Regulatory Alerts2024-08-07
Prudential Standard on Credit Risk Management and Credit Underwriting
The Eastern Caribbean Central Bank issued this Prudential Standard to establish minimum requirements for credit risk management frameworks and residential mortgage underwriting at licensed financial institutions. The regulation mandates boards and senior management to implement comprehensive credit policies, define delegated lending authorities, monitor portfolio concentrations, and enforce strict debt-service and loan-to-value ratios. Licensed institutions must formally document and submit their board-approved credit risk policies, collateral management procedures, and periodic committee minutes to the Central Bank for ongoing supervisory compliance.
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