Jamaica Not Exposed To Issues Affecting Failed US Banks – Dr. Nigel Clarke

• According to an interview on Beyond the Headlines with host Dionne Jackson-Miller, Finance Minister Dr. Nigel Clarke expressed that he does not anticipate any impact on Jamaica relating to the recent developments currently plaguing financial institutions, like Silicon Valley Bank and Signature Bank, in the United States. He added that the government continues to monitor financial sector stability.
• "Financial sector stability is one of the pillars of macroeconomics and something we keep a watchful eye on. At this point in time, I don't see any reason to worry about developments at those financial institutions in the United States, as I don't see any sort of impact from those developments and Jamaica.", the Finance Minister said.
• Clarke also explained that "When authorities begin to raise interest rates in the way they have over the past year, you can get mismatches that lead to problems, some of what we have seen happening in the United States.” He went on to state that “certainly as far as our foreign exporters are concerned, Jamaica has lined up $1.7Bn worth of lines of credit which we don't have to all drawdown. We have these credit lines in place because of my view that we are in uncertain times". 
• Silicon Valley Bank and Signature Bank failed two weeks ago, as hundreds of investors sought to withdraw funds, but their requests could not be met. The US government later intervened, assuring depositors of their funds, taking over management of the banks, and pledging to fire the banks' leadership.
• The Bank of Jamaica (BOJ) continues to supervise deposit-taking institutions (DTIs) and oversee the determination of asset prices, making certain that participants are able to honour promises to settle market transactions and preventing the emergence of systemic settlement risk arising from various financial imbalances that may develop within individual institutions or the system.

(Source: RJR-Beyond the Headlines & BOJ)