38. Credit risk policies and procedures should specify: a. policies and procedures and rules for …

Credit risk policies and procedures should specify:

• a. policies and procedures and rules for the approval of credit granting and decision-making, including appropriate authorisation levels set in accordance with the credit risk appetite and limits;
• b. credit-granting criteria, taking into account the items referred to in Annex 1;
• c. requirements for the handling of information and data needed for the creditworthiness assessment, as set out in Section 5.1;
• d. requirements for the creditworthiness assessment, including a sensitivity analysis, as referred to in Section 5.2;
• e. requirements for exposure aggregation and credit risk limits and the management of credit risk concentrations;
• f. requirements and procedures regarding the acceptance and use of collateral and credit risk mitigation measures, to determine their effectiveness in minimising the inherent risk of a credit facility — such requirements and procedures should be asset class-specific and product type-specific and should duly consider the type, size and complexity of the credit facilities being granted;
• g. conditions for the application of automated decision-making in the credit-granting process, including identifying products, segments and limits for which automated decision-making is allowed;
• h. a risk-based approach, addressing possible deviations from standard credit policies and procedures and credit-granting criteria, including:
• i. conditions defining the approval process for deviations and exceptions and the specific documentation requirements, including the audit trail;
• ii. criteria for rejections and criteria for the escalation of deviations/exceptions to higher levels of the decision-making authority (including overrides, overrules, exposures possibly approved as an exception to general lending standards and other non-standard business under a special process with different approval authorities);
• iii. requirements for the monitoring of circumstances and conditions for an exceptional credit-granting decision, including requirements for their review by the relevant functions during the regular review of the application and compliance with policies and limits;
• i. requirements relating to what is to be documented and recorded as part of the credit-granting process, including for sampling and audit purposes — this should include, at a minimum, the requirements for the completion of credit applications, the qualitative and quantitative rationale/analysis, and all supportive documentation that served as a basis for approving or declining the credit facility;
• j. requirements for monitoring credit-granting activities — the internal control framework should ensure that it covers all phases after the granting of credit;
• k. where applicable, the criteria as set out in Sections 4.3.2, 4.3.3, 4.3.4, 4.3.5 and 4.3.6;
• l. criteria as set out in Section 4.3.1 and 4.3.7.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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