2019-03-08 | BSD/DIR/GEN/LAB/12/004

Guidelines on Management of Credit Concentration Risk Under the Supervisory Review Process

The Central Bank of Nigeria (CBN) has issued guidelines for managing credit concentration risk, which is not fully addressed in the Basel 2 Capital Framework's Pillar 1. Banks are expected to identify and manage concentration risks, including credit, funding sources, collateral, and operational risks. The CBN will assess banks' credit concentration risk management and take supervisory action if deficiencies are found. The CBN has developed benchmarks and approaches to challenge banks' Pillar 2 capital estimates for concentration risk, considering historical loss experience and empirical studies.

Nigeria

Central Bank of Nigeria

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