Regulatory Alerts2017-07-07
Regulation (NAP) - Recovery, Remediation and Resolution Plans
The Central Bank of São Tomé and Príncipe issued Permanent Application Norms (NAPs) 14 through 17 to establish immediate corrective measures, resolution procedures, recovery and remediation plans, and corporate governance guidance for supervised banking institutions. NAP 14 mandates a five-tier risk classification system (Categories A to E) based on liquidity, solvency, and CAMELS ratings, triggering escalating mandatory and discretionary supervisory interventions such as dividend bans, business restrictions, and mandatory recovery plans for lower-rated institutions. The framework empowers the Central Bank to intervene preemptively to preserve asset values, maintain systemic stability, and enforce penalties for non-compliance with supervisory directives.