The Central Bank of the Republic of San Marino announces the launch of a public consultation procedure regarding the following two draft regulations:
- Regulation updating the supervisory provisions on credit exposures;
- Circular on Minimum Coverage of Impaired Credit Exposures of Banks.
These two complementary provisions, which should be considered together, have been developed with the aim of:
- introducing "calendar provisioning" requirements into San Marino's supervisory framework, similar to those in the European Union, with the objective of reducing risks related to non-performing exposures (NPEs) in bank balance sheets and preventing their future accumulation;
- aligning San Marino's credit classification standards with those currently in place in the European Union.
Specifically, the Regulation governs the application of calendar provisioning measures to future non-performing credit exposures on loans granted from July 1, 2023, while the Circular addresses the application of such measures to the current stock of non-performing credit exposures and future NPEs related to loans granted before July 1, 2023.
The Regulation includes provisions aimed at harmonizing the classification of credit exposures with EU standards.
Contributions to the consultation can be submitted to the following email address:
dipartimento.vigilanza@bcsm.sm stating as the subject of the e-mail:
"Consultation calendar provisioning and credit classification."
The consultation will end on March 10, 2023.