Regulatory Alerts2024-09-01
Circular No. 23/2018 on Risk Management in Credit Institutions
The Bank of the Republic of Burundi issued Circular No. 23/2018 to establish minimum prudential rules for risk management in credit institutions. The regulation mandates that boards and senior management define risk tolerance, implement comprehensive identification, measurement, monitoring, and control systems, and maintain independent risk management functions with dedicated programs. It further requires rigorous frameworks for credit and liquidity risk, including concentration limits, quarterly loan quality analysis, stress testing, and adequate provisioning to safeguard financial stability.
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