Regulatory Alerts2025-12-09
IFRS 9 Guidelines to Deposit-Taking Microfinance Institutions
The regulator issued IFRS 9 guidelines requiring deposit-taking microfinance institutions to classify large SACCOs as savings and credit cooperatives with total deposits of at least one billion Rwandan Francs. The framework mandates impairment calculations based on an expected average default metric, derived by subtracting the expected recovery rate from exposure at default (EAD) and dividing by EAD. These standardized measurements ensure consistent credit risk assessment and capital adequacy across Rwandan microfinance entities under the new accounting standard.
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1 Large SACCO is a Saving and Credit Cooperative with total deposits equal or above one billion Rwandan Francs (Frw 1,000,000,000)
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Page 7 of 13 𝐄𝐀𝐃−𝐄𝐱𝐩𝐞𝐜𝐭𝐞𝐝 𝐑𝐞𝐜𝐨𝐯𝐞𝐫𝐲 𝐫𝐚𝐭𝐞 𝐄𝐀𝐃
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