Bank Failure in Jamaica

This case provides a springboard for a general discussion of banking problems and the issues facing decision-makers as a result. The central issues deal with identifying the causes of banking problems and the resolution of these problems in a developing country context. Students will discuss: the causes of bank failures, the use of quantitative and qualitative data in assessing bank failures, alternatives facing decision-makers, and generally, the use of past information to predict future outcomes; the effects of, and responses to, the failures that contribute to an understanding of the Jamaican banking crisis and the related issues of regulation and supervision in three main ways.