|
CREDIT RISK MANAGEMENT
Credit committees of the Bank operate at the three levels: Big Credit Committee of the Head Bank, Small Credit Committee of Corporate Business and Small Credit Committee of Retail Business, Credit Commissions at affiliates, Credit Committees for Microcrediting.
As for the credit risk management, the Credit Committee's functions are:
to specify credit risk management policy and submit it for approval of the Board of the Bank
to define the level of the Bank credit risk tolerance by setting limitations, introducing procedures and regulations concerning individual operations and at portfolio level as well
to coordinate methods, procedures, regulations with respect to credit risk management
to make policy concerning formation of reserves for recovery of potential losses from active operations
to coordinate lending and investment activities of the Bank structural units in the sphere of credit risk management
to monitor lending and investment activities of the Bank and take management actions focused at harmonizing the said activities with the credit risk management policy
to assess assets quality and approve proposals regarding formation of reserves for recovery of potential losses from active operations
upon reconciliation with the Bank Finance Department, to submit proposals to the Board concerning writing-off of bad assets
to ensure consistency of the policies related to lending and investment activities with other Bank policies and Risk Management Concept within the Bank system.
|
|
The major goal of the Committee for Assets and Liabilities Management (CALM) is effective management of the Bank assets and liabilities and identifying the ratio of risk to profitability of the bank operations, which can provide for adequate capital profitability as may require the members, depositors and creditors.
CALM is responsible for defining, monitoring and implementation of the following bank assets and liabilities management policies:
distribution of the Bank capital against risks and support to adequate paying capacity with account of balance sheet, market and other risks
monitoring and management of the Bank assets and liabilities in accordance with short-, medium- and long-term business plans of the Bank
drafting policies and guidelines on liquidity risk management and the Bank funds; defining a procedure of anti-crisis management if a liquidity risk emerges (systemic crisis or near to crisis situation)
management of the Bank market risks, in particular, interest, currency and price risks
setting of limits for market risks and liquidity risk
control over Treasury operations
monitoring of results under the six above mentioned goals and carrying out management actions to harmonize the bank balance sheet structure and off-balance-sheet positions with the Bank strategic goals and long-term policy priorities.
CALM day-to-day activities are supported by the Risk Management Department, the Treasury and the Finance Department of the Bank. The Committee prepares proposals to competent bank management bodies concerning modification of bank products, tactics and strategy of the bank representation in the banking services market.
|
Printer friendly version
