Regulatory Alerts2018-07-03
Executive Circular on Using Macroeconomic Information and Factors Indicating Significant Increase in Credit Risk Under IFRS 9
The Magyar Nemzeti Bank issues this executive circular to standardize IFRS 9 impairment accounting practices among supervised financial institutions in Hungary. It mandates the use of MNB Inflation Report projections for forward-looking probability of default estimates and defines specific Stage 2 indicators for identifying significant increases in credit risk. The regulator requires institutions to document any deviations from these best practices and aligns prudential non-performing exposure classifications with IFRS 9 Stage 3 categories.
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