The Central Bank of the UAE (“CBUAE”) seeks to promote the continuous development of an effective and efficient financial system. This regulation and the accompanying standards are issued pursuant to the powers vested under the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organization of Financial Institutions and Activities and its amendments.

Each LFI is required to implement a comprehensive framework to manage the credit risk it acquires to ensure its financial resilience. In this context, this regulation establishes the minimum acceptable practices for credit risk management and provisioning for LFIs.

Where this regulation or the accompanying standards include requirements to provide specific information, to take specific measures or to address a specific list of items ‘at a minimum’, the CBUAE reserves the right to impose additional requirements to those articulated in this regulation and the accompanying standards.

This regulation supersedes and replaces the circulars and notices as set out in Article 17 of this regulation.

The accompanying ‘Credit Risk Standards’ supplement the regulation and are mandatory and enforceable in the same manner as the regulation.