Book traversal links for Article (12): Non-Performing Assets and Write-Off
Article (12): Non-Performing Assets and Write-Off
C 3/2024 Effective from 25/7/202412.1 | LFIs must establish a strategy to manage non-performing assets and avoid maintaining elevated stocks of non-performing assets. This strategy must be approved and regularly reviewed by the Board, and be achieved by maximising recoveries and implementing timely write-offs. The strategy must be fully embedded into the management process of the LFIs and be the subject of regular reviews. |
12.2 | When the LFI has no reasonable expectation to recover the full or part of a facility exposure as per the terms of the legal agreement, it should undertake a full or partial write-off of that exposure. |
12.3 | The LFI must ensure that write-offs are timely and reflect realistic payment and recovery expectations. |