CIMA appoints new director to oversee Basel II implementation

The Cayman Islands Monetary Authority (CIMA) has appointed a new director to oversee Basel II implementation and update the authority’s various Statements of Guidance (SoG). At his first board meeting, Bryan Bothwell and the rest of the CIMA board approved 10 SoGs for circulation as part of the board’s mandatory consultation process.

For banks, proposed new rules cover risk management and loan loss provision to support existing SoG's, and a new rule and revised SoG cover large exposure and credit risk concentration. These are designed to ensure licensed banks have adequate policies and procedures in place to manage the risks inherent in their day-to-day operations.

The board was also updated rules on determining the best options for the Cayman Islands implementation of the revised Basel II Capital Accord. The terms of