Regulatory Alerts2024-11-30
Credit Risk Management Standards
The Central Bank of the United Arab Emirates issued these mandatory standards to establish comprehensive governance and operational requirements for credit risk management within Licensed Financial Institutions. The document mandates that Boards and Senior Management implement robust frameworks covering underwriting, monitoring, provisioning, and climate-related risk mitigation while ensuring strict oversight of credit concentrations and distressed assets. It further defines specific roles for internal and external audit functions to verify compliance with prudential standards and accounting principles regarding asset classification and loss recognition.
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