{
  "title": "Jamaica: Financial System Stability Assessment",
  "publication": "IMF Staff Country Reports, December 3, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2018/12/03/jamaica-financial-system-stability-assessment-46427",
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  "summary": "The macroeconomic environment has improved, reflecting the authorities’ efforts, supported by an IMF arrangement. Previously, years of high fiscal deficits, public enterprise borrowing, and financial sector bailouts led to rapid government debt accumulation, crowded out private credit, increased fin",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The macroeconomic environment has improved, reflecting the authorities’ efforts, supported by an IMF arrangement.\n- Previously, years of high fiscal deficits, public enterprise borrowing, and financial sector bailouts led to:\n  - rapid government debt accumulation,\n  - crowding out of private credit,\n  - increased financial dollarization,\n  - stifled economic growth.\n- Fiscal discipline has been essential to reduce public debt (to about 100 percent of GDP).\n- With government debt accounting for a sizable share of financial institutions’ assets, falling interest rates on government debt are leading to a search for yield.\n- Entrenched structural obstacles continue to constrain economic growth, including:\n  - high crime,\n  - bureaucratic processes,\n  - insufficient labor force skills,\n  - poor access to finance."
    },
    {
      "heading": "Key findings on financial sector stability and regulation",
      "content": "- Authorities have made good progress in implementing the 2006 FSAP recommendations.\n- Significant advances in the regulatory framework have occurred in several areas:\n  - securities dealers’ activities,\n  - powers to the Bank of Jamaica (BoJ),\n  - payment systems,\n  - introduction of the centralized securities depository.\n- Lagging areas:\n  - crisis management framework,\n  - risk-based supervision work."
    },
    {
      "heading": "Policy implications and priorities",
      "content": "- Maintain fiscal discipline to continue reducing public debt and limit financial-sector vulnerability stemming from large government-debt exposures.\n- Monitor and address search-for-yield behavior in financial institutions as interest rates on government debt fall.\n- Complete remaining FSAP recommendations, prioritizing:\n  - strengthening the crisis management framework,\n  - advancing risk-based supervision capabilities.\n- Address structural constraints to support sustainable growth, including reforms to:\n  - reduce crime,\n  - streamline bureaucratic processes,\n  - enhance labor force skills,\n  - improve access to finance.\n\n---\n\n Content in this bundle\n\n- Country Report\n  - Country Report (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Country Report (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: December 3, 2018",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484387825.002",
    "The macroeconomic environment has improved, reflecting the authorities’ efforts, supported by an IMF arrangement.",
    "Previously, years of high fiscal deficits, public enterprise borrowing, and financial sector bailouts led to:",
    "Fiscal discipline has been essential to reduce public debt (to about 100 percent of GDP).",
    "With government debt accounting for a sizable share of financial institutions’ assets, falling interest rates on government debt are leading to a search for yield.",
    "Entrenched structural obstacles continue to constrain economic growth, including:",
    "Authorities have made good progress in implementing the 2006 FSAP recommendations.",
    "Significant advances in the regulatory framework have occurred in several areas:",
    "Lagging areas:",
    "Maintain fiscal discipline to continue reducing public debt and limit financial-sector vulnerability stemming from large government-debt exposures.",
    "Monitor and address search-for-yield behavior in financial institutions as interest rates on government debt fall.",
    "Complete remaining FSAP recommendations, prioritizing:",
    "Address structural constraints to support sustainable growth, including reforms to:",
    "**Country Report**"
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