Unsecured Business Loans with Bad Credit by ner17598

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Unsecured Business Loans with Bad Credit document sample

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									              9.1 Is there a formal                                                                                                                                                                9.3 Minimum required
                                                                                                             9.2 Classification of loans
               definition of "non-                           9.1.1 If yes, what is it?                                                                                                            provisioning of loans as
                                                                                                                     in arrears:
               performing loan"?                                                                                                                                                                       they become:

                                                                                                                  9.2.1 Substandard               9.2.2 Doubtful              9.2.3 Loss            9.3.1 substandard                9.3.2 doubtful             9.3.3 loss
Albania       yes                     not specified                                                          91 to 180                     181 to 360                 360+                    20                             50                         100

                                      Loan portfolios are divided into commercial loans and housing
                                      and consumption loans. Commercial loan classification is based
                                      on the clinets' payoff capacity and cash flows, while consumption
                                      loans are evaluated according to the fulfillment of debt payments.
                                      Regulation specifies that it is the debtor (not the loan) that has to
                                      be classified. Non-performing loans generally fall into the category
                                      of being sub-standard, doubtful, loss and loss by technical                                                                                             12 (with collateral); 25       25 (with collateral); 50   50 (with collateral) 100
Argentina     yes                     decision.                                                             90 to 180                      180 to 365                 365 +                   (without collateral)           (without collateral)       (without collateral)


                                                                                                             0-90 (non-performing and      90-180 (non-performing     180+ (non-performing and
                                                                                                             non-primary secured           and non-primary secured    non-primary secured
                                                                                                             loans); 90 to 180             loans); 180 to 270         loans); 270+ (performing
                                      non-performing loan is defined as loans more than 90 days              (performing and non-          (performing and non-       and non-primary secured
Armenia       yes                     overdue                                                                primary secured loans)        primary secured loans)     loans)                   20                            50                         100
                                                                                                                                                                                              20 (of unsecured balance,      50 (of unsecured           100 (of unsecured
                                                                                                                                                                                              including the interest         balance, including the     balance, including the
Aruba         no                                                                                             60 to 90                      90 to 180                  180 +                   receivable)                    interest receivable)       interest receivable)




Australia     no




Austria       no


                                      Non-working loans include:(a) non-accrual loans; (b) laons with
                                      principal and interet pyaments past due for 90 or more days; (c)
                                      loans with capitalized, refinanced or rolled-over interest; (d)
                                      overdrafts with interest payments past due for 90+ days and loans                                    unsatisfactory& critical
Azerbajan     yes                     without pre-defined repayment schedules.                          watch assets: up to 29             assets: 30 to 89           bad assets: 90+         6                              25-50                      100
                                      Loans on which payments of interest or repayments of principal
Bahrain       yes                     are 90 or more days past due.                                     30 to 60                           60 to 90                   90 +                    20                             50                         100
                                      Any loan which has been classified as substandard, doubtdul,
                                      bad/loss according to loan classification rule. The number of days
                                      is one of the two basis for loan classification criteria. The other is
Bangladesh    yes                     qualitative judgement                                                  90                            180                        365 +                   20                             50                         100


                                      Classfication and evaluation of credit risks are carried out
                                      depending on the borrower's ability to repay a debt, availability of
                                      adequate and duly executed real security, and outstanding debt
                                      duration. There are four risk groups: standard loan; sub-standard
Belarus       yes                     loan;problem loans; inefficient loans.                                 upto 90                       90 to 180                  180 +                   30                             50                         100
                                      No legal provisions with regard to the number of days in arrears;
                                      in practice most banks consider a loan as non-performing after 90
                                      days. This period may be shorter or longer, depending on the
                                      nature of the credit (e.g. short consumer loan vs. guaranteed real
Belgium       yes                     estate loan)



Bhutan        yes                     Loans whose principal and interest are due for more that 90 days
                                                                                                             91 to 180 (31-60 for          181 to 360 (61 - 90days    360 + (90 + days for
Bolivia       yes                     Any loan that has been classified in arrears                           microcredit)                  for microcredit)           microcredit)            20                             50                         100
Bosnia-
Herzegovina   yes                     days and other criteria                                                90 to 179                     180 to 269                 270+                    16-40                          41-60                      100
                                    Non-performing loans are those in arrears for more than 60 days
                                    and more. In classifying loans, interest accrued to suspense
Botswana         yes                account, and security value are also considered                       30 to 60              60 to 120                     120 to 180                    20                         50                      100
                                    A loan is defined as non-performing when full repayment is
                                    considered uncertain or when it is 60 days past due. The number                                                           60 +; 180+; or 360+
                                    of days in arrears is the main basis for asset classification and                                                         (dependig on the type of
Brazil           yes                provision                                                             30 to 60              60 to 180                     credit)                       20                         50                      100
British Virgin
Islands, The     no

