You would have noted that while it is mandatory to report defaults on a weekly basis, the classification of loans as nonperforming assets will still be on the 90-day-past-due criterion. As such, the idea is to nudge lenders and borrowers to take timely corrective action so that the deterioration in the asset quality is avoided to the extent possible.
Credit risk management The evolution of a portfolio approach to credit risk management has followed a path similar to that of asset-liability management. It began in the late 1980s, in the aftermath of serious credit-quality deterioration.