General Authority for Financial Supervision Board Decision No. 101 of 2020 (Updated in 2022)

---

1
Board Decision No. (101) of 2020 dated 23/6/2020 Regarding the Financial Adequacy Criteria for Companies Operating in Consumer Finance Activities Latest amendment dated 12/4/2023

1. Board of the General Authority for Financial Supervision
   has decided:
   (Article 1) (Article 2) (Article 3) (Article 4)

2. The decision was amended by Board Decision No. 161 dated 16/11/2022 and Board Decision No. 82 dated 12/4/2023.

3. Financial Adequacy Criteria for Companies Operating in Consumer Finance Activities
   Article (1)

Capital Adequacy Ratio: Credit Risks: First

2. Article 1 was amended by Board Decision No. 161 dated 16/11/2022.
   *The Capital Adequacy Ratio (“CAR”) aims to measure the company's ability to face risks associated with its activities, primarily credit and operational risks.

Second: Risk-Weighted Assets (Denominator of the Ratio):

4. Financial Statement Items: Risk Weights

5. The table for calculating risk-weighted assets in Item (Second: Risk-Weighted Assets) of Article (1) was replaced by Board Decision No. 82 dated 12/4/2023.

Third: Operational Risks
4. Article (2)
Concentration Risks
Article (3)
Financial Leverage
Article (4)
Balance between Assets and Liabilities

5. Liquid assets refer to cash, bank deposits, treasury bills, treasury bonds, and money market fund instruments.
6. Net outgoing cash flows refer to the value of outgoing cash flows minus incoming cash flows.

Article (5)
Liquidity Ratio
Article (6)
Amortization/Provisions Calculation for Doubtful Collectible Finances and Bad Debt Write-offs

Level of Payment Delay | Classification | Provision Ratio | Notes Marginal Returns/Interest Bad Debt Write-off Level of Payment Delay | Classification | Provision Ratio | Notes

Article (7)
Controls for Determining Financing Ratios
•
•
•
•

• Article (8)
  Disclosure Criteria

Article (9)
Periodic Reports