Regulatory Alerts2004-06-07
Decision No. 006/2004-CSBF/P on the Risk Division Ratio of Credit Institutions
The President of the Commission for Banking and Financial Supervision (CSBF) amends Article 5 of Directive No. 003/94-CCBEF to update the risk division ratio weights for credit institutions based on currency, loan term, and beneficiary status. The revised regulation specifies distinct risk percentages for short-, medium-, and long-term loans, as well as doubtful and immobilized claims, distinguishing between free zone and non-free zone enterprises. Effective for the financial position as of end-July 2004, the decision mandates that unpaid maturities be reclassified as doubtful claims within 60 days and requires banks to enforce guarantees upon such reclassification.
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