The Circular allows banks a period of 4 years to reach the minimum general provisions prescribed as 1.5% of CRWA. It is our expectation that banks build up the deficiency in their General Provisions in equal installments over the 4 year period. Banks are encouraged to achieve the minimum requirement of General Provisions in a shorter duration if possible.

No bank is allowed to fall below its current level of General Provisioning during the 4 years transition period unless its general provisions exceeds the minimum requirement of 1.5% of CRWA.

The Central Bank will be assessing the progress towards building up the general provisions by the banks and will issue individual guidance to banks if required.