Regulatory Alerts2022-05-05
Added · Updated
Prudential Credit Guidelines
The Eastern Caribbean Central Bank requires regional financial institutions to conduct annual reviews of at least 70 percent of their credit portfolios, classifying loans into five categories: Pass, Special Mention, Substandard, Doubtful, and Loss. The guidelines mandate tiered provisioning rates from zero to one hundred percent based on these classifications, prescribe interest suspension for non-performing loans and overdrafts exceeding approved limits, and require write-offs three months after loss classification. Additionally, the document establishes strict renegotiation conditions regarding borrower capacity, security adequacy, and a mandatory one-year holding period before upward reclassification.
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