13.1

LFIs must have methodologies and analytical solutions to measure, analyse and categorise Credit Risk and compute the associated provisions. LFIs must be able to analyse Credit Risk at several granularity levels including Credit Facility level, Obligor level, segment level and portfolio level in order to identify credit concentration risk.
 

13.2

Where an LFI makes use of models for decision making, it must comply with separate modelling standards and guidance issued by CBUAE. Each LFI must demonstrate that its models are fit for purpose and adequately calibrated to effectively support the associated risk and business decisions.