The maintenance of financial stability by the Bank of Jamaica (BOJ) primarily concerns the safeguard of conditions which ensure the proper and efficient functioning of the financial system and consequently, the promotion of real economic activity. The financial system consists directly of three basic financial components: institutions, markets and infrastructure. These components interact with each other as well as with other indirect participants in the system – such as households, non-financial corporations and the public sector – to allocate economic resources and redistribute financial risks.
The Financial Stability Report 2014 provides an assessment of the main financial developments, trends and vulnerabilities influencing the stability of Jamaica’s financial system during the year. The Report is divided into six sections and covers the following topics:
1. Overall Assessment of Financial Stability
2. Macro-financial Risks
3. Financial System Developments
4. Financial System Sectoral Exposures
5. Risk Assessment of the Financial System
6. Payment System Developments