Regulatory Alerts2018-11-01
DBFIA Practice Direction No. 2: Classification of Loans and Other Assets
The Central Bank of Belize issued this Practice Direction to prescribe the methodology for evaluating and classifying loans and other assets held by licensees under the Domestic Banks and Financial Institutions Act. It mandates that non-performing assets be categorized as Substandard, Doubtful, or Loss based on specific arrears periods and credit weaknesses, while introducing extended grace periods for agriculture and marine sectors effective November 1, 2018. Licensees are required to conduct quarterly classification reviews and report classified facilities to the Central Bank via Bank Returns BR8 and BR8a.
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