Regulatory Alerts2012-11-21
Financial Institutions (Credit Classification and Provisioning) Regulations 2010
The Central Bank of Seychelles mandates all licensed banks to implement standardized credit classification and provisioning processes under the Financial Institutions Act. Banks must conduct monthly portfolio reviews, assign exposures to five risk categories ranging from Pass to Loss, and apply minimum provisioning percentages of one to one hundred percent based on net credit balances. The regulations further enforce strict write-off timelines, non-accrual income recognition for impaired credits, and monthly reporting to ensure adequate capital coverage against potential loan losses.
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