Regulatory Alerts2022-12-20
Management of Credit Risk Guidelines 2022
The Central Bank of The Bahamas requires supervised financial institutions to adopt comprehensive credit risk management frameworks that align board oversight and senior management responsibilities with IFRS 9 expected credit loss provisioning and standardized Total Debt Service Ratio metrics. Institutions must enforce a 15% minimum equity contribution for personal loans, integrate credit bureau scoring into client assessments, and conduct regular stress testing to monitor portfolio concentrations. These mandates establish clear asset classification standards, delegated credit authority limits, and robust mitigation techniques to preserve capital adequacy and prevent liquidity impairments.
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