Regulatory Alerts2003-02-25
Loan Policy Guidelines
The Office of the Superintendent of Banking Canada mandates that bank Boards of Directors adopt and annually review a comprehensive Loan Policy. This policy must establish specific guidelines for loan types, collateral requirements, insider lending, and credit extensions while prohibiting interest capitalization. Additionally, the document requires formal procedures for maintaining loan loss reserves, monitoring deficient accounts, and ensuring compliance with applicable laws and regulations.
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