Core Principles Methodology, BCP 11, Essential Criteria 5, states that aggregate limits on exposures to connected parties should be at least as strict as the limits for single counterparties (or groups of counterparties) that are not so connected.
2005 OFC Recommendations Follow-Up
|Reference Principle||Recommended Action||Status 2008|
|CP 1.2 Independence||Additional qualified supervision staff is need||Since the 2005 FSAP the number of staff of the Banking Supervision and Regulation Division (which now excludes financial stability) increased by two employees. The Division’s staff participates actively in training seminars and has extensive experience in all of the CBC’s supervisory tasks.|
|CP 8 Loan Evaluating and Loan Loss Provisioning||Finalize implementation of the more stringent criteria for interest suspension||Effective 1 January 2006 the 90 days in arrears rule applies and this will be further refined upon the alignment of the calculation of the interest to be suspended with the provisions of the International Accounting Standard 39.|
|CP 11 Country Risk||Establish formal guidance for a framework for country and transfer risk||The CBC issued guidelines to banks requiring them to have adequate systems and procedures in place.|
|CP 12 Market Risks||Improve market expertise and supervision||The CBC issued guidelines on the management of market risk and has recruited an expert in financial modelling.|