credit review

• The credit review focus on the assessment of two major credit aspects. The major credit

  standards to properly evaluate credit practices are as follows:

  • portfolio quality
  • process quality
• Portfolio Quality – This is principally evaluated using a quantitative assessment of the portfolio mix and past due rate
• Process Quality – Is an assessment of the procedures in the marketing and administration of accounts based on established credit policies and procedures.
• The process is also categorized into the following:

  • Target market
  • Credit initiation and analysis
  • Loan documentation and disbursement
  • Credit administration and documents management
  • Problem, recognition
• Target Market – The review determines if the account solicitation activities are systematically undertaken considering the prescribed target market
• Credit Initiation and Analysis – The review will focus on the quality of evaluation and analysis of credit risks that results in the extension of credit
• Loan Documentation and Disbursement – This involves the verification of the appropriateness, adequacy and completeness of loan documentation, as well as compliance to all pre-release conditions of loan and collateral documentary requirements. The review sees to it that all availments, renewals, extension and other credit-related transactions are properly approved
• Credit Administration and Documents Management – The review validates the effectiveness of the credit monitoring and supervision and support system
• Problem Recognition – The review assesses the ability to anticipate adverse factors affecting credit risk and detects potential problem accounts, as well as

  timely reporting of such events to the p roper authorities
• organization and staffing

  • Organization and deployment
  • Coaching and training
• Organization and Deployment – This aspect of the review establishes the appropriateness of the organizational set-up in terms of staff adequacy, work experience,

  delineation of functions, account assignment, among others
• Coaching and Training – The review determines the availability and effectiveness of training programs and other coaching tools in the delivery of functions
• On loan recovery, the review focuses on two major aspects, as follows:

  • remedial management
  • normal management
• Remedial Management – This generally shows the action plan as well as results of recovery measures on distressed accounts. Assessment of this block includes the evaluation of work-out plans, actions on vital documentary deficiencies, tracking of

  remedial actions and actual results of recovery programs and actions.
• Normal Management – This is an evaluation of the processes in the administration of problem accounts. The review deals basically on the credit monitoring and supervision activities, anticipation and recognition of problem