The classification criteria recommended by the IAC was based on an intelligible differentia (quantum, materiality, as well as age as of the NPA) and had close nexus with the underlying object of the IBC and the Ordinance. 10. It must be emphasised, however, that being referred for insolvency process under IBC does not necessarily mean that the company is being liquidated.
In addition, our Supervision and Examination Sector and the newly-created Office of Systemic Risk Management will engage the banks in discussions to demystify and clarify the concepts behind ABIF and AFIF as you operate in an integrated and more globally-active ASEAN market.