Regulatory Alerts2010-01-01
Decree of the National Bank of Slovakia No 11/2010 on Valuing Banking Book Positions
The National Bank of Slovakia issued Decree No 11/2010 to establish mandatory methods for valuing positions recorded in the banking book to assess credit risk exposure. The regulation requires banks to value assets monthly using either internal ratings or the expected loss method, defined as the product of probability of default and loss given default. It further specifies detailed calculation requirements, minimum loss coefficients for specific asset classes, and transitional provisions for compliance starting January 1, 2011.
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