Regulatory Alerts2023-01-01
Consultation Paper on the Capital Conservation Buffer (May 2023)
The Bank of Jamaica proposes implementing a 2.5% Capital Conservation Buffer (CCB) for deposit-taking institutions and financial holding companies to enhance financial system resilience against economic shocks. The framework mandates that the buffer consist solely of Common Equity Tier 1 capital and introduces a five-year phase-in schedule starting in January 2024, culminating in full implementation by January 2029. Additionally, the proposal establishes restrictions on dividend distributions and other payouts once an institution's capital levels fall within the buffer range, requiring prior supervisory approval for any distributions.
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