87. Credit institutions should adopt an active approach to assessing and measuring 12-month ECL …

Credit institutions should adopt an active approach to assessing and measuring 12-month ECL that enables changes in credit risk to be identified in a timely manner and hence the timely recognition of those changes in ECL. In accordance with Principle 6, estimates of the amount and timing of 12-month ECL should reflect senior management’s experienced credit judgement, and represent an unbiased probability-weighted estimate of ECL by considering a range of possible outcomes

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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