2020-09-22

A circular dated September 21, 2020 regarding reviewing the models used in calculating expected credit losses

The letter, dated September 21, 2020, is addressed to the Chairman of the Board of Directors of a bank in Cairo, Egypt. It refers to instructions from the Central Bank of Egypt regarding the implementation of the International Financial Reporting Standard 9 (IFRS 9), which includes the requirement for banks to validate the soundness and effectiveness of models used in calculating expected credit losses (ECL). The Central Bank emphasizes the importance of assessing the quality of assets and accurately calculating ECL during crises.

Egypt

Central Bank of Egypt

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