Draft Guidelines Posted for Industry Consultation

Published: Monday June 16th, 2003

Notice is hereby given of the availability of draft Guidelines for the Management of Credit Risk ('Guidelines'), the latest in The Central Bank's series of supervisory and regulatory guidelines that have been submitted for industry comment and review.

Sound systems and controls in the provision of credit are an integral part of good corporate governance by financial institutions, and these Guidelines represent a fundamental part of the Central Bank's commitment to the implementation of international best practice in the financial sector in The Bahamas.

As part of the Bank's on-site examination process, Licensees' systems and controls for credit risk will be subject to review. Institutions are therefore encouraged to review the principles and recommendations outlined in the Guidelines and compare them with their own credit risk management systems and controls.

The Guidelines are framed as a series of principles and recommendations rather than mechanistic prescriptive rules, and it is recommended that Licensees review them within the context of the credit-related activities, products and markets in which they are active in.

Guidelines are available in the Publications section of this website. Licensees and their industry associations should submit their comments to the Central Bank of The Bahamas no later than 30th June, 2003.