Regulatory Alerts2017-04-13
Added · Updated
Guidelines on Prudential Treatment of Problem Assets – Definitions of Non-performing Exposures and Forbearance
The Hong Kong Monetary Authority acknowledges the Basel Committee on Banking Supervision's new guidelines to harmonize the definitions of non-performing exposures and forbearance across jurisdictions. These definitions standardize credit categorization based on delinquency status and borrower financial difficulty, clarifying rules for collateral consideration and the transition between performing and non-performing statuses. The HKMA will review these recommendations and consult the industry on potential policy proposals for locally authorized institutions.