Компания CS

The Establishment of Allowances subsystem serves to automate the process of calculating and establishing obligatory allowances for the bank's transactions relating to the assets:

a) For the amount of principal receivables, the amount of loans and advances to individuals and companies;

b) For the amount of income accrued and overdue for more than 31 days, the amount of doubtful income (from loans and advances to individuals and companies, from overdue fees and commissions under contracts for settlement and cash services);

c) For the amount of principal receivables from interbank transactions (placed loans/deposits);

d) Allowances for the amounts of balances of nostro accounts.
The calculation of the required allowances is carried out automatically on the basis of:-

A class (credit rating) is assigned to a counterparty by the relevant unit of the bank based on a decision of Lending Committee. Risk factors with respect to principal receivables, liabilities, securities (collaterals) are calculated automatically in accordance with a loan category established in a transaction, a security (collateral) type.

Also, the level of servicing a debt under loan and a counterparty's class may be calculated automatically based on repayment schedules and transaction documents in accordance with the requirements of NBU's Resolution No. 279.

In calculating the amount of the requisite allowances for balances of nostro accounts and principal receivables from interbank transactions, a country risk factor, a credit rating of the bank's counterparty, a loan category established in the customer's card are taken into account

Based on the allowances established, the files of reporting to the NBU (11th and 30th files) are produced.

As is well known, however, the banking system of Ukraine is currently in a transition period - from the requirements of the effective Resolution No. 279 to the requirements of NBU's Resolution 481 and IFRS.
We analyze in detail all the forthcoming changes in this field and, currently, are ready to make requisite changes to Establishment of Allowances for Transactions Relating to Assets subsystem in the event of a new wording of Resolution No. 279.