CBB proposed the revised Directive governing the requirements for credit risk management, as part of the Module CM of the Rulebook Volumes 1 and 2. The CBB Rulebook Volume 1 applies to conventional banks while Volume 2 applies to Islamic banks. Comment period on the consultations ends on March 07, 2019.
CBB requests all conventional banks, Islamic banks, audit firms, and interested parties to provide comments on the revised modules, which take into account the following enhancements:
- Impairment provision requirements of IFRS 9 with respect to the Financial Instruments Measurement and Recognition
- Various improvements in the BCBS standards relevant to credit risk, including the Supervisory Framework for Measuring and Controlling Large Exposures
- Other best practices in the area of credit risk management; for example, management of non-performing assets.
- Notification for Conventional Banks (PDF)
- Notification for Islamic Banks (PDF)
- Revised Module CM: Volume 1 (PDF)
- Revised Module CM: Volume 2 (PDF)
- Glossary for Volume 1 (PDF)
- Glossary for Volume 2 (PDF)
Comment Due Date: March 07, 2019
Keywords: Middle East and Africa, Bahrain, Banking, Islamic Banking, Large Exposures, Credit Risk, IFRS 9, NPLs, CBB
Previous ArticleECB Opinion on the CBM Supervision of Credit Reference Agencies
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.