The Bank of Jamaica (Amendment) Act, 2015 provides for the establishment of a Financial System Stability Committee (FSSC) that serves to make assessments in relation to financial system stability, make recommendations to the BOJ for carrying out its financial system stability mandate as well as help inform the BOJ’s use of macroprudential rules and standards. The fundamental objective of the FSSC will be to review BOJ’s macroprudential risk assessments and make applicable policy recommendations to address any identified risks.

The Financial System Stability Committee fulfils its functions through the guidance of quarterly reports on key aspects of BOJ’s financial system stability assessments.

The FSSC:

  1. reviews BOJ’s macroprudential assessments;
  2. advises on the appropriate macroprudential tools that can be used to manage and/or mitigate the emergence of systemic risks;
  3. help monitor the implementation and transmission of macroprudential tools; and
  4. communicate with the public on the use and impact of tools on the system.
Based on the Amendment, the FSSC should consist of six ex-officio members as well as two members appointed by the Minister of Finance based on the recommendation of the Governor. 

The ex-officio members of the Committee shall be: 
  1. the Governor, who shall be the chairman; 
  2. the Senior Deputy Governor or the Deputy Governor or other senior officer of the Bank, with assigned responsibility for the Bank’s financial system stability mandate; 
  3. the Financial Secretary; 
  4. the Deputy Supervisor of Banks and Financial Institutions; 
  5. the Executive Director of the Financial Services Commission; and 
  6. the Chief Executive Officer of the Jamaica Deposit Insurance Corporation.

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