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Jamaica to introduce new legislation to shield taxpayers from bailing out financial firms

The Government of Jamaica will introduce new legislation to prevent taxpayers from absorbing the cost of rescuing troubled financial firms.
 
Bank of Jamaica Governor Richard Byles, who made the announcement last Thursday, said when an institution fails and the taxpayer has to draw the check, it becomes a lifelong debt around the neck.
 
He added that the legislation is designed to not only make institutions stay safe but to trigger a process that ensures they do not become a liability to the taxpayer when they start showing signs of weakness. 
 
The legislation is expected to form part of the twin peaks reform programme that will make the central bank the regulator of all financial institutions, including insurance firms, investment houses, and fund managers, and reposition the Financial Services Commission as an overseer of market conduct and consumer protection.


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