Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.

NOTES TO THE FINANCIAL STATEMENTS
32. FINANCIAL RISK MANAGEMENT (CONTINUED)
32.1 Credit risk (continued)
e) Loans and advances (continued)
** The value of collateral is based on the valuation assessed by property valuation agents or performed
internally by the Bank during loan approval process or upon loan renewal. As the current property price is
volatile, the fair value of collateral assessed when the loan was approved might be different from current
value. Under the Central Bank's regulation, the value of collateral is not taken into account when
determining the impairment of loans and advances to customers.
iii. Loans and advances individually impaired
In accordance with Prakas No. B7-00-51 dated 17 February 2000 on the classification and provisioning for
bad and doubtful debts, loans and advances past due more than 90 days are considered impaired and a
minimum level of specific provision for impairment is made depending on the classification concerned,
unless other information is available to indicate the contrary.
2008 2007 2008 2007
US$ US$ Riel Million Riel Million
(Unaudited) (Unaudited)
Past due up to 90 days 7,855,986 - 32,060 -
Past due 90-180 days 28,125,338 6,824,523 114,780 27,319
Past due 180-360 days 6,836,133 6,393,600 27,898 25,594
Past due 360 days or more 15,059,864 10,575,633 61,459 42,333
Total 57,877,321 23,793,756 236,197 95,246
Value of collateral ** 86,391,842 35,411,130 352,565 44,049
iv. Loans and advances renegotiated
Restructuring activities include extended payment arrangements, modification and deferral of payments.
Following restructuring, the loan is still kept in its current classification unless there is strong evidence of
improvement in the customer's financial condition.
The Bank restructured loans and advances amounting to US$27,300,000 during the year and these loans
were classified as non-performing loans at 31 December 2008.
f) Repossessed collaterals
During the year ended 31 December 2008, the Bank obtained assets by taking possession of collateral held
as security amounting to US$2,100,000 (2007: US$12,866,341).
Repossessed properties have to be sold within one year as required by the Central Bank. Repossessed
property is classified in the balance sheet as foreclosed properties.
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Annual Report 2008