Belize annual report details financial stability measures
Central Bank of Belize publishes annual report for 2012; establishes financial stability unit to explore macro-prudential surveillance and introduces measures to reduce share of NPLs
The Central Bank of Belize published its annual report for 2012 yesterday, revealing details of the financial stability unit it established after assuming "explicit responsibility for stability of the financial system as a whole" last year.
The unit is tasked with formulating a framework for macro-prudential surveillance "with a view to identifying financial-sector vulnerabilities and recommending strategies for risk mitigation", according to the central bank's annual report for 2012.
Moreover, the central bank enacted new loss-provisioning standards to tackle the level of commercial bank non-performing loans (NPLs). Banks are now required to set aside up to 70% of the value of loans that are collateralised by mortgages. The standards have resulted in the cumulative NPL ratio across banks falling from 14.5% to 11%, the report said.