Regulatory Alerts2022-05-05
Valuation Standards for Institutions Licensed Under the Banking Act
The Eastern Caribbean Central Bank has issued prudential standards requiring all licensed financial institutions to implement comprehensive real estate valuation programs that ensure appraiser independence and sound credit decision-making. Institutions must submit approved valuation policies, monthly credit committee minutes, and annual real estate lending spreadsheets to the Central Bank within specified timeframes. The standards mandate rigorous selection, rotation, and monitoring of independent appraisers and evaluators, while establishing clear protocols for engagement letters, appraisal validation, and portfolio collateral risk management.
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