Credit risk adjustments (impairment and impairment charges)
The Group’s strategy and policy applicable to impairment and recognizing impairment charges has been presented in the Yearly Financial Report, section 8 “Credit risk” in the part 8 devoted to financial risk management. It contains a detailed description of:
- Organization of the process to identify and measure impairment of credit exposures in order to determine adjustments for specific and general credit risk
- Analysis of individual impairment of credit receivables
- Collective analysis of a credit portfolio
At the same time, chapter VII.3 “Credit risk” of the Management Board Report on the Activity of the Bank/Group presents a general assessment of the credit risk level and assessment of changes in this respect observed during 2016 year, along with key asset quality indicators. It also presents an assessment of concentration levels in the credit portfolio, broken down into product types and industries.
The Group does not present information on impaired and past-due exposures broken down by significant geographical areas, due to immaterial exposures to counterparties having site in countries other than Poland. (Art. 442.h)
The agreed changes in the impairment and impairment charges are presented in the Notes (18.g) to the Yearly Financial Report. (Art. 442.i)