Back Custom print Link Text Only Rich Text Print

  • Non-accrual of Profit/Interest Income

    • RM-2.5.1

      Licensees are required to place on a non-accrual basis any facility where there is reasonable doubt about the collectability of the receivable irrespective of whether the facility is overdue or not. All accrued profit/interest, including related interest/profit earned but not collected and recognised as income in prior periods, for non-accrual assets identified in Paragraph RM-2.5.2 must be credited to an off-balance sheet special account in the licensee's records under the name 'profit/interest in suspense account' and not to the profit and loss account, i.e. it must not be recognised as income.

      July 2014

    • RM-2.5.2

      For the purpose of this Module, the following 'non-performing' categories of assets must be considered as non-accrual items:

      (a) Substandard;
      (b) Doubtful;
      (c) Loss; and
      (d) Any other credit facilities that are overdue for a period of less than 90 days but the licensee has doubts about their collectability.
      July 2014