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SECTION 8: BUSINESS FINANCE (cont’d)
SPECIFIC OBJECTIVES
Students should be able to:
3. describe the role and functions of
financial regulatory bodies;
4. describe the relationship between
financial institutions and
regulatory bodies;
CXC 08/G/SYLL 17
CONTENT
(a) Financial Regulatory Bodies are
government organisations such as:
(i) Central Bank.
(ii) Jamaica Deposit Insurance
Company (JDIC).
(iii) Financial Services Commission
(FSC).
(b) Role of regulatory bodies:
- To monitor, control and guide
various industry sectors in order
to protect consumers.
(c) Functions of regulatory bodies:
- To enforce regulations and
licenses of various financial
activities, including depository,
lending, collection and money
transmission activities.
The regulatory role:
(a) Central Banks – Ways in which a
Central Bank may regulate
commercial banks:
(i) variations in the liquid assets
ratio;
(ii) vary or adjust the bank rate;
and,
(iii) changing the minimum
reserve requirements.
(b) Financial Services Commissions.
(c) Supervisor of Insurance.
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