Regulatory Alerts2025-09-12 | BPRD Circular Letter No. 20Implementation of International Financial Reporting Standard 9 (IFRS 9) - DPD Criteria for Banks and DFIs
This document establishes the Days Past Due (DPD) criteria and stage allocations required for IFRS 9 impairment provisioning across various banking and financial portfolios, including corporate, consumer, housing, SME, and agriculture lending. It mandates that provisions must be determined by selecting the higher of the IFRS 9 Expected Credit Loss (ECL) calculation or existing Prudential Regulation (PR) requirements for accounts in Stage 3. Financial institutions are explicitly advised that these DPD thresholds function as a backstop, and they must develop internal criteria tailored to shared credit characteristics rather than relying solely on facility-specific classifications.
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