2.2. Principle 2—Credit Risk and Problem Assets

(1) A Bank must have an adequate Credit Risk management policy that takes into account the Bank’s risk tolerance, its risk profile and the market and macroeconomic conditions. This policy must identify, measure, evaluate, monitor, report and control or mitigate Credit Risk in a timely way.

(2) A Bank must have adequate policies for the early identification and management of problem assets, and the maintenance of adequate provisions and reserves.