Bank Credit Policy, Administration and Remedial Strategies

Bank Credit Policy, Administration and Remedial Strategies is designed to contribute knowledge that would help to stabilize the banking system and stem future global financial crisis. It addresses issues in the long-term implications of the views which its author upholds in the book. At the preliminary stage, it profiles contemporary credit risk crisis. That defines the problem which takes centre stage of the book. Diagnosing credit risk as the canker of financial crisis in the banking system, it challenges contemporary management of credit risk in global banks. The book propounds five evolutionary stages of credit risk management. Doing so, it discusses implications of the stages for bank management. With appropriate case studies and analyses, the book addresses five major issues: -The dynamics of contemporary bank credit, risk, and management -Credit risk management methodology vis-à-vis bank lending need -Growing international concerns about global bank credit risk -Implications of Basel I and Basel II Accords for global bank credit risk -Evolving thinking and issues in failed bank credit risk management This book focuses on two of the three Pillars of credit risk management in banking - credit policy and control, also referred to as credit administration or credit compliance (Pillar 2); and loan workout, remediation and recovery (Pillar 3). I dealt with credit analysis, representing the Pillar 1, in another book - Analyzing and Managing Risks in Bank Lending. Pillar 2 ensures that the lending portfolio is of high quality, profitable, and effectively managed. Pillar 3 seeks, regularizes, and adopts measures that ensure that a bank always has efficient processes for loan workout, remediation of non-performing loans, and recovery of classified or lost risk assets.