Indecent exposure: Credit Policy
- Topics:
- Commercial Lending
- Source:
- Incisive Media
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Overview: Financial institutions are stepping up their credit risk management policies and implementing new measures to control credit limits. The paper, Principles for the management of credit risk, places much emphasis on the responsibility of senior management to formulate, agree and implement a structured credit policy. Some of the main areas covered by the paper concern credit approval processes, credit administration processes and procedures and the application of controls on problem areas. The paper also contains recommendations on how a bank should define its overall credit risk management strategy, which forms the starting point for a credit policy.
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