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Deposit Insurance Fund Grows to $9. 24 billion

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The Deposit Insurance Fund had a balance of $9.24 billion as at March 2012, an increase of $1.3 billion or 17.19 per cent above the $7. 89 billion of the previous year.

This is according to the 2011/2012 annual report of the Jamaica Deposit Insurance Corporation (JDIC), which was tabled by Finance and Planning Minister, Dr. Peter Phillips on Tuesday, January 29, in the House of Representatives.

The report further noted that the balance represented 4.1 per cent of insured deposits in the banking system. It was noted that the fund continued to grow as there was no bank failure and no call on the resources.

Consistent with the JDIC’s investment policy, the funds collected were invested in Government securities comprised of fixed and variable rate instruments.

The JDIC was established by the Government of Jamaica on August 31, 1998 to protect depositors and promote stability and confidence in Jamaica’s financial system.

Emerging at an important juncture in the development of the country’s financial structure, it became the latest plank in strengthening the sector’s regulatory framework.

The Corporation’s primary objective is to establish and manage a Deposit Insurance Scheme to protect depositors from loss, up to a specified limit.

Its main goals are to provide the highest level of coverage possible to small depositors; restore and maintain confidence in deposit-taking institutions and by extension, contribute to stability and confidence in the nation’s financial sector. The Corporation also provides a clearly defined system for dealing with problems, which may arise in insured financial institutions.

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Written by jamarch