Page 108 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
A a o nts are in tho sands o hana edis n ess otherwise stated Financia ris anage ent contin ed
redit ris anage ent contin ed
E pected credit oss eas re ent contin ed
Significant increase in credit ris S R contin ed
a itative criteria contin ed
• I the orrower is on the atchlist and or the instrument meets one or more o the ollowin
criteria:
• Si nificant increase in credit spread
• Si nificant adverse chan es in usiness, financial and or economic conditions in which the
borrower operates
• Actual or expected or earance or restructurin
• Actual or expected si nificant adverse chan e in operatin results o the orrower
• Si nificant chan e in collateral value secured acilities only which is expected to increase ris o
de ault
• Early si ns o cash ow li uidity pro lems such as delay in servicin o trade creditors loans he
assessment o SICR incorporates orward loo in in ormation and is per ormed on a uarterly asis at a port olio level. he criteria used to identi y SICR are monitored and reviewed periodically or appropriateness.
Bac stop
A ac stop is applied and the financial instrument considered to have experienced a si nificant increase in credit ris i the orrower is more than 30 days past due on its contractual payments.
ow redit Ris E e ption
he Group does not use the low credit ris exemption or any financial instruments.
Definition o de a t and credit i paired assets
he Group defines a financial instrument as in de ault, which is ully ali ned with the definition o credit impaired, when it meets one or more o the ollowin criteria
Quantitative criteria
he orrower is more than 90 days past due on its contractual payments .
a itative criteria
he orrower meets unli eliness to pay criteria, which indicates the orrower is in si nificant financial difficulty. hese are instances where
• he orrower is in lon term or earance
• The borrower is deceased
• he orrower is insolvent
• he orrower is in reach o financial covenant s
• An active mar et or that financial asset has disappeared ecause o financial difficulties
• Concessions have een made y the lender relatin to the orrower s financial difficulty
• It is ecomin pro a le that the orrower will enter an ruptcy
• inancial assets are purchased or ori inated at a deep discount that re ects the incurred credit losses.
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