## Jamaica: Technical Assistance Report-Systemic Risk Monitoring

_Technical Assistance Reports, November 1, 2024_

## Source details

**Canonical URL:** [Jamaica: Technical Assistance Report-Systemic Risk Monitoring](https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/11/01/jamaica-technical-assistance-report-systemic-risk-monitoring-556876)

## Other formats

- [Markdown version](/en/publications/technical-assistance-reports/issues/2024/11/01/jamaica-technical-assistance-report-systemic-risk-monitoring-556876/index.md)
- [Structured JSON version](/en/publications/technical-assistance-reports/issues/2024/11/01/jamaica-technical-assistance-report-systemic-risk-monitoring-556876/index.json)
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## Bibliographic details
- Published: November 1, 2024
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798400290442.019

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### Mission objectives and scope
- Aim: build capacity to enhance financial stability analyses and assessments at the Bank of Jamaica (BOJ).
- Reviewed the latest available Financial Stability Report (FSR) and the BOJ analytical toolkit.
- Assisted BOJ in estimating sectoral credit risk models to enhance the forward-looking element of its financial stability assessment.
- Explained the Bayesian Model Averaging (BMA) approach and provided initial estimates for five sectoral credit risk models.

### Sectoral credit risk models (initial estimates)
- Mortgages to households
- Personal loans
- Corporate loans for tourism
- Corporate loans for construction
- Other corporate loans

### Analytical topics covered
- Financial stability indicators
- Credit risk
- Stress testing
- Insurance and pension balance sheets
- Climate risk
- Interconnectedness
- Contagion risk

### Key findings and analytical conclusions
- The mission concluded that financial stability should be regarded as equally important as monetary policy and supervision.
- Emphasis on enhancing the forward-looking element of financial stability assessment through sectoral credit risk modeling using BMA.
- Highlighted the importance of improving analyses of non-bank financial sector actors.
- Recommended regular reporting on emerging risks, specifically climate and cyber risks.

### Recommendations (FSR, methodology, communication, data)
- Prepare a detailed production plan for the Financial Stability Report (FSR).
- Develop a comprehensive communication strategy for internal and external stakeholders.
- Organize all data in a single data warehouse to support the financial stability analytical toolkit.
- Advance methodological work on the financial stability analytical toolkit (including BMA-based sectoral credit risk models).
- Improve non-bank analyses and establish regular reporting on emerging risks (climate, cyber).

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## Content in this bundle

- **tarea2024090-print-pdf**
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_Source: https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/11/01/jamaica-technical-assistance-report-systemic-risk-monitoring-556876_