PD-1.3.24
Past version: Effective from 01 Apr 2008 to 30 Sep 2010
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For Paragraph PD-1.3.23, the following notes are provided:
a) Banks must follow the residual maturity groupings currently
followed under IFRS 7 (Guidance Note B 11 & B 12), but they
must also extend the periods to include 5-10 years, 10-20 years,
and 20 years and over (where the banks have exposures or
liabilities of such maturity).
b) In PD-1.3.23(h), banks must provide an ageing of past due,
non-performing or impaired Islamic financing contracts on
the following basis:
• Ageing schedule (over 3 months, over 1 year and over 3
years) of past due Islamic financing contracts and other
assets;
• Breakdown by relevant counterparty type or major
industry ;
c) For specific, collective, general and other impairment
provisions, the portion of provisions not allocated to specific
geographical areas should be shown separately.
d) The reconciliation of changes in provisions should show such
provisions separately.
e) "Highly leveraged and other high risk counterparties" follow the
categorisation given in the Basel Committee Paper of March
2001, entitled "Review of issues relating to Highly Leveraged
Institutions (HLIs)" which described HLIs as having the
following characteristics:
• They are subject to little or no regulatory oversight.
• They are generally subject to very limited disclosure
requirements and are not subject to rating by credit reference
agencies.
• HLIs often take on significant leverage, where leverage is
the ratio between risk, expressed in some common
denominator, and capital.
April 2008