Bulgaria         yes                not specified                                                         61-90                 91-180                        180+                          30-50                      50-75                   100
Burundi          yes                not reported                                                          90 to 210             210 to 365                    365 +                         none                       20                      40 to 100
                                    Loans on which payments of interest or repayments of principal
Cambodia         yes                are 90 or more days past due.                                         30 to 90              90 to 365                     365 +                         15                         45                      100


                                    Impairment is defined as any of the following conditions:1) a
                                    payment on a deposit or a restructured loan is contractually 90
                                    days in arrears; 2) a payment on any other loan (excluding credit
                                    card loan) is contractually 90 days in arrears unless the loan is
                                    fully secured, the collection of the debt is in process and the
                                    collection efforts are reasonably expected to result in repayment
                                    of the debt or in restoring it to a current status within 180 days
                                    from the date a payment has become contractulatt in arrears; 3) a
                                    payment on any loan is contractually 180 days in arrears. Any
                                    credit card loan that has a payment 180 days in arrears should be
Canada           yes                written off.
Cayman                              Generally loans are classified as non-performing after interest                                                                                         done on an individual loan done on an individual   done on an individual
Islands          no                 becomes 90 days past due                                           90                       90                            90                            basis                      loan basis              loan basis


                                    90 days from the moment the credit was not paid. The number of
                                    days in arrears is important for the portfolio of consumner loans
                                    and mortgages. For the rest of the portfolio, provisions depend on 30 to 60 (for consumer   60 to120 (for consumer        120+ (for consumer
                                    the quality of the collateral and/or the expected cash flow for the loans); 210+ for        loans) ; no distinction for   loans) ; no distinction for
Chile            yes                repayment of the debt.                                              mortgages               mortgages                     mortgages                     5 to 39                    40 to 79                80 to100
China            no




Croatia          yes
Cyprus           no                 no specific guidelines



Czech
Republic         no                                                                                       90 to 181             180 to 360                    360+                          20                         50                      100
Denmark          no
                                    Loans that are 90 days in arrears. Assessment also takes into
Egypt            yes                account collateral that are easily liquidated.                        90 to 180             180 to 360                    360+                          20                         50                      100
                 New rules are in
Estonia          process

                                    If the interest payable on an asset has been in arrears for 90
                                    days, the entire principal must be entered as non-performing. If
                                    the repayment of the principle of an asset or part thereof has been
                                    in arrears for 90 days, the entire principal becomes non-
                                    performing. If interest was paid as due, but not repayments of
                                    principal, the asset shall not be non-performing if the credit
                                    institution and the customer have agreed on a new payment
Finland          yes                schedule.



                                    Non-performing loans are given the term doubtful loans, and are
France           yes                those loans that are in arrears for 90 or 180 days
                                    Loans on which payments of interest or repayments of principal
Gambia, The      yes                are 90 or more days past due.                                         90 to 180             180 to 360                    360+                          20                         50                      100
                  "Adversely classified asset" is defined as asset classified as
Georgia     yes   Watch, Substandard, Doubtful and Loss                                 60-89        90-150        150+    30                        50                    100




Germany     no
                  Non-performing loans are defined based on a minimum of 180
Ghana       yes   days in arrears and other adverse circumstances                       90 to 180    180 to 540    540+    25                        50                    100
Gibraltar   no




Greece      no                                                                                                                                       50
                  Es el incumplimiento del pago de capital y/o de intereses en las
                  fechas establecidas, conforme el contrato respectivo. Para los
                  activos credicios que no tengan una fecha de vencimiento
                  determinada, esta se considerara a partir de la fecha cuando se
Guatemala   yes   hayan erogado los fondos.                                             31 to 90     91 to 365     365+    5                         20 to 50              100
Guernsey    no

                  When principal or interest on a past due account are due and
                  unpaid for 90 days or more or when interest charges for 90 days
Guyana      yes   or more have been capitalised, refinanced or rolled over.             90 to 180    180 to 360    360+    20                        50                    100
Honduras    yes   When loans are past due by 90 days                                    31 to 60     91 to 180     180+    10                        25 to 75              100
Hungary     yes                                                                         30 to 90     90 to 180     180+    10 to 30                  30 to 70              70 to 100
Iceland     no
                                                                                                                                                     100% of unsecured
                                                                                                                                                     portion plus 20% of
India       yes   not reported                                                          210 to 720   720 to 1800   1800+   10% of outstanding amount secured portion       100%
Indonesia   yes                                                                         90 to 180    180 to 360    360+    20                        50 - 75               100


