Regulatory Alerts2021-01-01
Barbados National Discretion Items for Capital Adequacy
The Central Bank of Barbados issued this document to define its national discretions under the Basel capital framework, specifying risk weights and regulatory treatments for various asset classes. The Bank exercises discretion to apply preferential risk weights to domestic sovereign debt, certain public sector entities, and short-term domestic currency bank claims, while rejecting options for unsolicited ratings and specific past due loan treatments. Additionally, the regulator mandates the Standardised Approach for market risk and operational risk, allowing netting for globally consolidated groups and imposing specific capital charges for venture capital and commercial real estate exposures.
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