Republic of Belarus:Technical Assistance Report-Asset Classification and Nonperforming Loan Regulation

Technical Assistance Report-Asset Classification and Nonperforming Loan Regulation
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Volume/Issue: Volume 2021 Issue 078
Publication date: April 2021
ISBN: 9781513577005
$20.00
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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Money and Monetary Policy , International - Economics , BCBS guideline , IMF Monetary , asset CLASSIFICATION , NONPERFORMING loan regulation , forbearance Classification , E , upgrading NPL , Nonperforming loans , Collateral , Credit risk , Global

Summary

The NBRB revised in 2018 its regulation on asset classification and provisioning (the Regulation). One of the main changes was the introduction of a new definition for NPLs based on the current framework of risk groups (RGs). This definition substitutes the previous term “problem assets.” One of the intentions of the replacement is to promote international comparability by using it as a financial soundness indicator (FSI). The reported levels of this new NPLs indicator are, however, relatively low and, more important, much lower than the previous indicator, based on problem assets. The new NPL indicator levels are relatively stable, around 4 percent. The previous indicator was also stable, but the levels were more than three times higher, about 13 percent.