                  Non-performing loans are assets whose principal or interest is
                  due and unpaid for 90 days or more ; or interest payments equal
                  to 90 days' interest or more than been capitalised, rescheduled or
                  rolled over; or payment in full of principal or interest is not
Ireland     yes   expected even if principal or interest is less than 90 days overdue

                  (1) Loan that does not meet the original payment schedule (2)
                  Loans where the financial situation of the company or the industry
Israel      yes   has worsened since the loan was granted




                  Non-performing loans include bad debts; substandard loans,
                  loans being restructured, and restructured loans where each is
                  classified based on various criteria. Each bank decides when a
Italy       yes   loan should be classified in arrears.
                                                                                                                                                                 The greater of 1% of total   The greater of 1% of total The greater of 1% of
                                                                                                                                                                 credit or 20% of estimated   credit or 50% of           total credit or 100% of
Jamaica         no                                                                         90 to 180    180 to 350                     350+                      net loss                     estimated net loss         estimated net loss
                      "Risk Management Loans" are used to classify non-performing
                      loans, and the number of days in arrears are used as the primary
Japan           yes   indicator for this classification.                                   yes
                                                                                                                                                                                              100% of unsecured
                                                                                                                                                                                              portion . This provision
                                                                                                                                       Whenever the bank                                      may be incresaed
                                                                                                                                       obtains evidence that     50% of uncollateralized      gradually to reach 100%
Jordan          yes   180 days past due                                                    180 to 360   360+                           loan is not recoverable   part of the loan             of the loan value          100% of loan value

Kazakhstan      yes                                                                        up to 30     30-90                          90+                       5-10                         20-50                      100

                      When principal or interest on a past due account are due and
                      unpaid for 90 days or more; or when interest charges for 90 days                                                                           Suspension of interest       Net realisable value of
Kenya           yes   or more have been capitalised, refinanced or rolled over.            90 to 180    180 to 360                     360+                      income                       security                   100



                                                                                                                                       That portion of credit in
                                                                                                        180+. That portion of credit   excess of the amount
                                                                                                        in excess of the amount        expected to be collected
                                                                                                        expected to be collected       from customers classified
                                                                                                        from customers classified      as substandard that must
                                                                                                        as substandard that is         be accounted as a loss,
                                                                                                        expected to be a loss, but     because collection is not
                                                                                                        has not yet been realized      possible in a foreseeable
Korea           no                                                                         90 to 180    as such                        period.                   20                           75                         100

                      Credit facilities are considered non-performing if: 1) the debit
                      balance per account exceeds higher than 10% of the drawing
Kuwait          yes   limiton; 2) if principal and interest that are due have not been paid 90 to 180   181 to 365                     365+                      20                           50                         100
Kyrgyzstan      no                                                                         30 to 60     60 to 120                      120+
Latvia          yes   not reported                                                         31 to 90     91 to 180                      180+                      30                           60                         100



                                                                                                                                                                                              Partial provision is
                                                                                                                                                                                              required, the interests
                                                                                                                                                                                              and charges are
Lebanon         no                                                                                                                                               Interest accrual ceases      considered as unrealized 100
Lesotho         no                                                                         90 to 180    180 to 360                     360+                      20                           50                         100
Liechtenstein   no                                                                                                                                               20                           50                         100

Lithuania       yes   More than 30 days delayed payments of interest and principal         31 to 90     91 to 180                      180+                      20                           50                         100




Luxembourg      yes




                      Any asset with overdue interest or commission payment or
Macau           yes   repayment of principal for more than 90 days
Macedonia       yes   Loans for which interest is past due by more than 90 days            61 to 150    151 to 365                     365+                      25                           50                         100


