Measures for the Administration of Debt Provisioning by Financial Institutions
金融企业呆账准备提取管理办法
Compared with previous rules regarding debt provisioning, the Measures introduces greater flexibility in making the minimum 1% of year-end balance of risk assets a guideline rather than a mandatory requirement. It changes the nature of general provisions allocated from one of pre-tax deduction to a post-tax distribution of profit. The Measures allows financial institutions to set aside two types of loan loss provisions: specific provisions and special provisions. Further requirements for other categories of the asset impairment provisions, for instance bad debt provisions and provisions for impaired long-term investments, are also in place.
(Issued by the Ministry of Finance on May 25 2005 and effective as of July 1 2005.)
(财政部于二零零五年五月二十五日发布,自二零零五年七月一日起施行。)
Cai Jin [2005] No.49
PART ONE: GENERAL PROVISIONS
财金 [2005] 49号
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