Amidst growing credit uncertainty among local banks, the financial institution is increasing supervisory oversight over local banks.
This is aimed toward ensuring prudent assessment of borrowers that are unlikely to pay, assessment of Business Continuity Management also as accurate provisioning to avoid effects that would destabilize the financial sector.
The Central Bank’s Financial Stability board meeting on Thursday last week recommended an assessment of the Business Continuity Management supervised financial institutions, to know their ability to deliver critical operations through disruption.
This comes at a time when the local finance institutions are experiencing increased credit risk because the pandemic has weakened the capacity of borrowers to service their loans, thus raising risks of default.
Data source: All Africa news