CM-1.8.10
The following exposures are considered as non-performing:
(a) All exposures, including purchased or originated credit impaired (POCI), that are in default or impaired under Paragraph CM-1.8.6, where applicable;
(b) All exposures that have experienced a downward adjustment to their valuation due to deterioration of their creditworthiness and classified as Stage 3 according to the applicable accounting framework;
(c) [This Subparagraph was deleted in April 2023]; and
(d) All other exposures that are not in default or impaired but nevertheless:
(i) Relate to a counterparty that has other exposures that are past due for 90 days or more; and
(ii) Where there is evidence that full repayment based on the contractual terms, original or, when applicable, modified (e.g. repayment of principal and interest) is unlikely without the licensee’s realisation of collateral, whether or not the exposure is current and regardless of the number of days the exposure is past due.
Amended: April 2023
Added: June 2022
Added: June 2022