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.
Since 2016, the department became also in charge of assessing debt restructuring plan requests, as per BDL circular No. 135, and got involved in spreading banks’ awareness.