BOJ seeks bank recovery plans that can work in a crisis

Bank of Jamaica is consulting on a recovery-planning standard for deposit-taking institutions and financial holding companies licensed under the Banking Services Act. Its October 2026 paper seeks plans capable of restoring an institution’s viability during severe stress while it remains a going concern. The proposals are open for comment on or before 29 January 2027; the paper says feedback will inform BOJ’s final approach. It does not establish that the proposed standard is already operative.

The draft would connect recovery planning to governance, funding, business continuity and operational resilience. Boards would approve plans, while institutions would assess whether proposed responses could actually be executed: who could authorise them, which resources would be available, and which legal or operational obstacles might intervene. Testing would examine execution rather than documents alone. The proposed approach also adjusts testing and supervisory intensity to an institution’s characteristics.

An indicator crossing a threshold would require prompt assessment and escalation, but would not itself compel activation of the plan or a particular recovery measure. Material breaches would also require immediate communication to the supervisor. Decisions would depend on the institution’s condition and the nature of the stress. The paper separates institution-led recovery from resolution when recovery fails or the institution becomes non-viable; it does not promise extraordinary public support.

Group membership would not make a foreign parent’s resources automatically available. The draft would require credible analysis of local needs, transfer restrictions and dependencies. A parent group plan could be accepted in place of a separate local plan only where the specified Jamaican coverage, governance and information conditions are met. Where that test is not met, the supervisor could require supplementary local documentation or a standalone plan. These remain proposed arrangements, not findings about any particular bank.

Based on the full Bank of Jamaica consultation and its official listing. The source identifies October 2026 but does not establish an exact publication day. The feedback deadline is not commencement. This report describes the proposal as checked on 1 November 2026; it does not certify the full existing law or any later final standard.