1. List ten (10) elements that should be included in your institution's credit policy. 2. What are...

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Finance

1. List ten (10) elements that should be included inyour institution's credit policy.
2. What are the advantages of a credit institution having a writtenloan policy?
3. State the four (4) things an effective credit risk managementsystem should do.
5. Explain, in general terms, how to conduct a credit riskassessment.

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1 10 element that should be included in Institutions credit risk policy 1Based on studies of industries Business activities bank should identify those which are doing well and have encouraging outlookpotential for growth Such activities should should be placed under targetpreferred credit while others which are not doing well and have uncertain prospectdefault risk may be kept under a watch list wherein exposures are increased contained reduced 2Delegation of loan approving sanctioning powers of officials linking the same with risk rating of the borrower The level of loan sanctioning authority may increase as the risk rating worsens 3Linking Credit scoring and rating See Answer

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1. List ten (10) elements that should be included inyour institution's credit policy.2. What are the advantages of a credit institution having a writtenloan policy?3. State the four (4) things an effective credit risk managementsystem should do.5. Explain, in general terms, how to conduct a credit riskassessment.