Credit risk management system should include

A) the policy and provisions for credit risk management, which should be considered and approved in accordance with the principles of corporate governance. These policies and regulations are subject to periodic review, and b) the provisions of the loan, taking into account both balance sheet and off-balance-sheet activities of the bank, namely: - They regulate the types and terms of loans and other transactions that carry credit risk - consider the nature of markets and industries, which will be granted loans - provides for consideration of commitments to extend credit, a variety of information, particularly on the financial status of the borrower, the nature and value of collateral, the borrower's character and his ability to repay the loan under the agreement, the guarantor of financial responsibility, etc. - adequately take into account concentration of credit risk and the associated potential risks; - Other matters relating to lending, in particular the procedure and the procedure for determining the interest rate on the loan and deposit required - Regulations on exposure limits for single counterparty, a group of related counterparties, by industry and sector , by geographic region or other credit transactions, which can be viewed in the aggregate (exposures), these provisions should take into account all the components of credit risk, as the balance sheet and off-balance sheet faced institution, as well as the possible influence of other risk categories - clearly defined and elaborate system of decision-making regarding the adoption of the operations that carry credit risk Category: Risk in the Banking | Tags: credit risk management