Credit policy of the bank
Development of our credit policy is based on balanced assessment of credit risks and close cooperation with the client, the borrower. When determining priorities in lending, the bank assesses the ability of the borrower to develop and compete in its market. The Credit Committee plays a key role in implementing the bank’s credit policy, It is authorised to make decisions regarding the risk appetite for the borrower and the project on behalf of the bank, and to ensure subsequent supervision.
- Within the scope of its credit policy, the bank seeks to generate profit with minimum risk and maximum protection for its clients and their funds.
- Loans are targeted and are granted on the conditions of repayment, payment of interest and collateralisation.
- Loans may be granted on a one-time basis or as revolving credit instruments.
- Usually, loans are secured by the borrower’s property or other guarantees and insurance accepted in standard banking practice. The sufficiency and feasibility of such guarantees should be the basis of loan repayment and profitability.
- The credit relationship between the bank and borrower are formalised in a written loan agreement. The loan agreement specifies the rights and obligations of the bank and borrower considering the nature of the loan, the amount and the procedure for payment of loan interest, the type of collateral, the procedure and term of loan repayment, and the liability of the parties for default of their obligations.