Bank's credit policy includes a set of basic tactical and strategic tasks for which staff should be based in the implementation of core banking operations.Each credit institution independently develop such a policy, depending on the performance objectives as well as regional, political and social factors.
The first is to find out what is needed and credit policy of the bank.It is aimed at improving the organizational work to achieve positive business results, improve financial performance and so on.Of course, the commercial banks as the main reference point is selected maximizing profits and increasing the confidence of the citizens, while the Central Bank's credit policy is aimed at maintaining and developing all the elements of the banking system, to regulate the exchange rate and the inflation rate.
Credit Commercial type tend, on the one hand, to satisfy all the demands and wishes of the client, and on the other - to provide increasing profitability of the operations of the credit.As we know, the more profitable the deal, the higher the risk of losses on the amounts lent.Bank's credit policy establishes a balance between these interrelated categories, that is determined by the maximum level of risk for specific transactions in which there is not the threat of bankruptcy.
Following the development of the main provisions of the policy document is given for the approval of all members of the Board of Directors.Accordingly, the responsibility lies on the decisions taken at this management body.Moreover, members of the Board are also obliged to monitor the implementation of the approved provisions in practice.
In today's world, many large banks have come to the conclusion that the introduction of common goals and objectives, as well as the development of common methods of achieving them.For this purpose, it prepared a special document called "Memorandum of credit policy."It identifies the global objectives, set the maximum and minimum amount of borrowed funds and designated certain types of loans that are considered the most risky, and therefore, their extradition is not recommended.
Bank's credit policy contains estimates of key financial indicators that characterize the success of the organization over the period.In this regard, to consider the amount of own funds, the presence of secondary reserves, such as term deposit accounts, as well as the economic situation of the country at the moment.
most significant in our region is considered the monetary policy of the Bank of Russia, since it is based on not only the economy, but also the principles of credit institutions commercial type.This document contains the basic provisions, which are based on other credit organizations in developing their own policies.For example, the Central Bank sets the amount of required reserves, which directly affects the level of interest rates on all types of loans.
