PRUDENTIAL SUPERVISION POLICIES

The following are the Prudential Guidelines issued by the Central Bank of Solomon Islands in September 2009.

This Prudential Guideline outlines the approach used by the CBSI in assessing the capital adequacy of financial institutions and is intended to assure that each financial institution maintains a level of capital which:

  • is adequate to protect its depositors and creditors
  • is commensurate with the risk profile and activities of the financial institution, and
  • promotes public confidence in … Read more.

This Prudential Guideline establishes uniform standards to be followed by financial institutions to ensure that:

  • loans are regularly evaluated using an objective grading system that is consistent with regulatory standards;
  • the accounting treatment for non-performing assets is consistent with recognized accounting practices and regulatory requirements;
  • timely and adequate … Read more.

The purpose of this Prudential Guideline is to:

  • assure that foreign currency positions are maintained within prudent limits to avoid excessive risk of loss to a financial institution’s capital as a result of fluctuations in foreign currency prices
  • promote … Read more.

In its prudential supervision of licensed financial institutions the Central Bank of Solomon Islands (CBSI) seeks to satisfy itself that individual financial institutions are meeting prudential and statutory requirements and are following management … Read more.

Excessive exposure to a single customer or group of customers is a significant risk for financial institutions and the CBSI sees it as highly important to protecting the safety and soundness of financial institutions to prevent excessive investments in or loans to any one person or group of interrelated … Read more.

This Prudential Guideline outlines the approach used by the CBSI in its supervision of the liquidity of financial institutions. Read more.

This Prudential Guideline specifies the statistical and related information that a financial institution must submit to the CBSI, the required form and frequency for such information, persons responsible for certifying the accuracy and timely submitting of the data, duties and responsibilities of the board of directors, and the confidentiality of such information.
Read more.

This Prudential Guideline is applicable to commercial banks and credit institutions licensed by the Central Bank of Solomon Islands (CBSI) and is applicable to all new contracts for loan and deposit products entered into, on or after the issuance of this Prudential Guideline and all existing contracts for loan and deposit products whose terms are renewed, extended or otherwise modified on or after the issuance of this Prudential Guideline. Read more.

This Guideline is necessary as required under the Central Bank of Solomon Islands Act 2012 (the Act) section 9 (m): to ensure that financial institutions establish consumer complaints units within their organization. Read more.

This Practice Guidance Note is applicable to commercial banks and credit institutions licensed by the Central Bank of Solomon Islands (CBSI).. Read more.