Mechanism for implementing the policy of this type is

Providing loans to riskier categories of borrowers, increasing the term of the loan and their size, lower cost of credit to the lowest possible level, giving borrowers the possibility of extension of credit. 5. Development of the basic parameters of the organization of the credit process and determine the degree of responsibility of credit managers at various levels: the definition of authority in granting loans, which belongs to each employee credit and the credit committee; duty on transfer of rights and provision of information in the credit department, practice audits, evaluations and decision-making on loan applications customers, the formation of standards for assessing the creditworthiness of borrowers and differentiation of credit conditions, the required documentation attached to each loan application and documentation is stored in the credit business (financial statements, contracts and collateral warranties, etc.), the rights of employees of the bank with a detailed definition of who is responsible for storing and checking credit files, the basic rules of adoption, implementation and evaluation of collateral, a description of policies and practices to establish interest rates and commissions on loans, credit terms pogashannya, a description of the quality standards that apply to all loans, a description practice of identifying, analyzing and solving situations and problem loans. 6. The formation mechanism of monitoring the implementation of monetary policy. 7. Overall assessment of the effectiveness of monetary policy developed. In the development of credit policy banks determine the priorities in the formation of the loan portfolio, considering its diversification in terms of determining the optimal monetary policy. Category: Management Operations Commercial Bank | Tags: credit