CARICOM Model Law and Regulations on Deposit Insurance

Closing Date: August 10, 2022
 180 Views



Details:

The Project seeks to –

(i) develop a harmonised legal framework comprising a model deposit insurance Bill and subsidiary regulations; and
(ii) formulate s proposals for a model resolution regime for financial institutions in CARICOM Member States.
The two (2) complementary thematic areas seek to strengthen the financial safety-net architecture and preserve financial stability by providing:

(i) an appropriate legal and regulatory framework which guarantees eligible depositors in the Community with a minimum level of protection against losses due to the failure of a covered financial institution; and
(iii) recommendations for a robust resolution framework to allow for the orderly intervention in, and restructuring of non-viable financial institutions


The Consultants will be required to elaborate and refine the drafting instructions for the Model Law in accord with the standards and best practices set out in the approved CARICOM Policy on Deposit Insurance for the consideration and concurrence of Member States. Where necessary, the Consultants will advise on the further refinement of the standards to address the peculiar circumstances of CARICOM Member States. The
drafting instructions will be used as the basis for the preparation of the Model Law and relevant regulations which would facilitate the harmonisation of the legal and regulatory framework for deposit insurance in Member States.

In the case of the other thematic area, the Consultant will be required to undertake a review of the provisions for the resolution of financial institutions (banking, insurance, securities and other non-bank sectors) in the existing laws in Member States as well as evaluate gaps in the national frameworks. Within the context of this evaluation, the Consultant will advance proposals to bring the domestic regimes in line with the international standards articulated by the FSB and the IADI, taking into account the peculiarities of CARICOM Member States. The proposals for the harmonised resolution regime should address the challenges presented by the failure of financial institutions with cross-border operations given the interconnectedness of the financial sector within the Community and should identify strategies for mitigating cross border contagion risk.

The Consultancy will be executed over a period of eighteen (18) months and will require extensive consultations (on a country-by-country basis and regional consultative meetings) with financial supervisors, deposit insurers, other financial safety-net partners and stakeholders in Member States. Country-specific consultations and data gathering exercises will be conducted in Member States and with regional institutions as agreed by
the Consultant and the Secretariat.

The Consultant will participate in regional consultations and other technical meetings, which will be arranged by the Secretariat in order to build stakeholder consensus on the proposed deposit insurance legislation and proposals for the resolution regime.

Notice expires at 11:59pm on Wednesday August 10th, 2022

Back to top button
Close