Regulatory Alerts2017-03-30
Isle of Man Financial Services Authority Guidance on Credit Risk, Arrears and Provisions Management
The Isle of Man Financial Services Authority issues this guidance to require Class 1(1) and Class 1(2) deposit takers to implement robust credit risk, arrears, and provisioning management policies. The document mandates that banks establish formal credit policies approved by the Board, maintain comprehensive procedures for monitoring exposures, and enforce strict controls over lending, security, and related-party transactions. It further specifies requirements for identifying non-performing loans, calculating provisions, and reporting portfolio conditions to senior management to ensure safety and soundness.
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