Under the new system (2000 regime) in addition to specific and general provision, statistical provision was added which was the difference between the latent risk (risk parameter dependent upon the credit growth) and the specific provision. The statistical provision was charged quarterly. This implied that statistical provisions for a given period could be positive or negative, depending on credit growth and contemporary bad loans.
When statistical provisions accumulate they generate a fund called statistical provision fund. The fund had an upper and lower limit. After the introduction of the statistical provision, the upswing of the economic cycle turned out to be much stronger and longer than anticipated.