Regulatory Alerts1996-04-17
Directive No. 2/DSB/96: Financial System - Good Banking Practice Standards
The Banking Supervision Directorate issues Directive No. 2/DSB/96 to update reporting requirements for financial institutions regarding large risk controls. The directive mandates that institutions submit updated data on total risk assets and total own funds, alongside an itemized list of large-risk debtors detailing their names, credit risk values, and risk-to-capital ratios. Additionally, institutions must provide a breakdown of their twenty largest depositors, with these requirements taking immediate effect.
DIRECTIVE NO. 2/DSB/96
SUBJECT: FINANCIAL SYSTEM Operations Good Banking Practice Standards Notice No. 05/96 of April 17 Considering the terms of Notice No. 05/96 of April 17, which clarified the concepts applicable to the control of large risks of Financial Institutions, we clarify that the Information provided for in Article 2 of Instruction No. 01/94 of April 22 shall henceforth be submitted to this Directorate in the following manner: a) Total Value of Risk Assets;
b) Total Value of Own Funds; c) Itemized list of debtors classified as "large risk", in accordance with paragraph b) of Article 2 of Notice No. 05/96 of April 17, indicating the debtor's name, total credit risk assumed, and the percentage of such risk relative to the Institution's Own Funds. d) Itemized list of the twenty largest depositors. This Directive enters into force immediately, BANKING SUPERVISION DIRECTORATE