Press Release July 1, 1998
and Provisioning Requirements
The Banking Supervisory Authority in accordance to MOU with IMF amended related regulations to enhance prudential regulation on commercial banks.
The following details the core contents of the amendment that will go into effect July 1, 1998.
- Strengthening of prudential regulation on overdue loans to incorporate international standards
- Provisioning requirements for precautionary loans will be increased from 1% to 2%
- Non-tradable securities (privately-placed bonds, commercial papers and guaranteed bills) of trust accounts will be subject to loss provisioning (provisionsing for bond amortization)
Structural Reform Planning Unit
Financial Supervisory Commission