Supervisory Guidance Notes & Reporting Requirements

Standards Of Best Practice

As part of its on-going effort to promote principles of sound corporate governance within the supervised deposit-taking community, the Bank of Jamaica develops and issues to the industry, Standards of Best Practice in critical areas of licensee’s operations. Essentially, these ‘Standards’ provide clear guidance on supervisory expectations of Board and management in implementing appropriate systems to assess, measure, monitor and mitigate risks in identified operational areas. The Standards issued are:

Capital Management (issued 1995)
Credit Risk Management (issued 1995)
Liquidity Risk Management (issued 1995)
Securities Portfolio Risk Management (issued 1995)
Interest Rate Risk Management (issued 1996)
Foreign Exchange Risk Management (issued 1996)
Internal Control (issued 1996)
Real Estate Appraisal Management (issued 1996)
The Management or Investment of Customers' Funds (issued 2002)
Guidance Notes on the Detection and Prevention of Money Laundering & Terrorist Financing Activities (Revised 2009)
Fit and Proper Guidelines (issued 2004) (Updated August 2014)
Country and Transfer Risk (issued 2005)
Standard of Best Practice for Effective Corporate Governance (issued 2008)

Note:

  • • Guidance Notes for the Prevention and Detection of Money Laundering and Terrorism Financing Activities

    The AML/CFT Guidance Notes were comprehensively revised in March 2009 to incorporate the provisions of the Proceeds of Crime Act (POCA) and the POCA (Money Laundering Prevention) Regulations which were promulgated in 2007. The revisions also took into account industry feedback, and in accordance with the requirements of Section 94 (7) of POCA, the completed Guidance Notes were approved by the Ministry of National Security on 22 April 2010 and gazetted.


  • The Management or Investment of Customers’ Funds

    This Standard gives effect to the statutory requirement (in accordance with legislative amendments in 2002) for each licensee to legally separate its deposit-taking activities from its off-balance sheet activities viz. managed funds operations and securities dealing. The Standard outlines the required framework for the orderly process of transfer or disposal of institution’s managed funds operations during the transition process, as well as delineates operational boundaries for separation of Trust facilities that are permissible under the Standard. Separation was deemed necessary to prevent the possible co-mingling of on-balance sheet deposit-taking operations with funds management activities, in light of the exponential growth in reported managed funds operations since 1995 vis-à-vis traditional banking activities, particularly at merchant banks. The separation exercise should mitigate the liquidity and other risks associated with co-mingling as well as facilitate the clear demarcations in supervisory responsibility of the Bank of Jamaica and the Financial Services Commission. As at 30 September 2003, all required separation exercises had been completed.

Prudential Reporting Requirements
Consistent with the Bank of Jamaica’s prudential reporting requirement regime, and in order to facilitate ease of data collection and compilation, specific schedules and returns have been developed and circulated, along with pertinent Explanatory Notes to the industry. (The Central Bank has also made available to the industry a browser based application to enable the electronic submission of the returns) These returns along with their reporting frequency are detailed in the table below.

Prudential and Other Return Data Required To Be Submitted By Licensed Deposit-Taking Institutions to the Bank of Jamaica

 
RETURN NAME REPORTING FREQUENCY INSTITUTION TYPE

1

Balance Sheet and Supplementary Information

Weekly

Commercial Banks

2

Claims on and Deposits of Selected and Other Public Entities

Weekly

 

Commercial Banks

3

Return of Foreign Currency Deposits

Weekly

Commercial Banks

4

Balance Sheet and Supplementary Information

Monthly

Commercial Banks
FIA Licensees
Building Societies

5

Domestic Currency Cash Reserve and Liquid Assets

Monthly

Commercial Banks
FIA Licensees
Building Societies

6

Return of Foreign Currency Cash Reserves and Liquid Assets

Monthly

Commercial Banks
FIA Licensees
Building Societies

7

Profile of Credit and Deposits by Customer Group

Monthly

Commercial Banks
FIA Licensees

8

Sectoral Return of Customers’ Liabilities in respect of Total Loans, Advances and Discounts

Monthly

Commercial Banks
FIA Licensees
Building Societies

9

Sectoral Return of Customers’ Liabilities in respect of Foreign Currency Loans, Advances and Discounts

Monthly

Commercial Banks
FIA Licensees
Building Societies

10

Foreign Currency Assets and Liabilities

Monthly

Commercial Banks
FIA Licensees
Building Societies

11 

Distribution of Deposits by Class and Maturity

Monthly

Commercial Banks
FIA Licensees
Building Societies

12 

Interest Rates Paid on Total Deposits and Loans

Monthly

Commercial Banks
FIA Licensees
Building Societies

13

Interest Rates Paid on Foreign Currency Deposits and Loans

Monthly

Commercial Banks
FIA Licensees
Building Societies

14

Instalment Credit

Monthly

Commercial Banks
FIA Licensees

15

Analysis of Foreign Currency Deposit Flows

Monthly

Commercial Banks
FIA Licensees
Building Societies

16

Claims on and Deposits of Selected and Other Public Entities

Monthly

 

Commercial Banks
FIA Licensees
Building Societies

17

Foreign Currency Claims on and Deposits of Selected and Other Public Entities

Monthly

Commercial Banks
FIA Licensees
Building Societies

18

Update on Credits and Investments Exceeding Section 13 Limits

Monthly

Commercial Banks
FIA Licensees
Building Societies

19

Renegotiated Facilities

Monthly

Commercial Banks
FIA Licensees
Building Societies

20

Earnings and Expenditure

Quarterly
&
Annual

Commercial Banks
FIA Licensees
Building Societies

21

Connected Persons Exposure

Quarterly

Commercial Banks
FIA Licensees
Building Societies

22

Return of Quarterly Financing for Fixed Capital Investment

Quarterly

Commercial Banks
FIA Licensees

23

Details of Past Due Loans

Quarterly

Commercial Banks
FIA Licensees
Building Societies

24

Maturity Profile of Financial Assets and Liabilities

Quarterly

Commercial Banks
FIA Licensees
Building Societies

25

Breakdown of New Mortgage Advances

Quarterly

Building Societies

26

Sectoral Profile of Past Due Loans

Quarterly

Commercial Banks
FIA Licensees
Building Societies

27

Capital Adequacy

Quarterly

Commercial Banks
FIA Licensees
Building Societies

28

Repricing Gap Analysis

Quarterly

Commercial Banks
FIA Licensees
Building Societies

29

Customer Concentrations

Quarterly

Commercial Banks
FIA Licensees
Building Societies

30

Investment Profile

Quarterly

Commercial Banks
FIA Licensees
Building Societies

31

Return of Branch Information

Annual

Commercial Banks
FIA Licensees
Building Societies

32

Return of Land Acquired in the Satisfaction of Debts

Annual

Commercial Banks
FIA Licensees
Building Societies

33

Return of Unclaimed Balances

Annual

Commercial Banks
FIA Licensees
Building Societies

34

Annual Questionnaire

Annual

Commercial Banks
FIA Licenses
Building Societies




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