BANK 4.7.6 Authority can reclassify assets

(1) The Regulatory Authority may at any time require a banking business firm to demonstrate that the firm’s classification of its assets, and its provisions, are adequate for prudential purposes.
(2) The Regulatory Authority may require the firm to reclassify its assets or increase the levels of its provisions if the authority considers that the asset classifications are inaccurate, or the provisions are inadequate, for prudential purposes.

Example

If the Regulatory Authority considers that existing or anticipated deterioration in asset quality is of concern or if the provisions do not fully reflect expected losses, the authority may require the firm to adjust its classifications of individual assets, increase its levels of provisions or capital and, if necessary, impose other remedial measures.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).