Regulatory Alerts2021-01-01
Recommendation R on Credit Exposure Classification, Estimation and Recognition of Expected Credit Losses, and Credit Risk Management
The Financial Supervision Authority issued Recommendation R to establish comprehensive rules for banks regarding the classification of credit exposures, the estimation and recognition of expected credit losses under IFRS 9, and credit risk management. The document mandates that banks implement robust internal controls, validate models, and integrate macroeconomic factors into their risk assessment processes to ensure accurate financial reporting. It further requires strict governance oversight by the management board and supervisory board, alongside transparent disclosure of credit risk data to external stakeholders.
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