Regulatory Alerts2022-06-02
Added
BRPD Circular Letter No. 21: Single Borrower and Large Loan Exposure Limit
The document clarifies that no conversion factor is applied to non-funded facilities when calculating large loan exposure for a single borrower or group, meaning both funded and non-funded exposures are included at 100%. However, conversion factors of 25% for the power sector and 50% for other sectors must still be used to determine the maximum limit of large loans in the bank's portfolio. Banks are required to immediately implement this clarification and correct any previously submitted Form L reports that incorrectly applied conversion factors to large loan calculations.