Slide 1
Slide 2
Presentation Objectives
Slide 4
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What is it
Slide 7
Genesis – Importance of Policy
The Need for Policy Making
Ingredients of a good loan policy
Slide 11
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Loan policy formulation in a bank
Slide 14
Slide 15
Typical loan policy
Process
Slide 18
Determines Credit Culture of Bank
A Delicate Balancing Act
Healthy Balance
Regulatory and Statutory issues in Loan Policy formulation
Regulatory requirements
Credit Policy and Regulatory guidelines
Policy -interspersed with Do’s and Don’ts
Studies prior to formulating a policy
Sector Watch and Industry Studies
Industry Issues in Policy
Industry Analysis – A key tool
A Closer Look at Industry Analysis
Slide 31
Industry Analysis in Actual Practice
Business prospecting through policy
Core competencies- influence on policy
Fixation of internal prudential ceiling norms
Internal Prudential Limits – A Potent Instrument of Credit Risk Management- through Loan policy
Prudential exposure ceilings
Some issues in limits
Setting Prudential Limits – Specific to Each Bank
Credit Rating & Loan policy
Credit Rating
Credit rating & Loan Policy
Schematic Lending Policy
Schematic Lending- Loan Policy
Risk Vs Return- Retail Lending
Taking over Loan Accounts
Policy of take over
Implementation Issues
Challenge
Policy Deviations –French Windows?
In the Final Analysis
Credit Policy As a Risk Management Tool
Policy -Widen Knowledge Base
Loan Policy risk, growth, profits
Slide 55