Regulatory Alerts2019-06-24
Large Exposures Guidelines Revised May 2013
The Central Bank of The Bahamas requires all licensed banks and trust companies to implement comprehensive internal policies for managing credit risk concentration. Licensees must secure Board approval for large exposure policy statements that define counterparty categories, enforce a 25 percent limit on single exposures and a 15 percent cap on related party exposures, and maintain an aggregate large exposure ceiling of 800 percent of capital. The guidelines further mandate quarterly reporting via the Excel Reporting System, specify exempt exposures subject to Inspector approval, and require prompt notification and corrective action within ten working days following any limit breach.
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