Banks warned on capital adequacy

Sun, Apr 10th 2011, 11:00 PM

By NEIL HARTNELL

Tribune Business Editor

BAHAMIAN bank and trust companies will start to face enhanced capital adequacy requirements from 2013 onwards, the Central Bank of the Bahamas has warned, as this nation moves to implement the enhanced Basle III accords promoted by the Bank for International Settlements (BIS).

The banking industry regulator, in its quarterly April letter to senior industry executives, said an additional requirement that "may be set" is for institutions to maintain a minimum 3.5 per cent ratio of common (equity) shares to total risk-weighted assets from January 1, 2013, onwards.

Urging all Bahamas-based institutions under its regulatory supervision to familia ...

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