Regulatory Alerts2023-11-07
Credit Risk Management
The Supervisor of Banks issues Credit Risk Management principles requiring banking corporations to establish robust credit strategies, frameworks, and policies approved by the board of directors. Senior management must implement these strategies by developing procedures to identify, measure, monitor, and control credit risks across all activities, including new products and related-party transactions. The directive mandates the use of internal rating systems, stress testing, independent assessments, and adequate capital reserves to ensure sound credit-granting criteria and effective management of troubled debts.
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