Regulatory Alerts2025-02-18
Circular 83-5 Provisions on Credit Risk Concentration
The Bank of the Republic of Haiti issued Circular 83-5 to establish binding credit risk concentration limits for financial institutions, mandating strict individual and cumulative exposure thresholds relative to core regulatory capital. The regulation defines related and unrelated counterparties, sets sectoral concentration caps at 25%, and requires quarterly electronic reporting of large exposures and related party risks via the BSA application or APIs. Non-compliance triggers escalating daily penalties, including fines for inaccurate reporting, limit exceedances, calculation discrepancies found during inspections, and failure to provide requested information or submit reports on time.
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