Regulatory Alerts2018-08-02
National Bank of Rwanda IFRS 9 Implementation Guidance
The National Bank of Rwanda has issued this guidance to standardize the implementation of IFRS 9 across its banking sector, mandating a shift from the incurred loss model to a forward-looking Expected Credit Loss (ECL) framework. The directive establishes a three-stage impairment model that requires financial institutions to continuously assess credit risk deterioration, calculate provisions using Probability of Default, Loss Given Default, and Exposure at Default metrics, and integrate forward-looking macroeconomic data. It further outlines specific governance, data infrastructure, and transition requirements to ensure consistent application, accurate disclosure, and regulatory compliance for annual periods beginning on or after 1 January 2018.