Lending

14 Pages 3460 Words

žY Training & Development of Staff
It is the combination of these four factors when taken together that gives an effective means of minimising loan losses to the bank.
Section I ¡V Credit Policy
The Credit Policy of a financial institution plays a critical role in terms of the codifying of the fundamental parameters within which the institution conducts its lending business. The Credit Policy of a given bank is generally focused in both broad and narrow terms. This is done by having a General Credit Policy for the bank as a whole (which contains a broad focus) as well as having what is sometimes referred to as a Business Unit Credit Policy (which contains a narrower focus directed at the market of that particular Business Unit (for example the Retail Banking Division of the Bank.
In some instances a Segmental Credit Policy may also be adopted, for example for the segment of the Retail Banking market containing Small Business Lending. In this scenario a bank may refine its Business Unit Credit Policy to focus on the Small Business segme...