Regulatory Alerts2018-10-26
Finansinspektionen's regulations and general guidelines regarding management of credit risks in credit institutions and securities companies
Finansinspektionen issued regulations and general guidelines requiring credit institutions and securities companies to establish robust governance, identification, and measurement procedures for credit risks. The rules mandate that undertakings define documented risk appetites and strategies, conduct forward-looking credit assessments based on repayment capacity, and maintain strict internal controls for credit decisions and reviews. Additionally, the document imposes specific requirements for managing credits with increased risk and credits to related parties to ensure early detection of potential losses and prevent conflicts of interest.
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