Regulatory Alerts2008-07-01
Financial Institutions (Asset Classification and Provisioning) Regulations, 1998
The Minister of Barbados issued these regulations under the Financial Institutions Act to mandate the classification of loans and provisioning for doubtful assets by licensed financial institutions. The rules require annual portfolio reviews and categorize assets into five tiers ranging from Pass to Loss, with specific criteria defining each risk level. Furthermore, the regulations establish minimum provisioning percentages for each category, govern the treatment of renegotiated loans, and dictate procedures for suspending interest accruals and writing off losses.
Share