Jamaica : Financial Sector Assessment
Jamaica has experienced 30 years of low economic growth and high fiscal deficits, with a significant impact on the development of the financial sector. As part of the overall growth and competitiveness reform agenda, the authorities have embarked o...
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| Language: | English en_US |
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Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/05/24458895/jamaica-financial-sector-assessment http://hdl.handle.net/10986/21870 |
| Summary: | Jamaica has experienced 30 years of low
economic growth and high fiscal deficits, with a significant
impact on the development of the financial sector. As part
of the overall growth and competitiveness reform agenda, the
authorities have embarked on ambitious financial sector
legislation reforms to address weaknesses. Lack of access to
credit and equity constrain Micro, Small and Medium Sized
Enterprise (MSME) operations and growth, and ultimately
their contribution to the economy. High interest rates and
low penetration of credit to households and MSMEs can be
explained by high credit risk as a result of high
information asymmetries in the market, as well as limited
competition in the banking sector. The authorities should
complete the establishment of a regulatory and supervisory
framework for deposit-taking institutions proportionate to
the risks and the activities they undertake. The impact of
public policies has been limited and programs on housing,
MSME finance, and agriculture finance would be welcomed to
address market gaps, in support of financial inclusion. The
financial inclusion agenda also requires a comprehensive
strategy on consumer protection regulation and supervision. |
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