Regulatory Alerts2020-07-27
Decision on Managing Concentration Risk Arising from Bank Exposure to Specific Products
The Executive Board of the National Bank of Serbia issued this Decision to prescribe methods for calculating and limiting concentration risk from bank exposure to specific products, particularly long-term household loans. It establishes a cap of 30% of adjusted capital and liabilities for such exposures, with transitional limits of 50% and 40% for 2019 and 2020 respectively, while excluding certain moratorium-affected loans. Banks are required to submit monthly concentration risk indicators electronically and must submit compliance plans or face supervisory measures if they fail to maintain the prescribed limits.
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