Regulatory Alerts2019-06-24
Central Bank of The Bahamas Country Risk Management Guidelines
The Central Bank of The Bahamas mandates that all licensed banks and trust companies with international exposures implement robust country risk management frameworks to mitigate adverse economic, political, and social impacts on their financial condition. Licensees must establish board oversight, define risk tolerance limits, maintain accurate exposure reporting and rating systems, conduct periodic stress testing, and set aside adequate provisions to absorb cross-border losses. While the guidelines are not overly prescriptive, they require tailored policies, regular monitoring of country conditions, and clear authority for provisioning decisions to ensure financial soundness.
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