Banking Consultation on Prudential Treatment of Problem Assets
The Basel Committee on Banking Supervision has issued a consultation paper on the prudential treatment of problem assets including the definitions of non-performing exposures and forbearance.
In the wake of the financial crisis, the Basel Committee recognised that there may be significant differences in how banks identify and report their asset quality. The Basel Committee have therefore put forward a series of guidelines which aim to foster harmonisation in the measurement and application of two important measures of asset quality – "non-performing exposures" and "forbearance" - in order to promote consistency in supervisory reporting and disclosures by banks.
The Basel Committee welcomes comments from the public on all aspects of the proposals described in the document by Friday 15 July 2016.
A copy of the document may be accessed here.
For more information please contact Louise McNabola.
Date published: 18 April 2016