On Jun. 25, 2025, BNG CB provided revised classification reporting forms (CL-1 to CL-5) which must be generated directly from each bank’s core banking system (CBS).
A new template (T_PS_Q_LN_PROV) for loan classification and provisioning reporting via enterprise data warehouse (EDW) has been uploaded on the BNG CB website.
Banks must report both domestic and offshore banking unit CL statements using the updated forms and EDW template starting from the quarter ending Sep. 30, 2025.
The definition of past due/overdue and the classification criteria for fixed term loans have been clarified, in order to ensure uniform interpretation and reporting.
Fixed term loans will be considered sub-standard if unpaid installments due within 3 months are equal to or exceed the total amount of installments due during that period.
BNG CB also reiterated that continuous loans must be fully settled or renewed within the original tenor; loans cannot be de-classified until past-due amounts are paid.
Banks may not roll excess balances into new or separate facilities during renewal.
The two directives are effective from Jun. 25, 2025.
On Nov. 27, BNG CB wrote regarding loan classification and IFRS 9.
BNG CB issued master circular with respect to loan classification and provisioning.
Namely, to implement expected credit loss (ECL) methodology-based provisioning system for banks, per IFRS 9, by 2027; circular states certain circulars superseded.
Specifies categories of loans and advances which are grouped into four categories including continuous loan, demand loan, fixed term loan, short-term agricultural credit.
Basis for loan classification (LC) involves objective criteria and qualitative judgment.
For finalization of CL, sub-standard, doubtful or bad/loss loads on the basis of both objective criteria and qualitative judgment will be treated as non-performing loans.
It also covers accounting of the interest of classified loans; maintenance of, and base for, provision; eligible collateral; in addition, general instructions and reporting.
Other Aspects
Instructions given in BRPD circular no. 14/2012 and its subsequent modifications through any circulars or circular letters will be superseded by this circular.
However, for provisioning of off-balance sheet exposures, the BRPD circular no. 06/2023 and any subsequent instructions related to this will have to be adhered to.
Effectiveness
This master circular, of Nov. 27, 2024, will be effective from Apr. 1, 2025.
Dec. 2024 Subcategories
On Dec. 22, 2024, BNG CB divided unclassified loans (standard) into 3 subcategories.
Specific codes must be used to report information on SBS-3, interest rate classifications; directive effective for quarterly reports from the reporting period Apr. to Jun. 2025 and for monthly reports, the directive will take effect from Jun. 2025.
Document dated Dec. 22, 2024, received from BNG CB Dec. 23, summarized Dec. 27.
In Jan. 2025, BNG CB issued circular re ECL-based loan classification, see #241407.
Jun. 2025 Revised Forms
On Jun. 25, 2025, BNG CB provided revised classification reporting forms (CL-1 to CL-5) which must be generated directly from each bank’s core banking system (CBS).
A new template (T_PS_Q_LN_PROV) for loan classification and provisioning reporting via enterprise data warehouse (EDW) has been uploaded on the BNG CB website.
Banks must report both domestic and offshore banking unit CL statements using the updated forms and EDW template starting from the quarter ending Sep. 30, 2025.
The definition of past due/overdue and the classification criteria for fixed term loans have been clarified, in order to ensure uniform interpretation and reporting.
Fixed term loans will be considered sub-standard if unpaid installments due within 3 months are equal to or exceed the total amount of installments due during that period.
BNG CB also reiterated that continuous loans must be fully settled or renewed within the original tenor; loans cannot be de-classified until past-due amounts are paid.
Banks may not roll excess balances into new or separate facilities during renewal.
The two directives are effective from Jun. 25, 2025.
