Guidelines on the Differential Premium Systems - PIDM

More documents

Recommendations

Info

Ref No DI/GL2-A1/2011(DPS) Issued on 4 March 2011TITLE<strong>Guidelines</strong> on The Differential Premium SystemsTotal asset growth ratioTotal asset growth ratio is measured as the arithmetic average of the sum of totalassets and credit equivalent of off-balance sheet items from year two to year fourdivided by the arithmetic average of the sum of total assets and credit equivalent ofoff-balance sheet items from year one to year three.The results of a member’s risk-weighted assets to total assets ratio and total assetgrowth ratio shall be scored as per Table 11:Table 11: Score Range for Asset Growth CriteriaAsset Growth CriteriaRange of ResultsRisk-weighted Assets to Total AssetsRatioRisk-weighted Assets to Total AssetsRatio < 70%Risk-weighted Assets to Total AssetsRatio < 70%Risk-weighted Assets to Total AssetsRatio ≥ 70%Risk-weighted Assets to Total AssetsRatio ≥ 70%Total Asset Growth RatioTotal Asset Growth Ratio
Ref No DI/GL2-A1/2011(DPS) Issued on 4 March 2011TITLE<strong>Guidelines</strong> on The Differential Premium Systems(i)Supervisory RatingFor Supervisory rating, a member shall be assigned scores as presented in the Table12:Table 12: Score Range for Supervisory Rating CriteriaSupervisory RatingRange of ResultsScoreSupervisory Rating of 1 (Low) or equivalent 35Supervisory Rating of 2 (Moderate) or equivalent 28Supervisory Rating of 3 (Above Average) or equivalent 14Supervisory Rating of 4 (High) or equivalent 0(j)Other InformationThe applicable score shall be determined by PIDM based on information relating tothe safety, soundness, financial condition or viability of a member.This information may include:(a)(b)(c)(d)(e)(f)Information received from supervisors about a member or its relatedcompanies on non-compliance to BNM regulations or guidelines andinadequate internal controls in its operations resulting in the issuance ofletter of undertaking (“LOU”) and board resolution from a member;A member’s non-compliance to PIDM regulations, guidelines and any otherregulatory requirements;A member’s action plans to address deficiencies in performance and amember’s performance in relation to LOU and board resolution;Rating agencies’ review and ratings;Whether a member is receiving financial assistance from PIDM or BNM; andAny other relevant information that may come to PIDM’s attention.Page 14
Page 1 and 2: GUIDELINES ONTHE DIFFERENTIAL PREMI
Page 3 and 4: Ref No DI/GL2-A1/2011(DPS) Issued o
Page 15: Ref No DI/GL2-A1/2011(DPS) Issued o
Page 45: Ref No DI/GL2-A1/2011(DPS) Issued o

Guidelines on the Differential Premium Systems - PIDM

Create successful ePaper yourself

Delete template?

Save as template?