Description of credit policy

Description of the credit policy is important and helps the bank to form a portfolio that will help him to achieve a number of purposes: to ensure profitability, control risk and compliance requirements of regulatory authorities. Although monetary policy description should be sufficiently flexible to take into account all changes in economic conditions and rules established by regulators, but to violate the provisions contained in the credit policy of the bank, only in exceptional cases. The actual composition of the loan portfolio to meet its credit policy. Otherwise would not ensure effective implementation of monetary policy. Thus, monetary policy creates the necessary prerequisites for efficient operation of the general staff of the bank, reducing errors and making irrational decisions. Category: Management Operations Commercial Bank