Regulatory Alerts2024-03-27
Guidelines for the Identification of Default
The Executive Board of the National Bank of Serbia issued these Guidelines to define the criteria and procedures for identifying default under the Decision on Capital Adequacy of Banks. The document mandates that banks apply specific rules for counting days past due, calculating materiality thresholds, and recognizing technical defaults across both Standardised and IRB approaches. It further requires institutions to treat exposures as defaulted when indications of unlikeliness to pay arise, such as through distressed restructuring, cession of receivables at a loss, or procedures similar to bankruptcy.
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