Regulatory Alerts2015-07-14
Regulation on Single Borrower and Large Exposure Limits
The Maldives Monetary Authority issued this regulation to limit credit risk by establishing caps on exposures to single borrowers, related groups, and large aggregate exposures. It mandates that single borrower limits not exceed 15% of a bank's capital base, borrowing group limits reach 40%, and total large exposures remain within 500% of capital. The document also defines specific exceptions for low-risk instruments and requires banks to implement robust internal policies and reporting mechanisms to ensure compliance.
Share