                      Credit facilities that are not generating income and meets one of
                      the following criteria: 1) a non-seasonal credit facility that has
                      principal or interest past due by 180 days or more; or if past due
                      principal or interest have been capitalized, refinanced,
                      renegotiated, restructured or rolled over. 2) a seasonal credit
                      facility that has overdue payments or more than 90 days or that
                      repayments within 90 days after the ends of the sales period are
                      insufficient to cover capitalized and/or accrued interest charged
Malawi          yes   during the period of the credit facility                             90           180                            360+                      20                           50                         100
                    A loan is classified as non-performing when the principal or
                    interest is due and unpaid for 6 months or more from the first day
Malaysia      yes   of default.                                                            90                         180                         365+                       20                           50                          100
Maldives      yes   not reported                                                           90                         360                         720
                    Loans that have been placed in the 'doubtful' and 'loss' category                                                                                                                     total outstanding less
Malta         yes   plus loans which are past due 90 days and over                         60 to 89                   90+                         at bank's discretion       at bank's discretion         recoverable amount          irrecoverable amount

                    When principal or interest on a past due account are due and
                    unpaid for 90 days or more; or when interest charges for 90 days
Mauritius     yes   or more have been capitalised, refinanced or rolled over.              90 to 180                  180 to 365                  365+                       20                           50                          100
Mexico        yes   not reported                                                           30 to 60                   60 to 90                    90 to 180                  1                            20                          100




Moldova       no                                                                                                                                                             30                           75                          100
Morocco       yes   not reported                                                           not reported               not reported                not reported               20                           50                          100
Namibia       yes   Loans that are past due 180 days                                                                                                                         0                            50                          100
Nepal         no                                                                           720 to 1080                1080 to 1800                1800+                      25                           50                          100
Netherlands   no
                    Impaired assets are typically loans whose principal and/or interest
                    are at risk of not being fully repaid to the bank. Ever bank is
                    required to disclose the amount of its impaired assets and the
                    level of provisioning aginst these impaired assets. Loans are
New Zealand   yes   classified as past due after 90 days

                    When principal or interest on a past due account are due and
                    unpaid for 90 days or more; or when interest charges for 90 days
Nigeria       yes   or more have been capitalised, refinanced or rolled over.              90                         180                         360                        10                           50                          100




Oman          yes   Loans that past due for over 90 days                                                                                                                     25                           50                          100
                    If loans are 30 days in arrears for single payment debts; 90 days
Panama        yes   in arrears for installments                                                                                                                              not required                 50%, minus collateral       100, minus collateral


                    Es básicamente la capacidad de pago del deudor, que se
                    observa tanto en factores cualitativos como
                    cuantitativos, siendo las garantías de carácter suplementario. Los                                                                                       group 1 (potential problem
                    días de atraso en el pago es uno de los factores que se toman en                                                                                         loans): 5 (if without
                    cuenta. Se adjunta el Reglamento para la Evaluación y              61 to 120 (9 to 30 for         121 to 365 (61 to 120 days 365+ (120+ days for         guarantees); group 2: 25 (if                             100 (if without
Peru          yes   Clasificación del Deudor y la Exigencia de Provisiones             microcredit)                   for microcredit)           microcredit)                without guarantee)           60 (if without guarantee)   guarantee)
                    Loans whose principal and interest are due for more that 30 days
                    after due date or after they have become past due; or for loans        Secured loans past due by
                    payable in installments, the total outstanding balance thereof shall   more than 180 days;                                    Past due loans the
                    be considered non-performing when 3 or more installments are in        unsecured loans past due Depends on various            interest of which is unpaid
Philippines   yes   arrears.                                                               by more than 90 days      criteria and not no. of days for a period of 180 days    25                          50                          100
                    Loan whose principal or interest is due for over 30 days; or if the
                    financial position of the debtor could potentially negatively affect
Poland        yes   the repayment schedule                                                 30 to 90                   90 to 180                   180+                       20                           50                          100




Portugal      no
Puerto Rico    yes                                                                                                                                                            15                    50                          100
Qatar          no                                                                          90 to 180                    180 to 360                  360+                      0                     25                          70




Romania        no                                                                          1 to 7                       7 to 30                     30+                       20                    50                          100


                                                                                           6 to 30 for collateralized   31 to 180 for collateralized
                                                                                           loans and no more than 5     loans, and 6 to 30 days for
                     Non-performing loans refer to substandard, doubtful and loss          days for inadequately        inadequately collaterized    180+ regardless of the
Russia         no    loans                                                                 collaterized loans           loans                        quality of collateral    20                    50                          100
                     Loans whose principal and interest are past due by more than 90
Rwanda         yes   days                                                                  90 to 180                    180+                        180+                      20                    50                          100




                     Loans whose principal and interest are past due by more than 90
Salvador, El   yes   days                                                                  60                           60 to 180                   180+                      10                    50                          100
Samoa                Loans whose principal and interest are past due by more than 90
(Western)      yes   days                                                                  90 to 180                    180+                        180+                      20                    50                          100

