[2023] Strengthen the risk classification management of commercial banks' financial assets

5219 0
To further facilitate commercial banks to accurately identify and assess credit...

To further facilitate commercial banks to accurately identify and assess credit risk and accurately reflect the quality of their assets, the Banking Insurance Regulatory Commission of China and the National Bank of China jointly developed the "Financial Asset Classification Measures for Commercial Banks". , has been officially released. 11 days


[2023] Strengthen the risk classification management of commercial banks' financial assets

Credit risk is the most important risk facing the banking industry in Korea, and an appropriate risk classification system is the foundation and basis for effectively preventing and controlling credit risk. In 1998, the People's Bank of China reportedly published the Credit Risk Classification Guidelines, which proposed a five-level classification concept. In 2007, the former China Banking Regulatory Commission issued the "Credit Risk Classification Guidelines" to further clarify the five-level classification supervision requirements.


“In recent years, there have been significant changes in the asset structure of commercial banks in our country, and risk classification practices have faced many new situations and new challenges.” Head of relevant departments of China Banking Insurance Regulatory Commission. The Banking and Insurance Regulatory Commission of China and the People's Bank of China said that they have learned good international and domestic standards with the banking industry in our country. According to the current situation and regulatory practice, the development of this method will benefit the banking industry. industry. Preventing and effectively solving credit risks and improving the level of service to the real economy.



This method expands the subject of risk classification from loans to all financial assets with credit risk, defines classification standards for financial assets into five categories, establishes classification standards for retail assets and non-commercial assets, risk classification. Improvement of asset management and commercial bank risk classification management structure, etc.


Delinquency and credit impairment are important indicators of asset quality deterioration. Given that the current guidelines do not clearly define the relationship between the number of overdue days and the classification level, overdue financial assets are classified as special interest overdue for at least 90 days. 270 days or more is classified as fixed defect, and suspicious/overdue period of 360 days or more is classified as loss.


This measure will come into effect on July 1, 2023. This action determined the transition period after fully considering the institutional and market impact. After the official implementation of the measures, new businesses of commercial banks will be classified according to the requirements of the measures, and commercial banks will prepare a reclassification plan for businesses that occurred prior to the official implementation of the measures. plan. Quarterly, phased in, until December 31, 2025. All existing entities are reclassified according to the requirements of the method.


admin
up 2023年02月16日 09:36
next 2023年02月16日 13:11

Comments are closed.