Regulatory Alerts2019-03-14
Determination on Limits on Exposures to Single Borrowers, Large Exposures and Concentration Risk (BID-4)
The Bank of Namibia issued Determination BID-4 to cap single borrower exposures at 25 percent and aggregate large exposures at 800 percent of capital funds for all authorized banking institutions. The regulation defines concentration risk, permits targeted exemptions for government obligations, marketable commodities, and segregated deposits, and mandates board-approved lending policies alongside annual stress-testing. Banks must submit quarterly compliance returns and align non-conforming exposures with the new thresholds by the 31 December 2019 effective date.
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