Regulatory Alerts1996-01-01
Bank of Jamaica Standards of Sound Business Practices: Interest Rate Risk Management
The Bank of Jamaica issued this 1996 document to establish minimum policies and procedures for financial institutions to prudently manage and control their exposure to interest rate risk. It mandates that institutions implement comprehensive risk management programs featuring clear risk philosophies, explicit exposure limits, and robust measurement techniques such as gap analysis, duration analysis, and simulation models. The framework assigns ultimate oversight responsibility to the Board of Directors for approving policies and ensuring compliance, while requiring management to develop, implement, and report on these controls through regular internal audits.
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