Regulatory Alerts2010-06-04
Guideline on Large Exposures
The Bank of Botswana issues this guideline to establish comprehensive limits and reporting requirements for large exposures across licensed banks, statutory banks, and supervised financial institutions. It mandates that boards implement robust credit policies, cap individual or group exposures at thirty percent of unimpaired capital, and restrict total large exposures to eight hundred percent. Banks must secure board approval for significant accommodations, maintain detailed records, submit quarterly reports, and obtain prior regulatory authorization to temporarily exceed the thirty percent threshold while reducing the excess within twelve months.
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