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CM-1.2.29

Islamic bank licensees must set out their policy on country and transfer risks within their Board approved credit risk policy. Such policy must include:

a) the risk appetite/tolerance levels for country and transfer risks;
b) country exposure limits;
c) basis and frequency for periodic reviews and assessments;
d) the criteria for downgrading a country exposure from Stage 1 to Stages 2 or 3, and related provisioning policy; and
e) the policy for recategorization of exposure to a higher grade.
Amended: October 2022
Added: June 2022