Regulatory Alerts2024-10-29
Industry Indebtedness Limitation
The Supervisor of Banks issued this directive to limit credit portfolio concentration risk by capping a banking corporation's total indebtedness to any specific industry at 20 percent of public indebtedness. The regulation establishes stricter 24 percent limits for the construction and real estate sector and allows for specific deductions from these calculated totals. Banks must report quarterly compliance to the Banking Supervision Department and adhere to temporary adjusted limits for financial and construction industries until December 31, 2027.
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