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:: JDIC
Operations ::
In fulfilling
its function as deposit insurer, the Corporation’s mandate
extends beyond mere payouts in the wake of failures. Instead,
JDIC works in close collaboration with the Bank
of Jamaica (BOJ), the regulatory and supervisory agency
for deposit taking financial institutions.
It receives
copies of the Bank’s on-site examination reports as well as
all other material information relating to the safety and financial
soundness of insured institutions (policyholders) to facilitate
its own risk assessment. Essentially, the Corporation does not
duplicate BOJ’s supervisory functions.
Central to the
Corporation and the Deposit Insurance Scheme is the Deposit
Insurance Fund. The Fund is capitalized by policyholders’
premiums and is the pool from which payments will be made to
depositors of failed institutions. Premiums are calculated on
total policyholders’ insurable deposits and levied on a flat
rate basis. The Corporation’s modus operandi
is one which ensures it the least possible exposure to loss.
The JDIC’s
main functions are:
- To issue
Policies of Deposit Insurance and levy premiums.
- To manage
the Deposit Insurance Fund, including conservative
investments in low risk and liquid instruments like
Government securities.
- To arrange,
inter alia, for the restructuring of policyholders by merger
with, or acquisition by, other financial institutions.
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