1. Give an overview of the structure of the Jamaica financial system 2. The role of the financial intermediaries in the system 3. The role and importance of institutions such as SSL to the market.
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The financial system in Jamaica has been the subject of much attention since the news broke of the alleged fraud at Stocks and Securities Limited (SSL). The governor of the Bank of Jamaica (BOJ) has been fielding calls from concerned investors, international financial institutions, and even other regional regulators concerning the impact of this situation and the negative media reporting would have on the stability of the financial system in Jamaica and the Caribbean region.
The governor would like to preserve confidence in the financial markets and institutions and has decided to embark on a series of educational “road-shows” where he will address targeted stakeholders such as the American Chamber of Commerce (AMCHAM), investor groups and the media.
1. Give an overview of the structure of the Jamaica financial system
2. The role of the financial intermediaries in the system
3. The role and importance of institutions such as SSL to the market.
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- The financial system in Jamaica has been the subject of much attention since the news broke of the alleged fraud at Stocks and Securities Limited (SSL). The governor of the Bank of Jamaica (BOJ) has been fielding calls from concerned investors, international financial institutions, and even other regional regulators concerning the impact of this situation and the negative media reporting would have on the stability of the financial system in Jamaica and the Caribbean region. The governor would like to preserve confidence in the financial markets and institutions and has decided to embark on a series of educational “road-shows” where he will address targeted stakeholders such as the American Chamber of Commerce (AMCHAM), investor groups and the media. In this regard, the governor has assigned your team of senior professionals employed at the Bank of Jamaica to prepare a presentation slide deck for his address. The impact of this event on the financial system in Jamaica and the wider…The financial system in Jamaica has been the subject of much attention since the news broke of the alleged fraud at Stocks and Securities Limited (SSL). The governor of the Bank of Jamaica (BOJ) has been fielding calls from concerned investors, international financial institutions, and even other regional regulators concerning the impact of this situation and the negative media reporting would have on the stability of the financial system in Jamaica and the Caribbean region.The governor would like to preserve confidence in the financial markets and institutions and has decided to embark on a series of educational “road-shows” where he will address targeted stakeholders such as the American Chamber of Commerce (AMCHAM), investor groups and the media.In this regard, the governor has assigned your team of senior professionals employed at the Bank of Jamaica to prepare a presentation slide deck for his address. • An overview of the structure of the Jamaica financial systemThe role of…The recent collapse of some banks and financial institutions and the merger of others in ghana is proof that the financial system which consists of institutional units and markets that interact, typically in a complex manner, for the purpose of mobilizing funds for investment and providing facilities, including payment systems, for the financing of commercial activity remains unprotected in spite of the the presence of the Regulator and a solid legal system backing it. I)Examine some of the difficulties associated with the financial system and how these challenges have been addressed by the Banks and Specialised Deposit Taking Institutions Act 2016 (Act 930). Are there any novel ways by which some of the challenges may be resolved in your opinion?
- In the 2018 Annual Report of the Securities and Exchange Commission, Ghana, it is stated that “Cryptocurrencies, forex trading, gold collectibles, and other “naked” and “covered” investment schemes were used as underlying instruments to defraud investors. The surveillance system of SEC was able to identify and flag several of such fraudulent investment schemes and quickly alerted the public about them”. Required: What gives the rise of unlicensed financial instruments in the financial system of Ghana? Does the Ghanaian securities’ market have enough regulatory framework to curb the proliferation of Ponzi/Pyramid Schemes in Ghana? Why and why not?The banking crisis in Ghana in recent times has continued the concerns about corporate governance. Elsewhere, both Sarbanes-Oxley Act (US) and the Combined Code (UK) have emphasised the importance of an independent board structure. Explain why agency theorists recommend an independent board structure and with reference to the empirical studies on board structure and firm performance assess the extent to which an independent board helps solve the agency problem. Recommend and justify whether voluntary based or rule-based approach to corporate governance is appropriate for Ghana. Is corporate governance failure a contributing factor to the collapse of the financial institutions in the recent crisis in Ghana?Which of the following is true about financial institutions in the United States compared to those in other countries? (a). Most U.S. intermediaries are allowed to engage in nonbanking (nonfinancial) business activities, whereas the nonbanking activities of foreign financial institutions have been severely restricted until recently (b) .US, financial institutions have been much more heavily regulated than their foreign counterparts with regard to expansion (branching) and the services that could be offered (c).U.S. financial institutions and their foreign counterparts have similar regulations with regard to engaging in nonbanking activities (d). U.S. financial institutions and their foreign counterparts have similar regulations with regard to expansion (branching) and the services that could be offered. (e).US, financial Institutions have been regulated less than their foreign counterparts with regard to expansion (branching) and the services that could be offered.
- In June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Answer the following three questions . 30. Which of the following is not one of the International code of Corporate Governance? a. The role of Chairman and chief executive officer should be separated b. On retiring, a Chief Executive should become a chairman. c. At least half the board, excluding the chairman, should comprise non-executive directors d. Levels of remuneration should be sufficient to attract and retain directorsDiscuss reflecting your views on the following statement, use examples and appropriate references to support or refute the position taken in the statement. “Caribbean financial institutions are weak and poorly regulated when compared to North American financial institutions. Additionally, because the financial markets in the Caribbean are relatively undeveloped, failure of financial institutions and financial crises are more likely to occur in the Caribbean than in North America.”In June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market. The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Which of the following is not one of the International code of Corporate Governance ? At least half the board, excluding the chairman, should comprise non-executive directors On retiring, a Chief Executive should become a chairman. Levels of remuneration should be sufficient to attract and retain directors Chairman and chief executive officer should be separated
- In June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Answer the following three questions . 29. Comparing the Internal Auditors and External Auditors , which of the following is not true about Internal Audit a. The auditor is appointed by the Management b. It is conducted by the employees of the company c. The scope of the internal audit is decided by the Board of Directors d. It is performed by a separate internal auditing departmentIn recent times, the central Bank of Ghana has embarked on re-organization of the financial sector that among others has resulted in the increase in the minimum capital requirement to ₡400million Ghana cedis. This exercise led to the revocation of licenses from some universal banks. This was followed by a full report by the Bank of Ghana (herein after called “that BOG report”) regarding their basis for the revocation of licenses. A carful review of this report reveals a number of financial reporting and corporate governance lapses. You are required to compare your understanding of the salient elements of that BOG report to the Enron Case (see excerpts below) and answer the questions that follow: Excerpts from the Enron Corporate Scandal “Enron was one of the world’s leading electricity, natural gas, pulp, paper and communications firm based in Texas. Its claimed revenue was estimated to be $101bn. However, at the end of the 2001 it was revealed that its financial condition was…Examine the processes for the acquisition of licence by Banks and other financial institutions in Ghana establishing the role of the regulator in this industry. In your opinion, do we still need a regulator if the banks are collapsing anyway?