CM-7 CM-7 Write-off — Credit facility
CM-7.1 CM-7.1 Write-offs
CM-7.1.1
All locally incorporated banks should notify the Agency of any write-off of a credit facility, (i.e., loan, overdraft and any other credit facility) of an amount in excess of BD 100,000, or its equivalent in foreign currency.
CM-7.1.2
Such notification should be accompanied by documentary evidence showing, beyond reasonable doubt, that the customer does not possess the resources to fulfil the outstanding obligation.
CM-7.1.3
Banks should also obtain the BMA's prior written approval before writing off any of the following:
(a) exposures to any present or former Director of the bank;(b) exposures which are guaranteed by a Director of the bank;(c) exposures to any business entity for which the bank or any of its Directors is an agent;(d) exposures to any officer or employee of the bank, or any other person who receives remuneration from the bank;(e) exposures to any business entity in which the bank (or any of its Directors, officers or other persons receiving remuneration from the bank) has an interest as a shareholder, Director, manager, agent or guarantor; and(f) exposures to any person who is a Director, manager or officer of another bank licensed by the Agency.
