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  • Claims on Banks

    • CA-1.1.5B

      Claims on banks must be risk weighted as given in the following table. No claim on an unrated bank may receive a risk weight lower than that applied to claims on its sovereign of incorporation.

      Banks Credit Quality Grades AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- Below B- Un-rated
      ECAI 1 ECAI 2 ECAI 3 ECAI 4 ECAI 5 -
      Standard risk weights 20% 50% 50% 100% 150% 50%
      Added: January 2019

    • CA-1.1.5C

      Short-term claims on locally incorporated banks may be assigned a risk weighting of 20% where such claims on the banks are of an original maturity of 3 months or less denominated and funded in either BD or US dollar.

      Added: January 2019

    • CA-1.1.6

      Licensees must ensure that at all times they maintain the minimum CAR outlined in Paragraph CA-1.1.3. In the event that the licensee does not comply with the minimum CAR requirement, it must notify the CBB by no later than the following business day of the actual level of the CAR. When providing such notification, the licensee must:

      (a) Provide to the CBB, within one week of the non-compliance, a written action plan setting out how the licensee proposes to restore its CAR to the required minimum level and describe the systems and controls that have been put in place to prevent any future non-compliance of the minimum CAR; and
      (b) Report to the CBB on a monthly basis or on another timely basis as required by the CBB, the licensee's CAR until such time as the CAR has reached 12.5% or other target level as specified by the CBB.
      Amended: January 2019
      January 2014

    • CA-1.1.7

      Licensees should note that the CBB considers the breach of the minimum CAR requirement to be a very serious matter. Consequently, the CBB may (at its discretion) subject a licensee which breaches its minimum CAR requirement to a formal enforcement action.

      Amended: January 2019
      January 2014