Regulatory Alerts2019-01-01
Guideline on Credit Risk and Accounting for Expected Credit Losses
The Central Bank of Barbados issued this August 2019 guideline to regulate licensees' implementation of the IFRS 9 expected credit loss accounting framework. It establishes eight supervisory principles requiring boards and senior management to ensure robust credit risk management, sound ECL methodologies, and adequate allowance provisions. The document mandates the use of forward-looking information, experienced credit judgment, and rigorous model validation to prevent delayed recognition of credit deterioration.
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