Large Exposure Department
The main functions of the “Large exposure” (LE) department are:
- Conducting a preventive supervision of borrowers having critical sized exposures in the banking sector.
- Unifying loan rating of a LE borrower among banks.
- Elaborating economic sector studies in coordination with the “Regulations, Macro prudential and Consumer protection” department.
The Main objectives of the “LE” department can be resumed as the following:
- Avoiding unexpected delinquencies among LE borrowers that could lead to major losses for the different players in the banking sector.
- Reducing systematic risk and contagion risks in the banking sector.
Preventive supervision consists of three majors tasks:
- Performing a Risk Focused Study approach for each LE’s borrower.
- Reviewing LE portfolio at specific deadlines. These deadlines are set according to borrowers rating and performance.
- Tracking and Monitoring, periodically, the major changes in the loan exposure of LE borrowers.