<h1>Central bank drafts tougher credit-risk weights and moves to Expected Credit Losses with five-year glide-path, comments invited</h1> A central bank has issued two draft directions: (A) revising the standardised approach for credit-risk capital charges to introduce more granular risk weights for corporates, MSMEs, real estate, include timely-credit-card payers as retail, adjust credit-conversion factors for off-balance exposures, and calibrate risk weights for rated loans based on agencies' default histories and bank due diligence-changes expected to raise minimum regulatory capital robustness while benefiting segments like MSMEs and cards; (B) replacing incurred-loss provisioning with an Expected Credit Loss (ECL) framework with staging, prudential floors, EIR-based income recognition, and model-risk principles, entailing one-time provisioning but minimal long-term capital impact and a five-year glide-path. Stakeholder comments are invited by November 30, 2025 via the regulator's portal or by mail.