Bank’s credit starts with portfolio planning and target market identification. Within identified target markets, credits are initiated by relationship managers. The proposed credits are subjected to review an approval by applicable credit approval authorities. Further to appropriate approval, loans are disbursed to beneficiaries. Management of loans is undertaken by both relationship management teams and credit risk management group.
If a preliminary analysis of a loan request by the account manager indicates that it merit further scrutiny, it is then analyze in greater detail by the account manager, with further detailed review by credit risk management. The concurrence of credit risk management must be obtained for any credit extension. If the loan application passes the detailed analysis it is then submitted to the appropriate approval authority for the size of facilities.
The standard credit evaluation process is based both on quantitative figures from the financial statements and on an array of qualitative factors. Factual information on the borrower is collected as well as pertinent macroeconomic data, such as an outlook for relevant sector, etc. These subjective factors are assessed by the analyst and all individuals involved in the credit approval process, relying not only on quantitative factors but also on extension knowledge of the company in question and its management.
