Regulatory Alerts2020-06-11
Guidelines on Treatment of IFRS 9 Regulatory Capital and COVID-19 Relief Measures
The National Bank of Rwanda has issued guidelines requiring banks to apply consistent IFRS 9 expected credit loss estimates and regulatory capital treatments while implementing pandemic relief measures. The framework clarifies that government-endorsed payment holidays and loan restructurings do not automatically trigger default or significant increases in credit risk, allowing institutions to classify affected exposures appropriately without disproportionate capital charges. Banks must utilize forward-looking macroeconomic scenarios and robust governance overlays to calculate provisions, ensuring stable lending throughout the twelve-month effective period.
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