Islamic Finance
Shari’ah Ruling on Hibat al-Thawab
December 12, 2022
Islamic Finance
Concept of Riba
December 12, 2022

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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