金融企业准备金计提管理办法（中英文对照）

risk classification of risk-taking assets, and approach adopted to assess risk of the risk-taking assets), variation of provisions balance per risk classification (including opening balance, provision created during the period, amount reversed during the period, amount written off during the period, and closing balance), and information relating to NPLs and NPL provision coverage.

Central Government-owned financial institutions should submit materials relating to creation of provisions to the Ministry of Treasury, regional branches or sub-branches of Central Government-owned financial institutions to local stationed supervisory office of the Ministry of Treasury, and regional financial institutions to local treasury department. In the event that creation and management of provisions of financial institutions are centralized in their head office, materials relating to creation of provisions should be submitted by their head office to local treasury department.

Article 13 The local stationed supervisory office of the Ministry of Treasury shall be responsible for supervising local branches or sub-branches of Central Government-owned financial institutions creating provisions, and should promptly prevent and correct cases which have failed to create provisions duly and accurately.

Chapter III – Accounting Process

Article 14 General provision created by financial institutions in accordance with this regulation should be deemed distribution of profits, and forms an integral part of owner’s equity. After the end of each year, financial institutions shall, in accordance with this regulation, put forward a plan for creating general provision for the fiscal year, which should be implemented after going through internal management procedures.

General provision can be employed to cover negative profits after going through internal management procedures and reporting to local treasury department for record filing, but should not be utilized to distribute dividends. For special reasons, financial institutions can transfer the general provision to undistributed profits after going through internal management procedures and reporting to local treasury department for record filing.

Article 15 Provision for impairment of assets made by financial institutions should be registered in profit and loss accounts of the accounting period. When quality of risk-taking assets improved, the related impairment provision should be reversed in accordance with the improved assets quality within the amount of existing impairment provision, and the reversed amount should be recognized as an increase in profit of the accounting period.

Article 16 After the approved losses of assets satisfying relative conditions has been written off, the related provision for impairment of assets should be offset. Interest receivable in balance sheet which has been approved to be written off, and simultaneously has already been recognized in profit and loss accounts, should be offset and deemed a reduction in interest income no matter whether its principal or the interest is overdue or not.

When assets loss has been written off but recovered afterwards, the related offset impairment provision should be reversed respectively. If the recovery amount exceeds that of principal, the surplus should be recognized as interest income. Simultaneously, the reversed provision for impairment should be recognized as an increase in profit of the accounting period.

Article 17 Provision for impairment of assets should be created in its original currency, and translated to base currency at exchange rates on date of financial statements to recognize.

Chapter IV – Supplementary Articles

Article 18 Financial institutions can lay down relative internal rules in accordance with this regulation and report to local treasury department for record filing.

Article 19 In the event that the ratio of general provision to outstanding balance of risk-taking assets as at the end of accounting period is not capable of coming up to 1.5% in one step, financial institution can be given a period, in principle, not exceeding 5 years, to meet the requirement.

Article 20 This regulation comes into effect from the 1st July 2012 and simultaneously, the Regulations on Provision for Bad Debts by Financial Institutions (Treasury Documentation Ref. [2005] 49) should be abolished.