A Bank must enter into any transactions with Related Parties on an arm’s length basis, monitor these transactions, and take appropriate steps to control or mitigate the risks and write off exposures to Related Parties in accordance with standard policies and processes.
The Central Bank may set, on a general or case-by-case basis, limits for exposures to Related Parties, deduct such exposures from capital when assessing capital adequacy, or require collateralization of such exposures.
A Bank may extend credit facilities to members of the Board, Staff, and relatives of such persons as determined by the Central Bank in its Regulations as amended from time to time. Credit facilities extended to Staff and their Relatives must be approved by the Board or one of its committees. Credit facilities extended to a Member of their Board must be approved by the whole Board. In all cases, a Member of the Board must abstain from voting on the approval of the credit facilities where he/she may have a related conflict of interest.