Article 2 A bank shall, in accordance with the principle of prudent accounting, reasonably estimate the possible losses of loans and make provision for loan losses in a timely manner. Loan loss preparation includes general preparation, special preparation and special preparation. General reserve is a reserve drawn according to a certain proportion of the total loan balance, which is used to make up for unidentified possible losses; Special preparation refers to the preparation for making up special losses according to the loss degree of each loan after the loans are classified according to the Guiding Principles of Loan Risk Classification. Special provision refers to the provision for a country, region, industry or a certain type of loan risk.
Article 3 The scope of loan loss reserve refers to the assets that bear risks and losses, including loans (including mortgage, pledge, guarantee and other loans), bank card overdraft, discount, bank acceptance bill advances, letter of credit advances, guarantee advances, import and export bills, borrowing funds and so on.
Article 4 A bank shall make provision for general reserves on a quarterly basis, and the year-end balance of general reserves shall not be less than 65,438+0% of the year-end loan balance. When calculating the bank's capital adequacy ratio, the general reserves drawn by the bank should be included in the bank's secondary capital according to the relevant principles of the Basel Accord.
Article 5 Banks may draw special reserves on a quarterly basis with reference to the following proportions: 2% for loans of concern; For subprime loans, the provision ratio is 25%; For doubtful loans, the provision ratio is 50%; For loss loans, the provision rate is 100%. Among them, the loss reserve for subprime and doubtful loans can be floating by 20%.
Article 6 Special reserves shall be set by banks according to the special risk status, risk loss probability and historical experience of different types of loans (such as countries and industries).
Article 7 The loan loss reserve shall be uniformly accrued by the Head Office. Branches set up by foreign banks in People's Republic of China (PRC) can uniformly withdraw general reserves from their head offices, and the branches can separately withdraw special reserves.
Article 8 A bank shall establish a prudent loan loss reserve system according to the loan risk classification. (1) Banks should establish a loan risk identification system, classify loans regularly according to the requirements of loan risk classification, identify loan risks in time, and evaluate the internal losses of loans. (2) Banks should establish a loan loss reserve evaluation system, regularly evaluate the adequacy of loan loss reserve on the basis of loan classification, and timely make provision for loan loss, so as to adapt to the internal loss evaluation results of loans, accurately calculate operating results, and enhance the ability to resist risks. (3) Banks should establish a loan loss write-off system to write off loss loans or loan losses in a timely manner. A strict examination and approval system should be established for the write-off of loan losses, and banks should continue to retain the right of recourse for loans with written-off losses.
Article 9 The loan loss reserve must be fully drawn according to the risk degree of the loan. If the loss reserve is insufficient, after-tax profit distribution shall not be carried out.
Article 10 The financial accounting and tax treatment of loan loss reserve shall be carried out in accordance with the relevant provisions of the state.
Article 11 Banks shall, in accordance with the requirements of the People's Bank of China, regularly submit the five-level classification of loan quality and the write-off of loan losses mentioned in the loan loss preparation.
Article 12 The write-off data mentioned in the bank loss reserve shall be disclosed to the public in accordance with relevant regulations.
Article 13 The People's Bank of China shall, through on-site inspection and off-site inspection, supervise the classification of bank loan risks and the extraction of corresponding loss reserves, and evaluate the adequacy of loan loss reserves.
Article 14 These Guidelines are applicable to all kinds of financial institutions established in People's Republic of China (PRC) with the approval of the People's Bank of China, including Chinese-funded commercial banks, Sino-foreign joint venture banks, wholly foreign-owned banks and branches of foreign banks. Policy banks can refer to these guidelines, and the specific measures will be implemented after the approval of the Ministry of Finance.
Fifteenth these guidelines shall come into force as of June 6, 2002.