Regulatory Alerts2009-05-21
Large Exposure, Credit Concentration and Connected Lending
The Central Bank of Seychelles issued these Directives to establish clear definitions, computation methods, and reporting standards for large exposure, credit concentration, and connected lending across all licensed banks. Banks must calculate credit concentration by deducting specific collateral from total credit and dividing by core capital, with prior Central Bank approval required for exposures reaching 25 percent or more of that capital. Monthly electronic submissions using standardized forms are mandatory to monitor aggregated limits, which cap credit concentrations at 600 percent of core capital and combined connected lending at 25 percent, effectively superseding the 2005 directives.
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