The Appropriate Levels Of Single And Group Counterparty Exposure Limits


Common to the Jamaican financial crisis of the mid-1990s and the 2008 global financial meltdown was the
existence of large counterparty exposures amongst key financial institutions which, at the demise of one or
a few financial entities and non-financial corporations, resulted in contagion-induced financial sector
fallout. This reinforced the need for national authorities to bolster, on an ongoing basis, the legal and
operational frameworks governing the preservation of financial system stability.