This Guideline sets out the prudential expectations of the AMF regarding sound and prudent management practices for credit risk associated with expected credit losses (ECL).
These best practices, presented in the form of expectations, are consistent with the guidance on credit risk and accounting for ECL and core principles of credit risk supervision of the Basel Committee on Banking Supervision (BCBS).
The first part of the guideline sets out the expectations for financial institutions that use the Internal Ratings Based (IRB) approach (Internal Ratings-Based Financial Institutions). The second part addresses the expectations applicable to insurers that use the standardized approach (Standardized Insurers).
