Credit Monitoring

Muslim Commercial Bank

Credit Monitoring
process of periodically reviewing your credit
reports for accuracy
changes that could be indicative of fraudulent
activity

Goals and Objectives of

Monitoring:
The main objectives of credit monitoring are following.
For checking the utilization of fund which are syndicated by bank.
To see the terms and condition as stipulated at the time of sanction of funds.
For checking the implementation of project in time to avoid time and cost over-runs.
For evaluating the performance in term of production, sales, profit etc.
For checking the management effectiveness and staff motivation.
For assessment of industrial climate and general and external environmental factors
like Govt. policies, availability position of inputs like power, raw material etc.
To detect signals and symptoms of sickness for corrective action.
To check the accumulation of statutory dues, creditor, old stocks of finished goods
etc.

Muslim Commercial Bank

Muslim Commercial Bank

4th largest bank of Pakistan with A1+ rating

Assets based of USD 7 billion
1190 Branches network all over the Pakistan
22 Islamic branches all over the World
First Privatize bank of Pakistan
Business strategies
Information technology

Stages of Credit Monitoring

There are two stages of credit monitoring
Pre-operational stage
Post operational stage

Pre-operational stage of MCB

A

MCB
branch

branch

Legal
advisor
y
departm
ent

Credit
Risk
Control
division

branch

branch

Credit
review
departm
ent

Remote commercial branch

Loan application Form
Basic borrower Fact sheet
Credit information bereaue

Legal advisory Department

Review the documents

Check the previous performance
Monitor the legal requirements
Send back to remote branch

Credit Review department

Review all the documents
Loan Limits (MCB providing 50% against
collateral)
Payback tenure
Approval sheet
Internal conditions
Send back to remote branch

Credit Risk Control Department

Review the borrower performance in depth

Check borrower over due and right off
Facility advisory letter
Formal credit book
IB bonds 12,25,26,29
Send back to remote branch

Remote branch

Disbursement authorization certificates

Approved all the documents by the borrower
Check to CRC division
Issuance loan after approval

Factors consider under loan

issuance

Time over run

Cost over run
Roll back
PERT and CPM techniques
Clean up period
Vender management unit

MCB Regulators

Assets evaluation
Vender management unit
Clean up period
MUQADUM
Regional and local reviews committee

Post operational stage

Monitoring the credit
Control the risk factor
Inspection and audit reports

SBP requirements

Personal details timely

Stock securities (through MUQADAM )
Insurance
Payback installment time
Authority visits

MCB other tools

Recovery notifications
Warning Calls
Authority Visit
Recovery Agencies
Legal Action

Credit Facilities of MCB

Bridge financing
Overdraft
Cash finance
Letter of credit
Bank grantees
Demand finance