CARIBBEAN REGIONAL TECHNICAL ASSISTANCE CENTER SUPPORTING ECONOMIC PERFORMANCE IN THE CARIBBEAN BY STRENGTHENING CAPACITY QUARTERLY BULLETIN: JANUARY – MARCH 2021

MAIN HIGHLIGHTS: Financial Sector Supervision and Regulation

Ralph C. Lewars, Financial Sector Supervision and Regulation Email: [email protected]

Belize - CARTAC provided follow-up Technical Assistance (TA) to the of on the draft Securities Bill prepared in late FY 20. The Bill is scheduled for submission to the Parliament of Belize for passage before the end of 2021.

Curaçao and St. Maarten - At the request of the Central Bank of Curacao and St. Maarten (CBvCSM), a TA mission assessed the practicality and appropriateness of developing and implementing a harmonized risk assessment/rating system for assessing the risk profile of banks, insurance firms, asset management and trust companies. The mission team recommended that it is practical and feasible to develop and implement a harmonized risk rating or assessment methodology to support the Central Bank’s recently introduced Risk-Focused Surveillance Framework (RFSF). Follow-up TA planned for FY 22

Grenada - Conducted follow-up capacity building risk-based supervision (RBS) workshop for the benefit of insurance and credit union supervisors at the Authority for the Regulation of Financial Institutions (GARFIN). The workshop provided guidance on how to apply the RBS Framework at two pilot institutions (an insurer and a credit union) during the remainder of 2021. The mission also provided technical assistance on strengthening operational procedures for RBS implementation and conducting risk assessments; and discussed and provide examples of key supervisory competencies (technical and behavioral) required to effectively conduct risk-based supervision.

Guyana - CARTAC reviewed and provided feedback on several risk management guidelines (Credit Risk Management; Operational Risk Management; Market Risk Management; Risk in the Banking Book (IRRBB); Liquidity Risk Management; and Concentration Risk) and Stress Testing prepared by staff within the Bank Supervision Department (BSD) of the Bank of (BOG). The mission also conducted a 2-day workshop to discuss key observations and recommendations for enhancement to the draft versions of the guidelines, and the importance of proportionality (based on size, complexity, and business models) in their application across the banking sector in Guyana.

Jamaica - CARTAC provided follow-up technical assistance to the Bank of on Basel II/III - Pillar 1 implementation. The mission focused exclusively on training select staff within the Financial Institutions Supervisory Division (FISD) of the Bank of Jamaica (BOJ) on completing and interpreting the results from the Basel II/III Pillar 1 capital adequacy reporting templates to facilitate successful roll-out. Key objectives of the workshop were to ensure that select members of the FISD staff are fully equipped to train other members of the Division and representatives from the industry and being able to respond to queries and/or questions from the industry on completing the different templates. The importance of corroborating the adequacy of information submitted via other prudential reports was also emphasized as well as any finding or results from internal reviews of regulatory reporting.

CARIBBEAN REGIONAL TECHNICAL ASSISTANCE CENTER SUPPORTING ECONOMIC PERFORMANCE IN THE CARIBBEAN BY STRENGTHENING CAPACITY QUARTERLY BULLETIN: JANUARY – MARCH 2021

Regional Activities

• Conducted capacity building workshop on the Regulation and Supervision of Credit Unions (CUs) for the benefit of supervisors from the Financial Services Commission (TCI-FSC), and the Financial Services Commission (A-FSC). As an outcome from the training provided, the A-FSC will revise its draft Cooperative Societies Act to clarify sections related to required capital for credit unions. TCI-FSC will revise its licensing criteria for credit unions and prudential reporting forms/templates. • Supervisory review of the actuarial liabilities of Life Insurance Companies: 72 insurance supervisors from the region participated in the workshop. The workshop was designed to provide foundational elements on actuarial considerations in supervisory assessments, including the drivers and impacts of actuarial risk; and strengthening capacity and operational procedures for supervisory review of the methodologies and assumptions used to determine the value of insurance liabilities (actuarial).

TA REPORTS (Jan to Mar 2021) Area Country Title FSS-BSR Reorganization of the Financial Services Commission FSS-BSR Liquidity Risk Management (Supervisory Review and Assessment) FSS-BSR Regional-CARTAC Consolidated Risk-based Supervision of (major home and host Financial Groups and Conglomerates supervisors - , Jamaica, Trinidad and Tobago, Anguilla, and Curacao and St Maarten)