The Bank of Jamaica’s Financial Policy Committee says the country’s financial system remains stable up to the end of August. The committee, which met this week to review the financial system’s performance and risks up to end of August 2022, says financial institutions continued to be adequately capitalised, liquid and profitable. The committee also found that asset quality for the banking sector remained stable and below the prudential benchmark. It says systemic risks associated with financial cycles and the system risk exposure in some sectors continued to be moderate. However, macro-financial risk from continued monetary tightening and fears of a global recession have risen. The fears are driven by a surge in, and the uncertain outlook for inflation, the pace of monetary tightening locally and among Jamaica’s main trading partners. The committee says domestic financial institutions are however adequately capitalized to withstand these shocks.
