Regulatory Alerts2019-06-24
Market Risk Guidelines
The Central Bank of The Bahamas requires licensed banks and trust companies with trading books meeting defined thresholds to implement comprehensive market risk management frameworks and maintain a minimum 8 percent capital adequacy ratio. Licensees must establish board-approved risk policies, conduct daily mark-to-market valuations and stress tests, and calculate capital charges using the Basel Standardized Approach for interest rate, equity, foreign exchange, and commodity positions. Additionally, qualifying institutions must report their trading book activities and quarterly interest rate and foreign currency exposures through the Central Bank’s Excel Reporting System.
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