Regulatory Alerts2024-01-01
Credit Risk Guidelines 2024
The Registrar of Financial Institutions issues these mandatory guidelines to standardize credit risk measurement and capital adequacy calculations for all Malawian banks and bank holding companies. The document mandates the exclusive use of the Standardized Approach, detailing strict eligibility criteria for external credit rating agencies and prescribing comprehensive risk weight tables for sovereign, public sector, financial institution, corporate, and retail exposures. It further establishes rigorous due diligence protocols, exposure classification rules, and credit risk mitigation techniques to ensure conservative capital provisioning and prevent the double-counting of defaulted assets.
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