Regulatory Alerts2016-08-31
Regulation on Credit Risk Management
The Central Bank of the Republic of Kosovo issued this regulation to establish comprehensive standards for credit risk management across all licensed domestic and foreign banks. It mandates the implementation of robust organizational structures, clear board oversight, and annual stress testing to continuously assess portfolio quality and capital adequacy. Furthermore, the document standardizes loan classification into five categories based on delinquency periods and financial performance, while enforcing strict provisioning and rescheduling requirements to prevent deceptive risk management practices.
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