In relation to PBI no. 14/15/PBI/2012, regarding Asset Quality Rating for Commercial Bank, Bank must apply collectability equalization for all debtor credit facilities following the worst collectability. To have your collectability on Current status, please always make all of your payment punctual.
Delay of payment obligations will impacted to:
- Collectability downgrade
- Bad credit history
- Influence the Bank to approve or to reject the credit application
- Penalty charges
Collectability is a status of credit quality rating based on assessment factors such as business prospect, debtor performance and payment ability (principal, interest and other charges), which is classified as follows:
- Collectability 1 = Current
- Collectability 2 = Special Mention
- Collectability 3 = Substandard
- Collectability 4 = Doubtful
- Collectability 5 = Loss
What is the meaning of Collectability Equalization?
Collectability Equalization is a process to do equalization of the credit quality rating (collectability) from all of the debtor credit facilities following the worst collectability.
Debtor A has 2 facilities in BDI i.e. KPR (mortgage) and Credit Card.
KPR facility: the obligation payment always punctual therefore collectability status is Current (collectability 1).
Credit Card facility: the obligation payment is delay therefore collectability fall into Special Mention (collectability 2).
Based on above data, BDI will make collectability equalization of KPR collectability following the Credit Card collectability, from collectability 1 into collectability 2, so the final collectability of debtor A become collectability 2.
Debtor B has 1 facility in BDI i.e. Credit Card and 1 facility for motorcycle financing in Adira Finance.
Danamon Credit Card facility: payment obligation always punctual therefore collectability status is Current (collectability 1).
Adira Motorcycle Financing facility: there was a delinquent payment therefore collectability become Substandard (collectability 3).
Based on the above data, BDI will make collectability equalization of Credit Card collectability following the Adira Finance collectability, from collectability 1 become collectability 3, so the final collectability Debtor B become collectability 3.
- Link PBI No. 14/15/PBI/2012 article 5, subsection 1, 2 and 3
- Link SEBI No. 15/28/DPNP dated 31 July 2013