CIBC's Barbados woes incur $44 million capital charge
Sovereign credit risk-weighted assets jump 19% as Barbadian loans sour
Outstanding loans to the troubled government of Barbados forced the Canadian Imperial Bank of Commerce (CIBC) to add C$57 million ($44 million) to its credit risk capital requirement through end-July.
The Barbadian government announced it would restructure its public debt in June after finding its existing liabilities were worse than previously thought. CIBC subsidiary FirstCaribbean International Bank held $506 million of Barbados sovereign loans and securities as of end-March.
The Canadian
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