Opposition calls for reserve fund

The opposition, People’s National Party (PNP), has called for legislation to require all domestic financial institutions to contribute to a reserve fund.



Opposition spokesman on finance Dr. Omar Davies says this is necessary particularly in situations where institutions are threatened by a financial crisis.



The opposition call comes as the Bank of Jamaica (BOJ) announced that it has offered a temporary lending facility to the country’s financial institutions in the wake of the global economic crisis.



The BOJ says the objectives of its intervention are to alleviate any short-term US dollar liquidity needs of domestic financial institutions and to ensure the stability of government’s global bond.



In addition the BOJ says it is seeking to minimize pressures in the domestic foreign exchange market.



Dr. Davies says the opposition welcomes the move by the BOJ.



In the meantime, Dr. Davies says the latest move by the BOJ emphasizes the need for increased collaborations between the BOJ and the Financial Service Commission in monitoring the sector.