Regulatory Alerts2007-06-13
Treatment of Provisions
The Bank of Namibia requires all banking institutions to calculate and report credit impairments under both IAS 39 and the existing BID-2 determination, ensuring that specific and total impairments are not lower than regulatory provisions. When IAS 39 figures fall short, institutions must raise additional specific provisioning or establish a General Credit-Risk Reserve to eliminate the deficit. Furthermore, qualifying IAS 39 portfolio impairments and reserves are recognized as secondary capital, with full compliance mandated effective July 1, 2007.
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