IMF wants greater supervision of lending institutions in Jamaica

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imf-christine-lagarde.jpgThe International Monetary Fund (IMF), is urging greater central bank supervision of lending institutions as the government moves to support private credit expansion.

Following it's staff visit this week, the IMF mission team said the reduction in the Cash Reserve Requirement this year and the successive policy rate cuts to 0.75 per cent should support private credit expansion.

However, it said enhanced central bank supervision and risk management practices at lending institutions will be critical to ensure careful assessment of risks to maintain financial stability.

Credit extended to private-sector businesses and households grew by 15.2 per cent over the 12 months to March this year, higher than the 13.4 per cent observed at December 2018 and the 13.8 per cent at March 2018.

The Central Bank has been making policy-rate cuts to increase the pace of expansion in private-sector credit.