Regulatory Alerts2005-05-01 | 23998Added · Updated
Prudent Person Approach to Investment and Lending Guideline
Financial institutions licensed under the Financial Institutions Act and insurance companies registered under the Insurance Act must implement sound investment and lending management policies and frameworks. The Board of Directors is responsible for approving these policies, while senior management must develop operational procedures, ensure risk management, and maintain internal controls. Institutions are required to establish specific limits for concentrations, counterparties, and derivatives, and to conduct regular stress testing and reporting to the Central Bank of Trinidad and Tobago.