Regulatory Alerts2019-01-01
Regarding the Management of Credit, Counterparty, Concentration, and Exchange Rate Risks
The Central Bank of Djibouti issued Instruction No. 2019-04 to establish a comprehensive regulatory framework governing credit, counterparty, concentration, and foreign exchange risk management for all credit institutions. The directive mandates that boards of directors and management implement robust organizational structures, risk mapping, internal capital allocation, and strict delegation limits, while ensuring independent risk oversight, continuous monitoring, and stress testing. It further prescribes detailed operational procedures for credit underwriting, non-performing loan classification, concentration limits, daily foreign exchange position tracking, and Sharia compliance for Islamic financial institutions.
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