CREDIT MANAGEMENT

POLICY OF AGRANI BANK

• Agrani Bank Limited follow Bangladesh Bank credit management guidelines
but it also has it’s own credit management policy to,Some of them arw given
bellow
• Policy 1: The board has responsibility for approving and periodically reviewing
the credit risk strategy and significant credit risk policies of the bank.
• Policy 2: Senior management has responsibility for implementing the credit
risk strategy approved by the board and for developing policies and
procedures for identifying, measuring, monitoring and controlling credit risk.
• Policy 3: Agrani Bank Limited has to identify and manage credit risk inherent
in all products and activities. Bank will ensure that the risks of products and
activities new to them are subject to adequate procedures and controls
before being introduced or undertaken, and approved in advance by the
Board of Directors (BOD) or its appropriate committee.
• Policy 4: Agrani Bank Limited will operate under sound, well defined credit
granting criteria. These criteria will include a thorough understanding of the
borrower or counter party, as well as the purpose and structure of the credit,
and its source of repayment.
• Policy 5: Agrani Bank Limited will establish overall credit limits at the level of individual
borrowers, and group of connected counter parties that aggregate different types of
exposures, both in the banking and trading book andon and off balance sheet.
• Policy 6: Agrani Bank Limited has a clearly established process in place for approving
new credits as well as the extension of existing credits.
• Policy 7: Agrani Bank Limited has in place a system for monitoring the overall
composition and quality of the credit portfolio.
• Policy 8: Agrani Bank Limited has a system in place for managing problem credits and
various other workout situations.