Regulatory Alerts2022-05-05 | 29724Added · Updated
Reporting of Excess Credit Exposures in the Capital Adequacy Returns
The Central Bank of Trinidad and Tobago clarifies the treatment of excess credit exposures for insurance companies registered under the Insurance Act, 2018, within their Capital Adequacy Returns. For credit exposures under section 89 existing prior to the IA 2018 proclamation, a transitional period allows them not to be included in non-permissible values, provided insurers reduce the excess within three years or provide additional capital within two years; any subsequent increase, however, must be included. Excess credit exposures under section 90 existing prior to the IA 2018 commencement are also not initially included, but the Inspector may require their reduction, with any remaining excess after a consulted disposal period becoming non-permissible. All excess credit exposures arising after the commencement of the IA 2018 must be included in non-permissible values, and a detailed four-step reporting procedure is provided for their calculation and submission in the Capital Adequacy Returns, specifically noting reporting in Tab 40.060 and adjusted asset balances in Tabs 40.020/40.021.