Regulatory Alerts2019-01-01
Standard of Sound Practice on Problem Asset Management, Provisioning Requirements and Accounting for ECLs
The Bank of Jamaica issued this January 2019 guidance to establish uniform standards for problem asset management and provisioning for deposit-taking institutions and financial holding companies. The document mandates the adoption of expected credit loss methodologies consistent with IFRS 9 and requires licensees to implement seven supervisory principles covering board oversight, credit risk classification, and timely provisioning. A twelve-month transition period was provided for compliance, during which the previous Credit Classification, Provisioning, and Non-accrual Regulations remained applicable.
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