Regulatory Alerts2020-03-16
Added · Updated
Circular Letter No. CC/2020/00000013
The document requires credit institutions to subject any increase in risk for high-risk debtors or groups to the approval of the institution's management body in a plenary meeting and to provide immediate notification to the supervisory body, regardless of the decision outcome. It defines 'increase in risk' as new credit grants or restructuring involving additional financing or reduced risk mitigation, and 'high-risk debtors' as those with non-performing exposures or past material losses from debt forgiveness or write-downs. Institutions must establish internal policies with materiality criteria compatible with their size and risk appetite, which must be approved by the management body after a prior opinion from the supervisory body. These approved internal policies must be submitted to the Bank of Portugal by June 30, 2020.