Regulatory Alerts2020-01-01
Classification and Provisioning of Loans Directives 2020
Issued under the Banking and Financial Services Act, 2017, these Directives mandate all licensed financial service providers to implement rigorous credit risk management frameworks and maintain adequate loan loss allowances. The regulations establish strict classification criteria that categorize credit facilities into pass, special mention, substandard, doubtful, or loss statuses based on delinquency thresholds and borrower financial conditions. Furthermore, the directives prescribe detailed procedures for identifying non-accrual loans, treating cash payments on impaired facilities, and managing the restructuring and restoration of performing status for restructured credit.
Share