Regulatory Alerts2025-08-22
Decision on the Classification of Bank Balance Sheet Assets and Off-balance Sheet Items
The Executive Board of the National Bank of Serbia issued this Decision to establish the criteria and methodology for classifying bank exposures to manage credit risk. It mandates that banks define internal methodologies for assessing impairment and expected credit losses in accordance with IFRS 9, requiring quarterly reviews of asset quality and credit risk changes. The regulation defines specific classification categories from A to E based on payment delays and borrower financial health, while imposing strict restrictions on the reclassification of forborne exposures and assets acquired through foreclosure.
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