Overview of Banking, Pension and Asset Management Sectors
Essay Preview: Overview of Banking, Pension and Asset Management Sectors
Report this essay
Competitive Landscape of the Financial Services IndustryComposition and Performance of the Financial Services IndustryThe Jamaican financial services industry is one of the most critical sectors to the island. The industry consists of over 470 registered and licensed companies operating as: Banks Building societies Securities dealers/ asset and wealth managersPension fund managers and administratorsInsurance companies, Finance CompaniesCredit unions, et al.Deposit taking entities are regulated by the Bank of Jamaica (BOJ) while other institutions such as securities dealers and insurance companies are governed by the Financial Services Commission (FSC). The sector employs over 26,000 workers and is amongst the top employing sectors in Jamaica. It also contributes historically, approximately 11.0% of the country’s gross domestic product and is an important facilitator of economic activity for the other economic sectors.The financial services industry is dominated by commercial banks, which control approximately 76% of the assets in the industry, followed by building societies that control 22% of the assets in the financial system. Total assets in the system (commercial banks, FIA Institutions and building societies) as at December 2013 amounted to J$1,059,085 million. Table 2 Total Assets of Financial Institutions, 2011-2013, Source: ESSJ 2013 and the BOJ2011201220132014 JuneInstitutionTotal Assets ($Millions)% of TotalTotal Assets ($Millions)% of TotalTotal Assets ($Millions)% of TotalTotal Assets ($Millions)% of Total Commercial banks 608,382 74% 656,453 75% 734,996 76%803,85176%FIA Institutions 21,694 3% 21,595 2% 25,358 3%30,3753%Building societies 186,924 23% 202,913 23% 212,758 22%224,86021%Total 816,700 100% 880,961 100% 973,112 100%1,059,085100%
Developments in the Financial Services IndustryThere was an exchange initiative launched in February 2013 known as the National Debt Exchange. Under the programme, $860 billion of domestic debt instruments were exchanged for longer term instruments with lower coupon rates. This exchange impacted the profitability of the financial sector and resulted in institutions realigning their portfolios with US$ denominated holdings. The years 2013 and 2014 also saw a policy shift in the Jamaica’s financial sector by way of the drafting of legislation. Acts passed during the period included:Banking Services Act, 2014The Financial Administration and Audit (Amendment) Act, 2014Securities (Amendment) Act, 2013 The Pensions (Superannuation Fund and Retirement Schemes) (Validation and Amendment) Act, 2013 The Companies (Amendment) Act, 2013 These legislative changes were aimed at formulating policies to encourage economic development as well as industry protection. The legislative changes also strengthened the powers of regulatory oversight bodies with a view to achieve macroeconomic stability. This following section provides a macro look at the banking, securities and pension sectors, given their relevance to the proposed operations of JNFM 2.0 – investment banking (including loans), securities dealing and pension administration and management.Overview of Banking IndustryThe Jamaican banking industry consists of thirteen (12) players: six (6) commercial banks, four (4) building societies and two (2) merchant banks. The number of commercial banks was reduced to six, following the acquisition of RBC Jamaica Limited by Sagicor Group Jamaica, for which regulatory approval was received in June 2014.The commercial banking sector is dominated by NCB and BNS, both of which hold 74.2% of total banking assets and 74.7% of deposits held by commercial banks, as shown in table. Sagicor Bank Jamaica holds third position by market share of asset and deposits. It moved up the scale following the acquisition of RBC Jamaica by the Sagicor Group.Table 3 Assets and Deposits of Commercial Banks (March 2014)Commercial BanksAssets (J$M))Market share of Assets Deposits (J$M)Market share of Deposits NCB332,85442.9%188,46538.6%BNS242,50031.3%176,53536.1%SBJ[1]76,9239.9%53,71811.0%FCIB66,2828.6%35,8317.3%FGB38,1724.9%22,3604.6%CBNA17,9942.32%11,2952.3%Total774,725100.0%488,204100.0%
Download as:
txt (25.3 Kb)
pdf (428.4 Kb)
docx (213.3 Kb)
Continue for 15 more pages »
Read Full Essay
Only available on Essays24.com
Citation Generator
MLA 7
CHICAGO
(2017, 05). Overview of Banking, Pension and Asset Management Sectors. Essays24.com. Retrieved 05, 2017, from
“Overview of Banking, Pension and Asset Management Sectors” Essays24.com. 05 2017. 2017. 05 2017 <
"Overview of Banking, Pension and Asset Management Sectors." Essays24.com. Essays24.com, 05 2017. Web. 05 2017. <
"Overview of Banking, Pension and Asset Management Sectors." Essays24.com. 05, 2017. Accessed 05, 2017.
Similar Essays
Managing Security Issues Of Internet Banking
Managing security issues of Internet Banking: Towards the future of the banking industry The banking industry has been a target for crime since the beginning
3,183 Words | 13 Pages
Bank Management
Ch.3:Analyzing Bank Performance: Using the UBPR- Questions 1,2,4,7 1). The major categories involved in bank assets include 1-Cash & due from banks, 2-Investment Securities, 3-Loans,
518 Words | 3 Pages
Evaluating Best Practices: Managing Quality, Speed, Flexibility And Information As An Asset
Evaluating Best Practices: Managing Quality, Speed, Flexibility and Information as an Asset Contemporary Issues in Leadership and Management / MM 590 October 16, 2006 Managing
2,948 Words | 12 Pages
Overview Of Management
Kudler Fine Foods - Overview of Management Kudler Fine Foods is an upscale specialty food store located in San Diego, California. What started out as
1,757 Words | 8 Pages
Overview Of Management
Overview of Management Introduction Kudler Fine Foods is the result of Kathy Kudlers vision to make a one-stop gourmet food shop that offers a wide
865 Words | 4 Pages
Pakistans Banking Sectors Industry Analysis
PAKISTANS BANKING SECTOR INDUSTRY ANALYSIS: Banks play very important role in the economy of a country and Pakistan is no exemption. Banks in Pakistan account
1,295 Words | 6 Pages
Overview Of Management
Overview of Management University of Phoenix MBA 502: Managing the Business Enterprise November 28, 2007 Introduction Founded in 1998 by Kathy Kudler, Kudler Fine Foods
1,503 Words | 7 Pages
An Overview Of The Canadian Financial-Services Sector: Banking Industry
An Overview of the Canadian Financial-Services Sector: Banking Industry What is a financial intermediary? A financial intermediary is an organization that raises money from investors
3,491 Words | 14 Pages
Similar Topics
Managing Business Organization
Bank Marketing
Beginning C Bank Statement
Mcdonalds Marketing Management
Planning Management Control System Capital
Global Trends Techonology Management
Browse 74,000+ Papers and Essays
Join 431,000+ Other Members
High Quality Documents
Sign up
© 2010–2020 Essays24.com
Browse Essays
Join now!
Login
Search
Support
Site Map
Privacy Policy
Terms of Service
Facebook