Regulatory Alerts2024-10-17
Added · Updated
Circular Letter No. CC/2024/00000035
Credit institutions must implement policies and procedures to identify borrowers in financial difficulties and financial restructured credits for individuals, ensuring consistent application of prudential and accounting frameworks. The document mandates the use of specific quantitative and qualitative indicators, such as recurring payment delays, significant rating downgrades, high debt-to-income ratios, and liquidity issues, to trigger early identification. Institutions are required to maintain internal regulations, automated systems for tracking these indicators, and robust governance involving both the first and second lines of defense to ensure accurate risk classification and reporting to the Bank of Portugal.
More like this from BDP
BDP published 2 documents in the last 30 days. We email you each new one the day it's published.