These Guidelines specifically address the management of the credit risk present in the business activities of licensees, within their overall corporate governance process and risk management programme. The effective management of credit risk as a component of a comprehensive risk management programme is fundamental to the safety and soundness of every licensee and is critical to its long-term viability. These Guidelines should be read in conjunction with the "Guidelines for the Corporate Governance of Banks and Trust Companies Licensed to do Business Within and From Within The Bahamas" ("Corporate Governance Guidelines") and the Guidelines for the Management of Large Exposures (Large Exposures Guidelines). Additionally, the Central Bank endorses the Basel Committee's 17 Principles for Management of Credit Risk (September 2000). Licensees are encouraged to refer to the full Basel document at www.bis.org.
