Regulatory Alerts2011-10-27
Regulation on assets and conditional commitments classification approved by NBM Decision No. 231
The National Bank of Moldova issued Decision No. 231 to approve the Regulation on assets and conditional commitments classification, requiring banks to adjust their activities within three months of its January 1, 2012 effective date. The Regulation mandates that banks classify on-balance assets and conditional commitments subject to credit risk into five distinct categories: standard, supervised, substandard, doubtful, and compromised. This classification framework establishes specific criteria for assessing counterparty financial health, payment delays, and collateral quality to determine the required allowance for asset losses.
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