BANK 4.3.5 Impaired credits

(1) Impaired credit means a credit that is categorised as substandard, doubtful or loss. For the purpose of applying risk-weights, interest is suspended on an impaired credit.
(2) A large exposure that is an impaired credit must be managed individually in terms of its valuation, categorisation and provisioning.

Note For large exposures — see rule 5.3.1. For the provisioning of impaired credits — see rule 4.7.3.
(3) The review of impaired credits and other problem assets may be done individually, or by class, but must be done at least once a month.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).