Segmentation of lines of credit policy

Segmentation lines of credit policy on the basic forms and types of lending activities. As a holistic concept of monetary policy should be segmented in a certain way in the development of strategic objectives and mechanisms for their achievement in certain areas of the credit. This segmentation can identify specific priorities for the selection of clients, types of credit, credit related instruments, recognizing the differential terms and conditions of loan agreements. 7. Maintenance of the balance of individual lines of credit policy. This principle is the formation of monetary policy requires a clear consistency of its strategic goals and directions of individual credit performance over time, the regional context. 8. Provide highly effective monetary policy. The concept of high performance credit policy involves not only the possibility of achieving a high level of bank profits from its lending operations and lending activities in general, but also to ensure a sufficient level of financial security and reliability of this activity within the prescribed period. To ensure high efficiency of credit policies in the development process must be defined relative criteria of profitability and risk of individual credit transactions, forms and types of loans, lending activities of commercial banks as a whole. 9. Flexibility of credit policy. Internal and external conditions of the credit activities of commercial banks, predicted in the design of monetary policy, may have some deviations from their expected values. These deviations may provide in the future, an appropriate adjustment mechanisms to achieve strategic objectives. Therefore, the development of bank credit policy must be provided for the possible range of models appropriate management decisions, the use of new credit instruments, the introduction of new innovative technologies of the loan process, which would allow to take into account possible changes in external and internal conditions of the credit. Category: Management Operations Commercial Bank | Tags: credit