Financial services; Insurance companies; Loans
- Keywords: bank DCS; bank insolvency regime; bank loan; CR; credit risk; Financial sector; Financial Sector Assessment Program; funding gap; funding gap.; Global; Insurance companies; ISCR; Jersey affiliate; Jersey bank; Jersey subsidiary; Loans; Middle East; No. bank; parent bank; pound sterling; risk model; yield curve
International Monetary Fund. Jersey: Financial Sector Assessment Program Update: Financial System Stability Assessment.