                     Generally loans are classified as non-performing after interest
                     becomes 90 days past due, and banks are required to cease
Saudi Arabia   no    interest revenue accrual into the income statement
Seychelles     no                                                                          120 to 180                   180 to 365                  365+                      0                     50                          100

                     Loans are considered classified when principal or interest
                     payments are 3 months or more in arrears; loans to borrowers
Singapore      yes   with weak financials may also be considered as classified                                                                                                10                    50                          100
Slovakia       yes                                                                         90 to 179                    180- 359                    360+                      20                    50                          100
                                                                                                                                                    E group: loans that are
                                                                                           C-group :31 to 90            D group: 91 to 180 days     assesed as not to be
Slovenia       no                                                                          (occasionally 91 to 180)     (occasionally 181 to 365)   repayed                   25 (min 15, max 40)   50 (min 40, max 99)         100


                     Non-accrual loans against which a specific provision has been
                     created; where contractual payments of principal and interest are
Solomon              90 days or more in arrears; and where the fair value of security is
Islands        yes   insufficient to cover payments of principal and accrued interest.                                                                                        20                    50                          100
                     Loan or advance in respect of which it is no longer prudent to
South Africa   yes   credit interest receivables to the income statement                   90 to 180                    180 to 365                  365+                      20                    50                          100

                     Loans in arrears, suspension of payment, creditors doubtful due
Spain          yes   to certain circumstances                                                                                                       630+                                                                        100
                     When principal and/or interest have been in arrears for 90 days or
Sri Lanka      yes   more                                                               180 to 365                      365 to 540                  540+                      20                    50                          100
                     Loans whose principal and interest are past due by more than 90
St. Kitts      yes   days                                                               90                              180                         365                       10                    50                          100
                     Loans on which interest and amortization of overdrafts have been                                                                                                               written down to             written down to
Sweden         yes   due for payment for more than 60 days                                                                                                                    not applicable        recoverable amount          recoverable amount
                     Loans whose principal and interest are past due by more than 90
Switzerland    yes   days                                                               not applicable                  90                          case by case              case by case          case by case                case by case
                     Loans whose principal and interest are past due by more than 90
Taiwan (China) yes   days                                                                                                                                                     0                     50                          100

                                                                                                                                                                                                    30 (if fully provisioned) 75
Tajikistan     yes   not reported                                                          30 to 60                     60 to 180                   180+                      5                     (if not fully provisioned)   100

                     Loans for which the debtor has defaulted principal and/or interest
                     payment for the period of over 3 months from the contractual due
Thailand       yes   date, or the date of demand by the commercial bank for call loans 90 to 180                        180 to 365                  365+                      20                    50                          100
                                                                                           90 (fully secured); 30
                      Non-performing loans are those that are classified as                (partially                 720 (fully secured); 90                             20 (of uncollateralized   50 (of uncollateralized   100 (of uncollateralized
Tonga           yes   substandard, doubtful and loss                                       secured/unsecured)         days (partially secured)   180+ (for all)           balance)                  balance)                  balance)
                      Where payment of principal or interest which is due and payables
                      on any credit facility made or advanced by a license has not been
                      made or effected for a period of 90 days, such credit facility is
Trinidad &            considered non-performing unless it is fully secured and is in the
Tobago          yes   process of collection                                              90 to 179                    180 to 365                 365+                     20                        50                        100




Turkey          no
                      "Non-performing loans" represent the actual bank losses where
                      delay in repayment of the loan principal or interest exceeds 180
Turkmenistan    yes   days.                                                                30 to 90                   90 to 180                  180+

Turks and
Caicos Islands no



United
Kingdom         no




                      Informally, all loans and leases 90 days or more past due plus all
                      loans and leases in non-accrual status are considered as non-
United States   no    performing                                                                                                                                          15                        50                        100


                      Each banks have their own definitions, however, according to the
                      RBV policy guideline, non- performing loans are those loans
                      which have been past due for more then 90 days, unsecured, no
                      legal actions has commenced and timely realisation of collatorial
Vanuatu         yes   or successful enforcement of the guarantee can be expected.       30 to 90                      90 to 180                  180+                     20                        50                        100
Venezuela       no                                                                         90 to 120                  150 to 180                 360+                     10                        30                        95




                                                                                                                       180 to 360 (secured
                                                                                           1 to 180 (secured loans); 1 loans); 90 to 180         360+ (secured loans);
Vietnam         no                                                                         to 90 (unsecured loans)     (unsecured loans)         180+ (unsecured loans)
Yugoslavia      yes                                                                        121                        241                        540+                     50                        75                        100
Zambia          yes   90 days or more in arrears                                           90 to 119                  120 to 179                 180+                     20                        50                        100
                                                                                                 9.6 If one loan is non-
                                                                          9.5 Ratio of non-       performing, are other
                     9.4 Other classification systems                    performing loans to    loans of a multiple-loan
                                                                             total assets        customer classified as
                                                                                                    non-performing?


