BMA announces formation of Financial Policy Council
The Honourable Everard Bob Richards, MP, deputy premier and minister of finance, and Jeremy Cox, the chief executive officer (CEO) of the Bermuda Monetary Authority (BMA), have announced the formation of the Financial Policy Council.
The council is an advisory body for the Ministry of Finance and the BMA and will further promote financial system stability in Bermuda. More specifically, the council will provide input into the macro-prudential oversight processes, advise on the further development of the financial stability framework in Bermuda and make policy recommendations designed to support the general economic, and fiscal well-being of the country as well as its financial stability.
“The formation of the council represents an important step in further strengthening the financial stability framework in Bermuda,” said Richards.
“In today’s uncertain global economic environment, it is essential that we remain focused on maintaining the health of the financial sector in Bermuda – and the potential risks to the economy.
“All countries, including Bermuda, are facing threats to their financial stability and many are responding to them. For us in Bermuda this development represents a vital move further to underpin our own financial stability.
Cox added: “At the authority, we welcome the opportunity to partner with the minister and his team in this initiative.
“We are re-establishing Bermuda as a global leader in financial services and it is critical that existing customers and those considering doing business in Bermuda see us as a jurisdiction where safety, soundness and fiscal credibility have top priority.
“Bermudians must continue to feel that their hard-earned assets are safe and secure and that decision-taking as it relates to Bermuda’s long-term financial stability is of the highest standard.”
Cox also said the work is key to the authority’s objective of maintaining financial stability and the soundness of financial institutions in Bermuda, as well as being aligned with supporting Bermuda’s role as a leading international financial centre.
Members of the Council will be: the minister of finance (Chair), Sir Andrew Large (Deputy Chair), Cox, Sir Courtney Blackman and Michael Butt OBE.
Large is a former deputy governor of the Bank of England and now an advisor to central banks and governments; Blackman is the former governor of the Central Bank of Barbados and ambassador for Barbados to the US; and Butt has had a distinguished career in the Bermuda-based global insurance industry and is currently chairman of the board of AXIS Capital Holdings.
“The external members of the council bring a wealth of experience both in Bermuda and internationally,” said Richards.
“They will provide important insights as we adopt and implement international standards. Indeed, while the framework for financial stability in Bermuda has improved significantly since the days of the global financial crisis, we are determined to remain vigilant looking ahead.
“The council will represent a vital ingredient in our overall ability to respond to the threats faced by Bermuda today and in the future.”
The council has been established under a memorandum of understanding (MoU) between the ministry and the BMA signed by the minister of finance and the CEO of the authority in September 2015.