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  • RM-2.3 RM-2.3 Credit Policy

    • RM-2.3.1

      Licensees must have a properly documented credit framework. The framework must include a board approved policy which is supported by appropriate procedures and practices designed to bring professional discipline to the credit granting activities and ensure that credit facilities are granted based on clear and relevant criteria.

      July 2014

    • RM-2.3.2

      It is prudent to review the credit policy regularly to ensure that once it is established, it remains flexible enough to be current and continues to accomplish its original purpose taking into consideration market developments.

      July 2014

    • RM-2.3.3

      A sound credit policy should consider which types of credit products and borrowers the licensee is prepared to accept and the underwriting standards the licensee will utilise.

      July 2014

    • RM-2.3.4

      A licensee's credit policy should address all credit matters of significance including:

      (a) Objectives of credit monitoring;
      (b) Organisation and reporting structure of the credit department;
      (c) The target economic sectors and products;
      (d) Establishment of a credit limit framework;
      (e) Guidelines for assessment of concentration;
      (f) Authorisation procedures for the advancement of credit;
      (g) Effective oversight and review of all credit facilities;
      (h) Establishment of desirable pricing levels and criteria; and
      (i) Problem credit identification, classification and administration.
      July 2014