Regulatory Alerts2017-12-29
Added · Updated
MAS Notice 612 Credit Files, Grading and Provisioning
MAS Notice 612 requires all banks in Singapore to maintain comprehensive credit files containing adequate information on borrowers and credit facilities. Banks must categorize credit facilities into five specific grades—pass, special mention, substandard, doubtful, and loss—and classify facilities as classified if principal or interest is past due for more than 90 days. The notice mandates that banks recognize loss allowances for expected credit losses in accordance with FRS 109, utilizing robust estimation methodologies and historical data. Locally-incorporated Domestic Systemically Important Banks must maintain a minimum regulatory loss allowance equivalent to 1% of the gross carrying amount of selected credit exposures net of collaterals.
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