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
"Unsecured Business Loans with Bad Credit"