CM-4.5 CM-4.5 Country and Transfer Risks
CM-4.5.1
The CBB requires all
conventional bank licensees to set out their policy on country and transfer risks, including the criteria on downgrading a country exposure from stage 1 to stages 2 or 3, and related provisioning requirements, in a policy statement which must be approved by the CBB.Added: July 2017CM-4.5.2
For the purpose of Paragraph CM-4.5.1,
conventional bank licensees , may consider the sovereign risk matrix factors, stipulated in Appendix CM-1 (Sovereign Debt Provision Matrix), and any other factors.Added: July 2017CM-4.5.3
Branches of foreign bank licensees must satisfy the CBB that equivalent arrangements are in place at the parent entity level, otherwise a policy would be required in line with Paragraph CM-4.5.1.Added: July 2017CM-4.5.4
The policy statement set in Paragraph CM-4.5.1 must be implemented with effect from 1st January 2018.
Added: July 2017