Regulatory Alerts2024-07-01 | CBE7.1CBE Regulation Book 7.1 - Rules For Preparing And Presenting The Financial Statements Of Banks And The Foundations Of Recognition And Measurement.
The document outlines instructions for Egyptian banks regarding the application of the International Financial Reporting Standard (IFRS) 9 during the COVID-19 crisis. It allows banks to issue abbreviated quarterly financial statements while requiring annual comprehensive statements by the end of their fiscal years. It also addresses the 6-month deferral of credit installments for customers, which is not considered a significant indicator of increased credit risk. Banks are instructed to review models used for calculating expected credit losses, assess the quality of their information systems, and ensure the accuracy of expected credit loss calculations. The Central Bank of Egypt aims to maintain the financial stability of banks and ensure the quality of assets.