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4. Expected Credit Loss Provisioning

No: 42022533 Date(g): 23/11/2020 | Date(h): 8/4/1442
All finance companies are required to develop and document a robust methodology for estimating the expected credit losses inherent in its exposures and establish adequate provisioning to offset the realization of such expected credit losses. 
 
SAMA may request additional provisions, if based on its own assessment, the ECL provision is not considered to be adequate. SAMA may issue additional rules specifying regulatory provision requirements for finance companies.