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The Bank of Jamaica issued this Standard of Sound Practice to mandate that Deposit-Taking Institutions maintain a Liquidity Coverage Ratio of at least 100% to ensure resilience against 30-day liquidity stress scenarios. The framework introduces an early warning threshold of 120% for the Jamaican Dollar equivalent LCR, requiring institutions to hold additional high-quality liquid assets above the minimum requirement. Compliance is enforced through mandatory liquidity restoration plans and the suspension of discretionary distributions if the ratio falls below the regulatory minimum.
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