1.3 Objectives
Effective from Jan 01 2024 - Dec 31 2023
To view other versions open the versions tab on the right
| The main objectives of a system of Ioan classification are as follows: | |||
| • | To highlight those loans that represent an above-normal credit risk; | ||
| • | To evaluate the degree of risk involved; | ||
| • | To develop a strategy or action plan for monitoring and follow-up on weak loans and for the recovery or liquidation of impaired loans and other such outstanding credits; | ||
| • | To provide essential information for the determination of adequate provisions for expected credit losses; and, | ||
| • | To bring a degree of uniformity and consistency in the method of classification of loans outstanding among Saudi banks. | ||