•
development and implementation of credit products,
•
setting authority levels to approve deviations from credit policies and product exceptions,
•
development and implementation of tools supporting risk measurement and assessment.
•
analysis and assessment of credit processes and the scope of functional controls,
•
administration of the credit exposure portfolio,
•
training of staff members participating in the credit process,
•
development and maintenance of an incentive system for employees, focused on compliance with internal
credit standards.
Managing the credit risk profile, the Bank:
•
determines, monitors and reports internal concentration limits for economic sectors, types of collateral,
regions and mortgage-backed credit exposures,
•
monitors and analyses the quality of accepted collateral,
•
monitors and reports compliance with prudential standards resulting from the Banking Law Act,
•
determines, monitors and reports internal concentration limits for each sub-portfolio,
•
defines changes to credit policies and product offer providing for economic cycles and changes in the property
market,
•
acquires market data on the quality of credit portfolios and compares them with its own credit portfolios.
Capital adequacy and recognition of impairment for expected credit losses
The Group secures impairment of credit exposures by recognising impairment for expected credit losses. The Group
further secures fluctuating losses versus the average levels of expected losses (that is unexpected losses) by
ensuring an adequate level of regulatory capital and economic capital
Risk-weighted assets and capital requirements are calculated by the Bank as follows:
•
for retail exposures – in compliance with the standard method,
•
for corporate credit exposures – in compliance with the advanced internal rating method with the exception of
exposures to sovereigns, central banks, local governments and public sector entities for which the Group
applies the standard method.
Provisions for credit risk at the Bank for all credit exposures are calculated in compliance with International Financial
Reporting Standards.
Credit risk management of individually significant credit exposures
Credit risk management for individually significant credit exposures covers:
•
determination of the credit risk management process for transactions exposed to credit risk,
•
management of documentary requirements applicable to the Bank's credit clients,
•
determination of credit analysis standards,
•
determination of the maximum levels of DTI, LTV and the minimum levels of clients; own contribution for
specific products, transaction types,
•
development of principles of approving credit decisions and management of credit approval competencies,
•
management of the principles relating to:
−
determination of risk measures applying risk models used at the Bank,
−
verification of timely repayments,
−
client economic and financial situation monitoring,
−
monitoring of compliance with contractual terms and conditions by clients,
−
monitoring of other defined warning signals,
−
acceptance and monitoring of collateral accepted by the Bank,
−
utilisation and monitoring of limits approved by the Bank.
•
rules of establishing impairment allowances to credit exposures and provisions for off-balance sheet liabilities,
•
management of credit risk of portfolio clients at Stage 3.
The following activities are performed as part of the process of granting and managing individually significant credit
exposures:
•
client and transaction risk assessment,
•
approving credit decisions,
•
monitoring,
•
restructuring and collection.
