Regulatory Alerts2013-03-26
DBFIA Practice Direction No. 2: Classification of Loans and Other Assets
The Central Bank of Belize issued this practice direction to prescribe the mandatory methodology and procedures for evaluating and classifying loans and other assets held by financial licensees. It defines non-performing and restructured credit facilities while establishing adverse classification tiers of Substandard, Doubtful, and Loss based on specific arrears durations and credit weaknesses. Licensees must conduct classification reviews at least quarterly, report classified facilities monthly and quarterly via Bank Returns BR8 and BR8a, and refrain from classifying restructured non-performing loans as Pass for a minimum of three months post-modification.
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