Circ Jan 20, 1995 Monitoring Foreign Exchange Positions

CIRCULAR DATED JANUARY 20, 1995

ON THE MONITORING OF BANKS’ AND FINANCIAL INSTITUTIONS OPEN FOREIGN EXCHANGE POSITIONS

No: B 795-001 RGT

1- Foreign exchange positions shall be determined from the elements of the assets, liabilities and off balance sheet items denominated in foreign exchange. They shall include in particular accrued interest outstanding whether receivable or payable.

2- At the close of each monthly accounting period the amounts denominated in foreign currency shall be expressed in riel using the official rate at that date.

3- A bank shall send a " Calculation of foreign Exchange Positions" return to the National Bank in the same frequency and at the same time as its financial statement. Whenever a bank changes the foreign exchange system referred to in 1 of the Regulation B 795-001 RGT in any way, it shall inform the National Bank of the changes when sending the return mentioned in this Article.

4- A bank shall send a " Calculation of Net Worth " return according to the example in Annex II, to the National Bank in the same frequency and at the same time as its financial statement. A bank shall adopt an accounting system that readily permits the identification of each category.

5- Provisions for bad and doubtful debts shall be constituted in the same currency as the debt.

6- In the case of any excess over the limits fixed by regulation B 795-001 RGT on the monitoring of exchange positions a bank shall state:

the origin of each excess
the measures taken to remedy the situation.

Such written information shall be attached to the calculation of the foreign exchange position when sending the return to the National Bank.

The National Bank will decide upon its reaction to any breach in accordance with the gravity thereof and with regard to the prevailing legal remedies (Article 17 of the law dated August 11, 1992 and Article 25 of the Anukret dated November 16, 1992).

Chea Sok

King Kab

Bank Supervision & Examination Department

UNPAID AND DOUBTFUL DEBTS

Amounts in million Riel

Name of the Bank...........................

Date of Settlement..........................

	Gross debts amount			Outstanding provisions				Net debts amount
	Currencies converted	Riel	Total	Currencies converted	Riel	Total	Currencies converted		Riel	Total
	Into Riel		in Riel	Into Riel		in Riel	Into Riel			in Riel
1- Customers debts(non-Bank)
- Total unpaid debts
- Total doubtful debts (1) (Balance sheet)
- Total doubtful commitments and contingent liabilities(1)
2- Interbank debts (1) " Unpaid and Doubtful "

3- Other debts (1)

Total = (1+2+3)

(1) Detailed annex carried forward Checked and Signed by authorized executive

ANNEX TO UNPAID AND DOUBTFUL DEBTS STATEMENT

Name of Bank...............................

Date of Settlement........................ Amounts in million Riel

	Gross debts amount			Outstanding provisions			Comments
Subject	Currencies converted	Riel	Total	Currencies converted	Riel	Total	(origin, guarantees,
	Into Riel		( In Riel )	Into Riel		( In Riel )	reimbursement capacity...)
I.B. Doubtful customers debts (Balance sheet)
B.1. Detail of all kinds of credits and advances to a customer totaling 20 million riel or more Customer’s data
Name, address, nationality, provision
-
-
-
Sub total of above credits and advances
B.2.Sum of credits and advances to totaling less than 20 million riel Customers number :
Total of doubtful customers debts(balance sheet) to be carried forward on the main statements (= B,1+B,2)
I.C. Detail of doubtful commitments and contingent liabilities
-
-
-
Total of doubtful commitments and contingent liabilities to be carried forward on the main statement (Sum of C )
II- Detail of unpaid and doubtful Interbank debts
-
-
-
Total of unpaid and doubtful interbank debts to be carried forward on the main statement
III- Detail of other unpaid and doubtful debts ( equities, bonds......)

Name Bank :.....................

Date :................................. Annex

amounts in millions of riels

THE CALCULATION of NET WORTH

(regulatory capital )

Capital or endowment					+
Premia related to capital and / or reserves( other than revaluation reserves )					+
Provisions for general banking risks approved by the National Bank					+
Retained earnings for prior years					+
Audited after ( tax profit) latest financial year					+
Subordinate loans					+
Other items approved by the National Bank					+ ------
		SUB-TOTAL A
LESS
Re. Shareholders, Directors, managers of which :					_
unpaid portion of capital			.............
advances and loans			.............
instruments bearing the signature of a shareholder or manager			.............
					_
Treasury stock ( holdings of own shares)					_
Accumulated loss					_
Losses incurred ( year to date / unaudited )					_
Intangible assets including formation expenses					_
Dividends payable( for doubtful debts and securities )					_
	SUB-TOTAL B

BASE NET WORTH				A-B = TOTAL C
Revaluation surplus approve by the National Bank					+
Subordinated debt approved by the National Bank					+
Other items approved by the National Bank					+
ADDITIONAL NET WORTH	SUB-TOTAL D				+
LESS
Assets representing the counterpart of net worth of another bank or financial institution					_
Other items					_
	SUB-TOTAL E				_
MISCELLANEOUS DEDUCTIONS
TOTAL NET WORTH	C+D-E = TOTAL F				+

Accountant Director

Calculation of foreign exchange positions

Amounts in million of riels

---------------

	ELEMENTS AFTER DEDUCTION OF THE AFFECTED PROVISION				NET POSITION FOREIGN CURRENCY		NET WORTH at period ended
	Assets +	Liabilities and Capital -	Off balance sheet +	off balance sheet -	Long +	Short -	Net Position Net Worth	Maximum	Excess (1)
USD							%	5%	%
THB							%	5%	%
FRF							%	5%	%
GBP							-	-	-
DEM							-	-	-
							-	-	-
Other significant currencies (precised)							-
HKD							%
-
-
-
Other insignificant currencies
. long positions
. short positions
TOTAL	(2)	(3)	(4)	(5)
POSITION IN KHR
	SUM OF SHORT POSITIONS (COMPRISED KHR ) = GLOBAL POSITION						%	15%	%

(1) Where there is an excess, the bank shall submit a written explanation of the origin of each excess and the measures taken to remedy the situation.

(2) Total equals to assets in currencies as per the balance sheet

(3) Total equals to liabilities and capital in currencies as per the balance sheet

(4) Receivable currencies ( commitments)

(5) Payable currencies ( commitments )

Accountant Direct