Regulatory Alerts2023-05-15
Regulation No. 2023-02 on the Update of Supervisory Provisions Regarding Credit Exposures
The General Director of the Central Bank of the Republic of San Marino issued Regulation No. 2023-02 to align the national credit taxonomy with EU standards and introduce first-pillar prudential measures to prevent the accumulation of non-performing loans. The regulation replaces outdated credit classifications with the terms 'exposures in default' and 'deteriorated exposures,' establishing strict definitions for 'unlikely to pay' and 'forbearance' based on debtor difficulty and specific thresholds. It mandates the reclassification of credit exposures into sub-categories of 'bad debts,' 'probable defaults,' and 'overdue/overdrawn' to enhance supervisory reporting and historical data continuity.
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