Version date: November 2022
CONTENTS
| INTRODUCTION |
|---|
| Section 1 | Context and objective |
| GUIDANCE ON SPECIFIC MODELS |
|---|
| Section 2 | Rating Models |
| Section 3 | PD Models |
| APPENDIX |
|---|
| Numerical thresholds |
TABLE OF CONTENTS
| Definitions and interpretations | 5 |
| 1 Context and Objective | 11 |
| 5 | Macroeconomic Models | 45 |
| 5.1 | Scope | 45 |
DEFINITIONS AND INTERPRETATIONS
The following terms shall have the meaning assigned to them for the purpose of interpreting these Standards and the related Guidance:
- Board: As defined in the CBUAE's Corporate Governance Regulation for Banks.
- Causality (written in lower case as "causality"): Relationship between cause and effect. It is the influence of one event on the occurrence of another event.
- CBUAE: Central Bank of the United Arab Emirates.
- Correlation (written in lower case as "correlation"): Any statistical relationship between two variables, without explicit causality explaining the observed joint behaviours. Several metrics exist to capture this relationship. Amongst others, linear correlations are often captured by...