The banking system in Jamaica is diversified and competitive, offering a wide range of services to business clients. Foreign currencies can be bought and sold at commercial banks and through other authorised dealers. Jamaica is not, however, an international financial centre and does not have legislation permitting offshore banking.
Central bank
The Bank of Jamaica is responsible for the execution of monetary and regulatory policy. It has supervisory responsibility for commercial banks, financial institutions, building societies and Industrial and Provident Societies.
Commercial banks
There are several well established commercial banks in Jamaica. Each bank offers full service banking and foreign investors can borrow money from local commercial banks for investments in Jamaica.
Trust companies
Several of the commercial banks own and operate trust companies.
Cambios
Cambios (foreign exchange bureaus) are operated islandwide to facilitate the conversion of foreign currency, especially in the tourist areas. The operation of the cambios is governed by the guidelines established by the Bank of Jamaica.
Cambio operators can purchase foreign currency traveler's cheques in unlimited amounts, but there is a limitation on the purchase of drafts and money orders in any one transaction. Cash purchases are also restricted. Licencees can sell only in cash at prevailing market rates.
Other financial institutions
Jamaica has a number of well-established building societies, credit unions, and other savings and loan institutions, as well as a vibrant insurance industry that has close ties to banking and other financing institutions.
Specialised financial institutions
A range of specialised financial institutions operate in Jamaica. These include the following.
| 1. | The government owned Export-Import Bank of Jamaica Limited was established to promote trade by providing insurance and financing services to local exporters. |
2. | The National Investment Bank of Jamaica, which holds government shares in a number of entities and has some responsibility for the government's privatisation program. | 3. | The Development Bank of Jamaica Limited provides financing for viable projects in agriculture, industry, manufacturing and tourism. Lending is provided through approved financial institutions, including commercial and merchant banks. | 4. | The National Housing Trust is a public sector institution that mobilizes compulsory savings from employees and employers to provide contributing employees with housing mortgages below the market rate. | 5. | The Jamaica Mortgage Bank Limited and the Caribbean Housing Finance Corporation are public sector companies providing finance for the housing sector. |
Investment institutions
Jamaica has a number of specialized investment institutions, (unit trusts etc.) which direct their funds mainly into stock market, real estate and government securities. Insurance companies in Jamaica play a major role as institutional investors, investing pension funds that they manage as well as other funds.
