Regulatory Alerts2013-08-29
Regulation on Credit Risk Management for Microfinance Institutions
The Central Bank of the Republic of Kosovo issued this regulation to establish minimum credit risk management standards for all domestic and foreign microfinance institutions operating in the country. The directive mandates that institutions implement structured risk assessment systems, conduct quarterly credit reviews, and classify exposures into five categories—Standard through Loss—based on days past due and borrower financial health. It further prescribes strict provisioning rates, prohibits the capitalization of delinquent interest to circumvent classification rules, and requires clear organizational accountability between boards, risk committees, and management.
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