08/19/2024 | Press release | Distributed by Public on 08/19/2024 08:45
THE EASTERN CARIBBEAN CENTRAL BANK HAS ISSUED VALUATION PRUDENTIAL STANDARD TO ALL FINANCIAL INSTITUTIONS LICENSED UNDER THE BANKING ACT
The public is hereby informed that the Eastern Caribbean Central Bank (ECCB) has issued the Valuation Prudential Standard for Licensed Financial Institutions under the Banking Act, 2015 (Valuation Standard). All institutions licensed under the Banking Act, 2015 as amended (the Act) must comply with the Valuation Standard which is made pursuant to section 184 of the Act. This Standard came into effect on 15 December 2017.
This is a very important standard which requires licensed financial institutions (LFIs) to manage real estate valuation risks and to ensure prudent lending practices in an age of dynamic property markets.
The Valuation Standard establish minimum requirements for real estate valuation programmes, appraisal practices, and collateral risk management at LFIs.
Specifically, the Valuation Standard covers:
Please note that the ECCB does not impose any requirements on LFIs with regard to the frequency of conduct of property valuation.
The entire Valuation Standard can be accessed at https://www.eccb-centralbank.org/standards.
The ECCB expects all LFIs to adhere strictly to the Valuation Standard to ensure reliable property valuations, prudent lending decisions, and effective management of real estate collateral risks; ultimately protecting consumers and maintaining financial stability.
Compliance with the Valuation Standard is being monitored by the ECCB through off-site supervision and risk-based on-site examinations. LFIs found to be non-compliant will be subject to remedial and enforcement actions permitted under the Act.