                                                                        39.90%                 yes




                                                                        9.40%                  yes




                                                                        3.00%                  no



                                                                        8.00%                  no
Provisioning is assessed against the level of impaired assets; likely
trends in banks asset quality under expected economic conditions; the   0.9% (impaired
type and value of security held; and the level of banks' capital and    assets to total
existing provisions                                                     assets)                yes


 There are no explcit legal standards but recommendations. According to
the Austrian Account Act certain valuation adjustments have to be made
under certain circumstances. The bank auditor has to examine the
accuracy of the valuation including whether required depreciations, value
adjustments and provisions have been made. The report of the auditor
shall be communicated to the managers and to the supervisory bodies.      2.20%                no




Five categories of classification: satisfactory assets; watch assets;
unsatisfactory assets; critical assets; bad assets                      24.20%                 no

                                                                        12.80%                 no




                                                                        43.07%                 no




                                                                        confidential           no


No legal provisions with regard to the number of days in arrears; in
practice most banks consider a loan as non-performing after 90 days.
This period may be shorter or longer, depending on the nature of the
credit (e.g. short consumer loan vs. guaranteed real estate loan)       0.55%                  no
Delinqunecy periods are followed and not these standards. Provisions
are as follows: 6-12 months -10%; 13-18 months - 15%; 19-24 months -
30%; 25-36 months - 50%; 36+ - 100%.                                    12.00%                 no

                                                                        5.70%                  yes

                                                                        15.00%                 yes
                                                                             1.33%                  yes




                                                                           3.40%                    no
No system of classification; all supervision is conducted offsite based on
financial statements                                                       not available            no
Debt with principal or interest arreas payments past due up to 30 days is
defined as "watch exposure".                                               6.35%                    yes
                                                                             14.00%                 yes

                                                                             3.40%                  yes




If a loan has no longer an assurance for repayment of interest and
principal, the loan should be written off as a charge in the income
statement in the period in which impairment is identified.                   0.68%                  no

Provisioning done on an individual loan basis                                not reported           not reported




                                                                             1.42%                  no
                                                                                                    no


According to regulation loans are classified into five risk groups (A,B,C,D
and E). Risk group A is the least risky or non risky and a loan is classified
in this group when its number of days in arrears is 0-45; risk group B 45-
60 days in arrears; risk group C 60-120 days; risk group D 120-180 days
and risk group E over 365 days in arrears.                                    15.50%                no
No specific guidelines                                                       not reported           no
                                                                             27% (after the
                                                                             deduction of the
A fourth category is "watch" for loans in arrears for 30 to 90 days, and are value of collateral,
provisioned at 5%                                                            0.14)                  yes
No formal definition                                                         0.10%                  no

                                                                             7.20%                  yes

No minimum provisioning requirement                                          2.00%                  no




The amount of specific provisions are considered on a loan to loan basis.
A specific loan loss provision is made once it has become probable that
no payment will be made on the principal of the claim.                    0.90%                     no

Provisions for doubtful accounts should be charged against assets based
on a review of the loan file to determine the chances of recovery,
regardless of the currency in which they are denominated                6.55%                       yes

                                                                             not available          no
Debt with principal or interest arreas payments past due up to 30 days is
defined as "watch loan".                                                         12.50%           no


According to the imparity principle, all forseeable (realised and
unrealised) risks and losses (but not unrealised profits) which have arisen
up to the balance sheet date must be taken into account even if they
become known only between the balance sheet date and the date on
which the financial statements are prepared. There are three types of
provisions: 1)Specific provisions which are made against individual loans
in the case of visiblly ascertainable risks; 2) General provisions are made
for risks which form a latent element in a bank's loan book but which are
not yet individually identifiable. These provisining is against a portfolio of
debt and not individual debt; 3) Accrued expenses which is risk
provisioning for business entailing contingent liability (e.g. guarantee). If
losses are anticipated in these, accrued expenses must be made to take
them into account.                                                                                no

