Regulatory Alerts2024-07-30
Prudential Standard for Market Risk Management for Licensed Financial Institutions
Issued by the Eastern Caribbean Central Bank, this standard mandates licensed financial institutions to establish comprehensive market risk management frameworks aligned with their size and complexity. Institutions must allocate trading positions, implement board-approved risk limits and governance structures, and conduct independent reviews alongside robust stress testing and management information systems. The requirements ensure accurate identification, measurement, and monitoring of interest rate, foreign exchange, and equity exposures while maintaining compliance with internal capital adequacy assessments.
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