KBank Subsidiaries and ASEAN Economic Strategy
K
KASIKORNTHAI
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
TFRS 9 Expected Credit Loss and Basel General Provision/ Specific Provision
■ The concept of General Provision (GP) and Specific Provision (SP) for Basel is not changed, but the amount of provision reserve
or expected credit loss that can be counted as GP and SP is changed along with new accounting standards under TFRS 9
Loan Classification and Reserve
CAR Basel III
Current
Reserve Requirement
Pass
1%
GP
Special Mention
2%
Sub-Standard
Doubtful
Doubtful of Loss
Buffer (Excess Reserve)
100%
GP
Capital Adequacy Ratio
(% CAR)
=
Tier 1 + Tier 2 (Subordinated Debt / GP)
Risk Weighted Assets
(Outstanding - SP) x % Risk Weight
2
TFRS 9 (Effective: January 1, 2020)
Stage 1 - Performing
PD x LGD x EAD
1 Year
3
ECL - Stage 1
GP
Stage 2 Under-performing
Lifetime
ECL - Stage 2
SP
(1) GP that can be counted in Tier 2 capital is provision reserve for
"Pass" loans and excess reserve, but limited up to 1.25% of credit risk
weighted assets (RWA)
Lifetime
Stage 3 - Non-performing
(2) GP ECL Stage 1 + Stage 2 (Limited up to 1.25% of RWA)
ECL - Stage 3
(3) SPECL Stage 3+ Stage 2 that is not GP
BOT Reserve Requirement = 1% Floor
บริการทุกระดับประทับใจ
K
KASIKORNTHAI
TFRS and IFRS Implementation*
2013
2014
2015
2016
2020
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
2024**
TAS 21: Effects of
Changes in Foreign
Exchange Rates
Translate 'Functional
Currency' to
'Presentation Currency'
TFRS 8: Operating
Segments
Disclose operating
results for each key
segment
TFRIC 13:
Customer Loyalty
Programmes
Deferred portion
of income for
reward credit
granted
TFRS 13: Fair
value
Measurement
➤Clear required
factors and
disclosure
about fair
valuation
TFRS 4: Insurance
Contracts
➤ Measure
insurance liability
based on cash
flow estimation
➤ Additional
disclosure
regarding risk
exposure
Note: TAS Thai Accounting Standard; TFRS = Thai Financial Reporting Standard; TFRIC = Thai Financial
Reporting Interpretations Committee
OCI Other Comprehensive Income
*Only financial and disclosure impact to Thai Banks
**Tentatively effective
TFRS 16 (Leases)
There is a single, on-balance
sheet accounting model that is
similar to current finance lease
accounting.
TFRS 9 (IAS 39), TFRS 7 & TAS
32: Financial Instruments
Thai banks have implemented a
new provisioning rule under IAS
39, since December 2006
➤ Unquoted equities at cost to be
faired value and not able to
realize capital gain/loss in profit
and loss if they are faired
valued through OCI
➤Interest revenue of lending
portfolio will be recognized per
effective interest rate
➤Investment in property fund,
REIT, infrastructure fund and
infrastructure trust established
in Thailand will be classified as
equity instrument. (Refer to
announcement from TFRC
dated 25 June 2020)
TFRS 17: Insurance
Contracts
➤Insurance revenue will
be based on margin,
not gross premium
received
➤ Expected day one loss
is immediately realized
while expected gain is
deferred over coverage
period
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