Regulatory Alerts2022-01-01
Standard of Sound Practice on Minimum Capital Requirements for Licensees under the Banking Services Act
The Bank of Jamaica issued this Standard of Sound Practice to establish minimum regulatory capital requirements for deposit-taking institutions and financial holding companies licensed under the Banking Services Act. The framework aligns domestic prudential supervision with Basel III standards by defining eligible regulatory capital components, prescribing standardized risk-weighted asset calculations for credit, market, and operational risks, and mandating consolidated group-level capital oversight. Licensees must comply with these enhanced capital adequacy benchmarks and maintain parallel reporting during a mandatory one-year transitional period to strengthen operational capacity.
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