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Guidelines
 Published Date: 01 March 2013

Guidelines on Risk Management Practices – Credit Risk

Guidelines for financial institutions on managing their credit risk.
Applies to: Full Bank (Locally Incorporated) , Full Bank (Branch) , Wholesale Bank (Branch) , Wholesale Bank (Locally Incorporated) , Finance Company , Merchant Bank (Locally Incorporated) , Merchant Bank (Branch) , Direct Insurer (Life) , Direct Insurer (General) , Direct Insurer (Composite) , Reinsurer (Life) , Reinsurer (General) , Reinsurer (Composite) , Captive Insurer , Lloyd's Asia Scheme , Financial Holding Company (Insurance) , Dealing in Capital Markets Products , Product Financing , Licensed Fund Management Company , Corporate Finance Advisory , REIT Management , Registered Fund Management Company , Credit Rating Agency , Securities Crowdfunding , Venture Capital Fund Management Company , Exempt Futures Broker , Exempt OTC Derivatives Broker , Providing Custodial Services , Exempt Corporate Finance Adviser Serving Accredited Investors , Approved CIS Trustee , Exempt Trust Company , Licensed Trust Company , Exempt Person Providing Trust Services , Clearing House , Credit/Charge Card Issuer , Major Payment Institution , Standard Payment Institution , Money-changing Licensee
View Document Guidelines on Risk Management Practices – Credit Risk (337.8 KB)

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.