Impairment stage 3 is related to the objective evidence of impairment.
After at least one individual financial asset has been assigned to impairment stage 3, the solution supports the impairment of customers.
In a first step, a significance test is applied for those deals impaired in stage 3.
The significance test compares the total exposure of an individual deal with a configured threshold. If the total exposure exceeds the threshold, it will be classified as a significant deal. Otherwise, it will be classified as a non-significant deal. For details about the significance test please refer to Significance Test.
In both cases, the risk provision is calculated at individual deal level. The basis of calculation is the comparison of the Gross Carrying Amount (GCA) and the recoverable amount, but for
For further details about the treatment of specific provision and lump sum specific provision plrease refer to "Customer Impairment".