Credit Group Operations
Major Middle Eastern Bank
- A documented credit policy and procedures manual is in place. Policies are now consistent and protect the bank from previously uncovered risk.
- A loan review procedure allows the head office to confirm compliance with its policies by the branches.
- The newly established workout group allows the bank to negotiate with clients to repair potentially bad loans before problems become irreversible.
- The credit policy clearly delineates responsibility, thus reducing follow-up activity. Communication channels between head office and the field are streamlined.
- Credit MIS that supports the credit policy is now in place.
- Early warning system identifies and manages potentially bad customer credits.
- Credit group has an established management process.
Turnaround time on credit decisions has been shortened by 50%. The loan committee is spending more time on new and significant business opportunities and less on short-term renewals. The reengineered operation provides for growth in processing volumes of 20-30% while reducing staff by 30%.