BMA Hosts 4th Financial Policy Council Meeting
On 5th December, the Bermuda Monetary Authority hosted the fourth meeting of the Financial Policy Council [Council] at its offices in Hamilton, Bermuda.
“The Council, established in 2015, advises the Ministry of Finance and the Authority on financial system stability in Bermuda. Its purpose is to assess possible threats to Bermuda’s financial stability, and to identify policies and actions to mitigate or eliminate such threats,” the BMA said.
“It also advises on development of the financial stability framework in Bermuda, and makes policy recommendations designed to support the general economic and financial well-being of the country. Members of the Council are the Deputy Premier and Minister of Finance E.T. Richards [chair], Sir Andrew Large [deputy chair], Authority CEO Jeremy Cox, Sir Courtney Blackman, Michael Butt, Dame Amelia Fawcett and Gil Tucker.
“At their meeting of 5th December, Council members reviewed recent international developments and how they might impact the global economic outlook.
“They also discussed recent domestic economic developments and assessed potential risks and vulnerabilities to financial stability in Bermuda. Among the topics discussed were the ongoing implications for Bermuda arising from the June Brexit vote in the United Kingdom and economic and financial policy developments.
“The Chair of the National Anti-Money Laundering Committee [NAMLC] made a presentation regarding work under way to strengthen Bermuda’s anti-money laundering and counter terrorist financial framework. The Council also discussed the readiness of Bermuda for the 2018 Caribbean Financial Action Task Force [CFATF] Mutual Evaluation of the island’s regime.
“While significant progress was being made to build resiliency in Bermuda, Council member’s urged NAMLC to continue to attach priority and to assign adequate resources to ensure the timely implementation of its strategy. It was noted that support and engagement to combatting money laundering and the terrorist financing from both the public and private sectors was essential.
“The Council discussed the second report of the Fiscal Responsibility Panel, in particular its review of the Government’s ongoing progress towards meeting its medium-term fiscal targets. The recent successful issuance of Bermuda government debt was also considered.
“The Council recognised that while the Government’s actions in the 2016 budget represented important progress towards addressing the vulnerabilities to Bermuda from the high level of government debt, significant challenges remained.
“In this respect, the Council emphasised the importance of addressing demographic trends like an ageing population, and the need for fair tax measures that could be expeditiously implemented.
“In addition, the following topics were discussed:
- recent progress towards strengthening Bermuda’s recovery and resolution framework for its domestic banking sector, including the formation of a Banking Liaison Panel
- key developments in the financial sector, with specific focus on Bermuda’s international insurance and reinsurance sector
- ongoing implementation of Bermuda’s Deposit Insurance Regime
- a review of developments in Bermuda’s real estate market.
The Council’s next meeting is scheduled for late April 2017.
