CM-1.8.10
Past version: Effective from 01 Jun 2022 to 31 Mar 2023
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The following exposures are considered as non-performing:
(a) All exposures that are ‘defaulted’ 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) The purchase or origination of a financial asset at less than its cash equivalent value; and
(d) All other exposures that are not defaulted 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 profit) 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.
Added: June 2022