Islamic Finance

Shari’ah Ruling on Hibat al-Thawab

December 12, 2022
Islamic Finance

Concept of Riba

December 12, 2022

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An allowance (provision) that is set up for expected credit losses (ECLs) on specific unimpaired loan/ receivables and other exposures for each of which such losses can be estimated. Typically, individually significant loans or exposures are accounted for by means of an individual allowance on an standalone basis as each has its own credit characteristics.

A specific provision is also known as an individual provision (as opposed to an collective provision/ general provision).

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