Regulatory Alerts2025-10-21
DBFIA Practice Direction No. 10: Consolidated Basel II/III Capital Framework
The Central Bank of Belize issued Practice Direction No. 10 to consolidate the Basel II/III capital framework requirements for domestic and international banks regulated under the DBFIA. The directive mandates a minimum 9% capital adequacy ratio, including specific Tier 1 and Common Equity Tier 1 thresholds, while establishing detailed rules for capital consolidation, risk-weighted assets, and the treatment of investments in insurance and commercial entities. It supersedes previous guidelines and implements Pillar 1 minimum requirements, Pillar 2 supervisory review processes, and Pillar 3 disclosure obligations to ensure financial stability and market discipline.
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