Regulatory Alerts2024-11-30
Credit Risk Management Regulation
The Central Bank of the UAE issued the Credit Risk Management Regulation to establish minimum requirements for licensed financial institutions regarding effective credit risk management and provisioning. The regulation mandates a comprehensive framework for governance, underwriting, default definition, and significant increase in credit risk assessment to ensure financial resilience. It applies to all LFIs providing credit facilities in the UAE, including consolidated requirements for entities with foreign subsidiaries and branches.
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