Managing Credit Risk
Credit risk arises from the potential that an individual is either unwilling to perform on an obligation or its ability to perform such obligation is impaired resulting in economic loss to the bank.
*Boards and Senior Management Oversight’s:
The senior management of the bank should develop the credit policies. • Detailed and formal credit evaluation process. • Credit approval authority at different hierarchy levels including authority for approving exceptions.
*Boards and Senior Management Oversight’s:
• Risk identification, measurement, monitoring and control. • Risk a
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