Regulatory Alerts2013-05-15
CUA Requirement No. 2/2013: Allowance for Loan Losses and Impaired Assets
The Registrar of Credit Unions in Belize issued CUA Requirement No. 2/2013 to prescribe procedures for establishing and maintaining allowances for loan losses and impaired assets. The regulation mandates specific reserve ratios of 35 percent for doubtful loans, 100 percent for unsecured loss loans, and 50 percent for mortgage-collateralized loss loans. It further requires quarterly evaluations, immediate write-offs for uncollectible assets, and strict timelines for writing off classified loss loans.
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