Regulatory Alerts2024-09-01
Added · Updated
On the Division of Credit Risks for Credit Institutions
The Bank of the Republic of Burundi issued Circular No. 06/2018 to establish permanent credit risk segmentation limits for all licensed credit institutions. The regulation mandates strict exposure caps, including a 25% limit on individual counterparties and related persons, a 5% cap on single related entities, and an 800% threshold for major risks, all calculated against core own funds. It further standardizes deductible guarantees, requires monthly reporting using prescribed templates, and conditions limit-breaching waivers on documented consortium risk-sharing arrangements.