Islamic bank licensees must continue to apply the Sovereign Debt Provisioning Matrix (see Appendix CM-1) as a benchmark for the purpose of comparisons with the level of expected credit loss under IFRS 9. If the expected credit loss determined is lower than the amount identified through the Matrix, and the licensee intends to book the lower amount, then a meeting must be arranged with CBB to discuss the issues before booking these provisions.
Added: June 2022