Guidelines
Published Date: 01 March 2013

Credit risk is the risk arising from the uncertainty of an obligor’s ability to perform its contractual obligations. These guidelines apply to financial institutions (FIs) that extend credit, and provide FIs with guidance on key principles of, and sound practices in credit risk management.

The guidelines cover:

  • Risk management strategy and organisational structure.
  • Policies and procedures for origination, monitoring and administration of credit transactions and portfolios.
  • Measurement, monitoring and control of credit risk.
  • Credit risk in a trading book.