Regulatory Alerts2023-06-05
Guidelines of IFRS 9 (2023)
The BNR issues these 2023 guidelines to standardize the application of IFRS 9 impairment requirements for financial assets. Institutions must classify exposures into three stages based on credit risk deterioration, applying twelve-month expected losses to performing assets with low credit risk and lifetime expected losses to those with significant deterioration or credit impairment. The framework mandates continuous assessment of low credit risk at each reporting date to determine stage transitions and ensure accurate provisioning against expected credit losses.
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BNR RESTRICTED Page 2 of 19 TABLE OF CONTENTS .......................................................................................3 .................................................................................3 ...................................................................................................................4 .........................................................................................4 ...............................................................................................................................4 ............................................................................5 ...............................................7 ..............................................................................7 .............................8 ...............................................................9 ....................................................................................................9 .....................................................................................................12 ....................................................................................................13 ............................................................................................................................13 ....................................................................14 ..............................................................................................14 ......................................................................................18 .......................................................................18 ..................................................19 ...............................................................................................................19 .................................................................................................19 ...................................................................................................19 ............................................................................................................19
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BNR RESTRICTED Page 5 of 19 (a) (b)
BNR RESTRICTED Page 6 of 19 No No
Yes Yes
No Yes Absolute credit quality Does the financial asset meet the definition of “low credit risk” at the reporting date? Performing Stage 1 12-month expected loss Deterioration of credit quality Stage 2 Lifetime expected loss Credit –impaired Stage 3 Lifetime expected loss
BNR RESTRICTED Page 7 of 19 (1) (a) (b) (2)
BNR RESTRICTED Page 8 of 19 (3) (4) (a) (b) (5) (6) (7) (a) (b) (c)
BNR RESTRICTED Page 9 of 19 (d) (e) (f) (a) (b) (a) (b) (c)
BNR RESTRICTED Page 10 of 19 (a) (b) (c) (d)
BNR RESTRICTED Page 11 of 19 (e) (f) (g)
BNR RESTRICTED Page 12 of 19 (a) (b) . (1) (2)
BNR RESTRICTED Page 13 of 19 (3) (4) (5) (6) (1)
BNR RESTRICTED Page 14 of 19 (2) (3) (4) (1) (2) (3) (4) (5) (6) (1)
BNR RESTRICTED Page 15 of 19 (2) (3) (4) (5) (a) (i) (ii)
BNR RESTRICTED Page 16 of 19 a. I. II. III. IV. b. c. d. (b) (i) (ii)
BNR RESTRICTED Page 17 of 19 (c) (i) (6) (7) (8)
BNR RESTRICTED Page 18 of 19 (a) (b) (a)
BNR RESTRICTED Page 19 of 19 (b) (c) (d)