Prevent adverse impact or systemic adverse impact of problem bank/banking system.
Restore the bank’s deteriorated financial/operational conditions within reasonable time.
Framework
Concerned bank shall carry out a schedule of corrective actions directed by BNG CB.
Based on parameter including capital to risk weighted assets ratio (CRAR), common equity tier 1 (CET1) ratio, net non performing Loan (NPL) and corporate governance.
Specify the trigger points and indicators for banks classified as category 1, 2, 3 or 4.
A bank company shall be subject to the PCA framework when any of its prescribed indicators within the specified range, or unacceptable quality of corporate governance.
Based on the annual audited financials of the period ended as at Dec. 31, 2024.
The audited annual financial statements and onward periodic supervisory returns submitted by the banks to BNG CB, including the ongoing on-site/off-site assessment.
Describe a list of mandatory/discretionary corrective actions/measures/restrictions.
Effectiveness
The provisions of the PCA framework will be effective from Mar. 31, 2025.
In Apr. 2024, BNG CB issued guide on amalgamation of bank-companies, #207257.
