Regulatory Alerts2022-11-07
Central Bank of the UAE Model Management Guidance
The Central Bank of the UAE issued this guidance to establish detailed requirements for the development, validation, and governance of quantitative models used by licensed banks. The document provides specific technical standards for rating, probability of default, loss given default, macroeconomic, interest rate risk, and net present value models. It mandates strict adherence to data management, model construction, and ongoing monitoring to mitigate model risk and ensure regulatory compliance.
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