Regulatory Alerts2013-01-01
Alabama State Banking Board Regulation No. 14 - Credit Exposure Limits
The Alabama State Banking Board issued Regulation No. 14 to establish credit exposure limits for banks, superseding the previous 1998 version effective January 1, 2013. The regulation caps unsecured exposures at ten percent of a bank's capital base and fully secured exposures at twenty percent, while mandating the aggregation of loans to related parties and defining measurement methods for derivatives. It further requires board approval for exposures exceeding ten percent of capital and imposes strict collateralization and reporting obligations to ensure compliance with the Alabama Banking Code.
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