Regulatory Alerts2022-08-24
Capital Adequacy Guidelines 2022
The Central Bank of The Bahamas mandates all licensed banks and trust companies to maintain capital levels aligned with their credit, market, and operational risks under an updated Basel III framework. The revised guidelines establish mandatory regulatory capital buffers ranging from 2.5% to 9%, enforce leverage ratio thresholds of 4% for standard institutions and 6% for systemically important banks, and require boards to implement approved Internal Capital Adequacy Assessment Processes. Institutions falling below minimum capital ratios must immediately submit and execute board-approved recovery plans, while the regulator retains authority to impose supervisory interventions or higher capital requirements based on risk profile deterioration.