Credit Policy Manual for Rural and Community Banks, June 2018

The manual outlines the minimum requirements for the organizational and operational structure of the lending business of the Bank. It defines the approach to be taken by the Bank to appropriately advance credit and manage credit risk while maintaining an optimum portfolio. The manual's objective is to provide all personnel with a comprehensive understanding of how credit of any nature is to be extended by the Bank. It has been designed to assist credit staff in the performance of their duties on a day-to-day basis. The main objectives are to ensure thorough loan assessment and proper monitoring of all loans outstanding, i.e., supervision of performing loans and recovery of loans in arrears. The Bank's client group consists of micro, small, and medium entities or individual businessmen and businesswomen. These businesses can be active in the sectors of trade, services, or production. The Bank's credit analysis takes into account the socio-economic characteristics and the periodically recurring financing requirements of the target group. The manual outlines the eligible businesses that the Bank makes loans and facilities available to, which are categorized into seven primary sectors: commercial, manufacturing and industrial, agriculture, processed food, building and construction, tourism projects, and services. The Credit Committee is responsible for all credit-related issues and decisions of the bank. Its primary responsibilities include assisting the Board of Directors in the review and understanding of the Bank's credit portfolio and activities, advising and consulting with the Bank in the establishment of a Bank loan portfolio, reviewing appraisals on all loan applications exceeding the mandate of the manager, and approving all loans that meet the terms and conditions adopted by the board of directors for credit management. The Committee will consist of not less than three members of the Board of the Bank, appointed annually for a term of one year. The Committee will meet monthly and may also be called upon for advice and comment on large loan requests or actions as needed. Members may be present either in person or electronically and information packages will be distributed to all members. All bank employees involved with lending are directly accountable for their actions to their supervisor and shall operate through the chain of command within the various lending functions. Bank employees are responsible for maintaining the highest standards of performance by thoroughly understanding and adhering to the bank's credit processes, policies, standards, and product requirements. The manual outlines the role of the Board of Directors, the Credit Committee, and lending personnel in the credit administration and management of the Bank. It provides a comprehensive understanding of how credit of any nature is to be extended by the Bank and ensures thorough loan assessment and proper monitoring of all loans outstanding. The Bank's organizational structure is designed to ensure that credit decisions are made in a prudent and sound manner. The Board of Directors is responsible for providing policy direction to the staff of the Bank, while the Credit Committee is responsible for all credit-related issues and decisions of the Bank. Lending personnel are directly accountable for their actions to their supervisor and shall operate through the chain of command within the various lending functions. The manual outlines the procedures for loan approval, loan monitoring, and loan recovery. It also outlines the procedures for managing risks after loan approval, including credit risk management and arrears management. The manual provides a comprehensive framework for the credit administration and management of the Bank, ensuring that credit decisions are made in a prudent and sound manner. The Bank's credit policy is designed to ensure that credit is extended in a prudent and sound manner. The policy outlines the procedures for loan approval, loan monitoring, and loan recovery. It also outlines the procedures for managing risks after loan approval, including credit risk management and arrears management. The manual provides a comprehensive framework for the credit administration and management of the Bank, ensuring that credit decisions are made in a prudent and sound manner. The Bank's organizational structure is designed to ensure that credit decisions are made in a prudent and sound manner, with the Board of Directors providing policy direction to the staff of the Bank and the Credit Committee responsible for all credit-related issues and decisions of the Bank.