                                                                                 8.34%            yes
                                                                                 <0.1%            no
                                                                            problem loans are
No relationship between length of arrears and classification in categories. approx. 4% of total
Depending on length of arrears provisions range from 10% to 40%.            assets of all
Losses are written off once recognized as such                              commercial banks      no




                                                                                 7.14%            no
                                                                                 <0.1%




                                                                                 14.00%           no
                                                                                 not available    yes
                                                                                 8.20%            yes
                                                                                 2.10%            no



                                                                                 15.00%           no
                                                                                 28.10%           yes




                                                                                 not available    no
Non-performing loan is defined as (1) Loan that does not meet the
original payment schedule (2) Loans where the financial situation of the
company or the industry has worsened since the loan was granted.
Classification based on definitions and not no. of days                          3.80%            yes


Bad debts are exposures vis-à-vis persons that are insolvent regardless
of the bank's forecast of loss. Substandard loans are based on: a
subjective criterion which implies that the debtor's difficulty in performing
his contractual obligations is considered to be temporary and it is
expected to be solved in a reasonable amount of time, and an objective
criterion which refers to the number and size of the overdue instalments.
The latter criterion is applied only when the loan has not been classified
as substandard. Loan being restructure are those for which the decision
to grant the restructuring is still pending after one year from the request
for restructuring. Restructured loans are those being modefied in their
maturity and rescheduled at a subsidized rate. Minimum provisions are
required only for country risk                                                11.90%              yes
                                                                             2.80%           no



                                                                             3.90%           N




                                                                             not reported    yes
Doubtful - payments that are 30-60 days overdue; high risk doubtful -
payments are 60-90 days overdue                                              1.00%           yes




                                                                             35.00%          no




                                                                             8.60%           yes




                                                                             10.10%          yes
                                                                             4.00%           no
                                                                             6.00%           not reported


Substandard:continuous delay in repayments of due repayments for a
period of 90 days; Doubtful: not meeting commitments to pay on due
dates after the debt is rescheduled for a period that exceeds 90 days
from maturity date; Loss: no existing collateral; loss of contact with client;
incapacity and insolvency of client; Loss:                                     5.15%         no
                                                                             29.00%          yes
Not reported                                                                 1.00%           no

                                                                             5.00%           yes


Problem debt is mainly categorised into doubtful and irrecoverable debt.
Banks decide the appropriate classification for each debt. Both doubtful ratio of doubtful
and irrecoverable debts are to be covered by value judgements which are loans to total assets
to be deducted directly from the assets concerned.                       = 0.2%               yes
Loans are classified into four groups depending on their overdue period:
Group I: Overdue upto 3 months; Group II: Overdue for more than 3
months and upto 12 months; Group III: Overdue for more than 12 months
and upto 18 months; Group IV: Overdue for more than 18 months. NPL
are Groups II to IV.                                                     7.60%               yes
                                                                             44.00%          no




                                                                             3.16%           no
A loan is classified as non-performing when the principal or interest is
due and unpaid for 6 months or more from the first day of default.               7.90%               no
                                                                                 not reported        no

                                                                                 5.50%               yes




                                                                                 4.90%               no
                                                                                 17.50%              yes



Qualitative assessments used for classification of loans in arrears.
Substandard: borrower's financial condition is unfavorable and is
deterriorating; the collateral (if any) is insufficient; other adverse factors
whohc cause concern regarding the ability of hte borrower to repay the
credit in accordance iwth the existing repayment terms. Doubtful:
weaknesses exist which make repayment highly questionable and
improbabale. But because of certain important and reasonably specific
pending circumstnaces whihc may work to the advantage of the credit,
classification as lossis deferred. Loss: credit is uncollectible.                8.90%               no
                                                                                 7.00%               yes
                                                                                 7.50%               no
                                                                                 21.00%              no
Not reported                                                                     not reported        not reported


Impaired assets are typically loans whose principal and/or interest are at
risk of not being fully repaid to the bank. Ever bank is required to disclose
the amount of its impaired assets and the level of provisioning aginst
these impaired assets.                                                        0.45%                  no




                                                                                 8.18%               no


                                                                                                     no; depends on the merits
                                                                                                     of each account and also
                                                                                                     on the financial condition
Loan classification is left to the discretion of the examiner                    5.90%               of the borrower
The superintendency is currently evaluating a regulation on criteria for
loan classification                                                              2.68%               no


                                                                                 18.14% (without
                                                                                 potential problem
                                                                                 loan portfolio);
                                                                                 33.63% (with
                                                                                 potential problem
100 (if without guarantee)                                                       loan portfolio)     yes




