← Interest Free Banking Financing: Advanced

Portfolio management and provisioning

Module 06 / 7 · 50 min

Manage the IFB portfolio as a whole: concentration, classification and non-accrual, expected credit loss on and off the balance sheet, and reports that lead to action.

In this module you will learn to

Monitor counterparty and related-party exposures and concentration by sector, product and region
Classify financings under the current NBE directive and place non-performing financings and accrued unpaid profit on non-accrual
Compute expected credit loss for on-balance sheet exposures and for letters of credit and guarantees
Read a portfolio dashboard and propose three concrete actions for management, the Board or the regulator

Built on

Erudite Africa training outline: Interest Free Banking Financing, Level 3 Advanced (October 2026)
A typical Ethiopian bank's IFB financing business procedure (May 2025), unnamed: approval system, grading, follow-up, problem finance, write-off, portfolio management and exceptions
NBE Bank Corporate Governance Directive No. SBB/91/2024 (influential shareholder at 2%) and Risk Based Capital Adequacy Requirement for Banks Directive No. SBB/95/2025, issued under Banking Business Proclamation No. 1360/2025
NBE directives on interest free banking, large exposures, related parties, and asset classification and provisioning, in their current versions
AAOIFI Sharia'h Standards, including Sharia'h Standard No. 8 (Murabaha); the host bank's Sharia'h Advisory Committee rulings take precedence
IFRS 9 Financial Instruments: expected credit loss staging

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.