Investor Presentaiton
Definition of 12-month and lifetime expected
credit losses
Lifetime expected credit losses
Expected credit losses that result from all possible default events over the
expected life of a financial instrument.
12-month expected credit losses
The portion of lifetime expected credit losses that result from
default events on a financial instrument that are possible
within the 12 months after the reporting date.
'Default'
Definition is not defined by the standard and there is a
90 days past due rebuttable presumption.
In
practice
Although 12-month horizon may be consistent with
regulatory capital requirements (e.g., Basel), the
computation of expected credit losses under SLFRS 9 will
differ from regulatory capital calculation.View entire presentation