Regulatory Alerts2019-06-27
Capital Adequacy Guidelines
The Central Bank of The Bahamas mandates minimum capital adequacy ratios of 8 percent for total capital, 6 percent for Tier 1, and 4.5 percent for Common Equity Tier 1 across all licensed banks and trust companies. The framework defines eligible capital components, establishes trigger and target ratios to prompt corrective action during risk deterioration, and standardizes risk-weighted asset calculations for credit, operational, and market exposures. Licensees must maintain these capital levels continuously, submit quarterly regulatory reports, and immediately notify the regulator of any anticipated or actual ratio breaches.
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