Regulatory Alerts2017-12-29
Added · Updated
MAS Notice 811: Credit Files, Grading and Provisioning
This notice cancels MAS Notice 811 dated 11 March 2005 and establishes requirements for finance companies in Singapore regarding credit files, grading, and provisioning. It mandates that finance companies maintain credit files for all borrowers, regularly review credit facilities, and categorise them into at least five credit grades: pass, special mention, substandard, doubtful, and loss. Finance companies must also recognise a loss allowance for expected credit losses (ECL) in accordance with Singapore Financial Reporting Standard 109 and maintain a minimum regulatory loss allowance equivalent to 1.5% of the gross carrying amount of selected credit exposures net of collaterals. Any shortfall between the accounting loss allowance and this minimum must be maintained in a non-distributable regulatory loss allowance reserve (RLAR) account.
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