Guidelines on the Differential Premium Systems - PIDM

Ref No DI/GL2-A1/2011(DPS) Issued on 4 March 2011TITLE<strong>Guidelines</strong> on The Differential Premium Systems5.2. TOTAL ASSETS GROWTH RATIO (%)Formula:Assets Year 2 + Assets Year 3 + Assets Year 43Assets Year 1 + Assets Year 2 + Assets Year 33- 1 X 100Assets Year 1: Refers to total assets and credit equivalent of off-balance sheet items as of 31December of the fourth year preceding the assessment year.Assets Year 2: Refers to total assets and credit equivalent of off-balance sheet items as of 31December of the third year preceding the assessment year.Assets Year 3: Refers to total assets and credit equivalent of off-balance sheet items as of 31December of the second year preceding the assessment year.Assets Year 4: Refers to total assets and credit equivalent of off-balance sheet items as of 31December of the first year preceding the assessment year.Source of information:Data RequirementA member withDecember FinancialYear EndA member with Non-December FinancialYear EndRemarksTotal AssetsCredit Equivalent of Off-Balance Sheet ItemsAnnual financialstatementsInterim financialstatements /management accountsvalidated by theexternal auditor-Refers to creditequivalent amountof commitmentsand contingenciesScoring Grid:Risk-weighted Assets to Total Assets RatioTotal Asset Growth RatioScoreRisk-weighted Assets to Total Assets Ratio < 70% Total Asset Growth Ratio < 20% 5Risk-weighted Assets to Total Assets Ratio < 70% Total Asset Growth Ratio ≥ 20% 3Risk-weighted Assets to Total Assets Ratio ≥ 70% Total Asset Growth Ratio < 20% 1Risk-weighted Assets to Total Assets Ratio ≥ 70% Total Asset Growth Ratio ≥ 20% 0Page 41