The Bank of Jamaica says domestic financial markets remained generally stable during 2024.
It says the domestic stock market showed a modest improvement relative to the prior year.
Similarly, the foreign exchange and bond markets exhibited relative stability, with bond yields fluctuating within a narrow range.
The Bank says the profitability of deposit taking institutions declined over the period, mainly due to higher operating expenses.
Despite this, the BOJ says financial institutions maintained strong capital, asset quality and liquidity positions.
Similarly, it says the securities dealers, and the insurance sectors, maintained capital and liquidity levels well above their regulatory requirements, despite facing constrained profitability.
The central bank is again warning there is also some risk to financial stability from policy uncertainty in the United States and heightened geopolitical tensions.
It says this risk could lead to a pause or reversal in the monetary policy stance in major economies and, potentially, in Jamaica.
The Bank says these risks have the potential to create economic fallout.