                                                                                 13.83%              no



                                                                                 4.70%               yes


Five categories ranging from being past due by 3 months to over 3 years:
class I - 90 days; class II - 90 to 180 days; class III - 180 to 365 days;
calss IV - 365 to 1080 days; class V - 1080+; Provisions are determined
depending on status of collateral: class I - 1% (with or without collateral);
class II - 10% (25 % without collateral); class III - 25% (50% without
collateral); class IV - 50% (100% without collateral); class V - 100% (with
or without collateral)                                                        1.19%                  no
                                                                            not available         no
                                                                            not available         yes
                                                                                                  no; a new guideline is
                                                                                                  awaiting approval and
                                                                                                  would change the
A special matrix is used for loan classification                            40.00%                response to yes



                                                                            20% (reflects
                                                                            classified loans to
                                                                            total assets only)    yes

                                                                            30.00%                yes


The classification system has 5 categories: A - normal loans; B - loans
with occasional problems amd past due up to 30 days, which require 1%
provisioning; C - borrower with weak financial situation and past due up to
60 days, which require provisioning of 10%; D - borrower with no capacity
to pay the entire loan and is past due 60 to 180 days, which require
provisioning of 50%; and E - the probability of total loss is high, the loan
is more than 180 days past due, and a judicial process may have been
started. Provisioning at 100%.                                               2.91%                yes

                                                                            0.50%                 yes



Banks use a 5 level risk classification system based on qualitative
judgements, which are also used to decide on provisioning                   3.00%                 no
                                                                            not reported          no
                                                                                                  no; performance of loan
Loans are considered classified when principal or interest payments are 3                         and borrower's repayment
months or more in arrears; loans to borrowers with weak financials may                            ability are taken into
also be considered as classified                                          not reported            consideration
                                                                            9.58%                 yes

Group A - repayment overdue by 15 days; B - repayment overdue by 30
days                                                                        5.60%                 no



Definitions of classified loans are not specified in terms of days but
Central Bank has advised banks that it would normally expect non-
accrual loans to reflect in "doubtful" and restructured in "substandard"    1.60%                 yes

                                                                            4.47%                 yes
Classification and provisioning requirements for standard and doubtful
loans are calculated based on a timeframe; 90 (0%) - 180 (25%) - 360
(50%) - 540 (75%) - 630 (100%)                                              <0.1%                 yes

                                                                            not reported          no

                                                                            1.00%                 no

                                                                            not reported          no
Classification and provisioning of loans in arrears are done on a case by
case basis                                                                  6.00%                 no

Classification is done on a case by case basis                              not available         no



                                                                            56.70%                no




                                                                            3545.00%              yes
                                                                              6.21%                 yes



"Default of debtor" depends on various criteria; one of which is loan being
past due by more than 30 days. The quality of collateral is taken into
account to determine provisioning requirements.                             2.10%                   no


Debtor of default occurs when two consequently monthly installments are
not paid or one of the installments is not paid within 60 days following the 2.1% (net past due
maturity date. Tthe quality of collateral is taken into account to determine loans of the banking
provisioning requirements                                                    sector)              no



                                                                              0.30%                 yes



Classification and provisioning is upto the institution and its accountants   not reported          not reported

                                                                              Of the top 9 banks
No differentiation of past due loans or their provisioning is required.       (65% of banking
Matter is upto the institution and its accountants                            sector), ratio is 2.2% no


For credit classification purposes, there is a policy that applies to retail
consumer credit only. There is no requirement for other types of credit.
The policy for retail credit is: Open & closed-end credit 90 days in arrears,
substandard. Open-end 120 days in arreas, loss. Closed-end 180 days in
arrears, loss. These are the gemeral requirements. Single payment and
demand loans are classified as arrears if interest due is unpaid for 30
days or more. Open-end and closed-end credit is classified in arrears
when two payments have been missed.                                           0.60%                 no




                                                                              3.30%                 no
                                                                              1.62%                 no

Four groups of classified credit items. Sub-standard loans would be
equivalent to group 2 where secured loans are overdue by less than 180
days, and non-secured loans are overdue by less than 90 days. Doubtful
loans are equivalent to group 3 where secured loans are overdue from
180 to 360 days, and unsecured loans are overdue from 90 to 180 days.
Loss loans are equivalent to group 3 where secured loans are overdue by
more than 360 days, and unsecured loans are overdue by more than 180
days                                                                    not reported                no
                                                                              7.90%                 yes
                                                                              2.00%                 no

								
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