The recently concluded Financial Systems Stability Assessment (FSSA) report on the Jamaican financial sector expressed ‘cautious optimism’ in the national outlook.
That’s according to Minister without Portfolio in the Ministry of Finance and the Public Service, Fayval Williams.
Minister Williams, who spoke on Wednesday, December 5, at a post-Cabinet press briefing at Jamaica House, St. Andrew, said that the findings of the report, conducted by the Executive Board of the International Monetary Fund (IMF) further acknowledged fiscal discipline as a major contributor to the reduction of public debt.
The report, a copy of which was obtained by Jamaica Today, stated: “The financial sector has significantly expanded since the last FSSA in 2006. Financial sector assets now stand at about 180 percent of GDP.”
It said: “The financial sector is dominated by large and complex financial conglomerates that span many activities, including banking, insurance, pension fund management, and collective investment fund management.”
In her remarks, Minister Williams asserted that the IMF “commended the authorities for the progress made in the implementation of the reform programme, since their last FSSA in 2006.”
“The financial sector is sizeable and complex, and dominated by large intra- and inter-connected financial conglomerate groups with cross-border linkages. [Jamaica’s] financial sector overall shows broad resilience, and the main risks arise from exposure to natural disasters, the tightening of global financial conditions, and a possible reversal of fiscal discipline driven by reform fatigue,” the report contended.
The FSSA 2018 report further argued that main risks to the financial system arise from exposure to natural disasters (including climate-related disasters), tightening global financial conditions, and economic reform fatigue.
By: Gavin Riley