CBB Amends Credit Risk Management Module for Banks
The Central Bank of Bahrain (CBB) issued amendments to the credit risk management (Module CM) and the financial crime (Module FC), and the anti-money laundering and combating financial crime (Module AML) modules under the CBB Rulebook volumes 1 and 2 for conventional and Islamic banks, respectively.
The amendments to the credit risk management module under the CBB Rulebook (Volumes 1 and 2) include the deletion of Section CM-1.10 related to provisions against sovereign debt and Appendix CM-1 “Sovereign Debt Provisioning Matrix” included in Part B of the CBB Rulebook. All banks are expected to calculate expected credit loss (ECL) against exposures to sovereign debt using the methodology and accounting policy under IFRS 9 and as per the requirements in Section CM-1.8 on classification and provisioning. The said amendments shall be part of the upcoming CBB Rulebook update and shall be available on the CBB website under the CBB Rulebook (Ad-hoc Communications) for Volumes 1 and 2. The amendments shall come in force with immediate effect.
Keywords: Middle East and Africa, Bahrain, Banking, Credit Risk, AML CFT, CBB Rulebook, Islamic Banking, Basel, Module CM, Module FC, Module AML, IFRS 9, ECL, CBB
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