The Central Bank of Barbados is charged with maintaining a stable financial system. This process includes assessing the safety and soundness of its licensees and ensuring that adequate risk management policies are implemented. In an effort to limit the loss that a financial institution could incur as a result of a sudden failure of an individual counterparty or a group of related counterparties, the Bank has developed and issued the Large Exposure Guideline.
The Guideline sets out the Bank’s expectation for effective measurement and control of risks associated with large exposures and incorporates the guidance reflected by the Basel Committee on Banking Supervision.