BANK 4.1.3 Requirements — management of credit risk and problem assets

(1) A banking business firm must manage credit risk by adopting a prudent credit risk management policy that allows its credit risk to be identified, measured, evaluated, managed and controlled or mitigated.
(2) The policy must also provide for problem assets to be recognised, measured and reported. The policy must set out the factors that must be taken into account in identifying problem assets.
(3) Problem assets include impaired credits and other assets if there is reason to believe that the amounts due may not be collectable in full or in accordance with their terms.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).