Regulatory Alerts2019-03-28
Regulation on Credit Risk Management
The Central Bank of the Republic of Kosovo issued this regulation to establish standard and minimum requirements for credit risk management, emphasizing the implementation of Expected Credit Loss (ECL) accounting frameworks. It mandates licensed banks to maintain robust credit risk management systems, clearly delineate Board and senior management responsibilities, and conduct regular stress testing alongside dynamic credit risk rating and grouping processes. Furthermore, the regulation requires financial institutions to adopt sound allowance methodologies that integrate forward-looking macroeconomic factors and align with IFRS 9 standards for accurate ECL measurement.
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