Annex 4 Guidance Notes for Prudential Returns For Loan Classification and Provisioning
Effective from Jan 01 2024 - Dec 31 2003
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| 1. | Annex 1 - Loan Classification | ||
| • | Columns 1, 4 and 7 - Total reflects gross loan amount before Provisions. | ||
| • | Columns 2, 5 and 8 - Previous quarter gross Loans. | ||
| • | Columns 3, 6 and 9 - Same Quarter previous year. | ||
| • | Totals in columns 7, 8 and 9 should agree with total for item 9 on the M-1 returns. | ||
| 2. | Annex 2 - Loan Provisioning | ||
| • | Column 1 - Shows gross loan outstanding amounts before Provisions. This should agree with item 9 on M-1 Return. | ||
| • | Column 2 - Interest in suspense to agree with 27.2 on M-1 return. | ||
| • | Column 3 - Shows general provisions to agree with 27.13 on M-1. | ||
| • | Column 4 - Shows specific provisions to agree with 27.12 on M-1. | ||
| • | Column 5 - Total Provisions for columns 2, 3 and 4. | ||
| • | Column 6 - Total provisions for same Quarter in previous year | ||
| • | Column 7 - This should reflect the charge (or credit) to net income on supervisory returns for the current Quarter. | ||
| • | Item 6 - This line should reflect the most recent available Quarter (indicate date) for which Accounting provision information is available. | ||
| • | Item 7 - This should reflect the adjustment (charge or credit) to supervisory Accumulated Retained Earnings arising from the difference between supervisory and accounting provisions. | ||
| • | Item 8 - Supervisory retained earnings at the end of the Quarter. | ||
| 3. | Annex 3 - Loan Classification Exceptions | ||
| • | Item I - This is a simple aging analysis of the loan portfolio of the bank in terms of the number of loans and the amounts (before any exceptions are made). | ||
| • | Item II - Analysis of Exceptions: | ||
| • | Column 1 - Shows gross amount of loans in each category - equals item 9 on M-1. | ||
| • | Column 2 - Shows # of loans on which exception is made | ||
| • | Column 3 - Shows Amount of Loans on which exception is made | ||
| • | Column 4 - Impact of the exception on proposed classifications - show + or i.e. net impact on classification grades. | ||
| • | Item III - Shows impact for top 10 loans on standard classifications. | ||