credit culture (1)

this can be defined as abank is attitude to all matters relating to its management of credit risk . If it is produce a sound credit risk portfolio it must :
- Fit with the overall business and organization of the bank. The culture must be capable of delivering the service the bank requires to meet the needs of its customers. It can only do this if it is compatible with the overall business strategy of the bank;
- be championed by top management of the bank . because the credit culture must be a balance between taking new risks and also limiting the amount of risk, it is bound to run into opposition of various types, Top management is the only source that can ensure that the culture supports appropriate credit standards,but also is commercial enough not to cost the bank good business, which in hindsight would have been good . but at the time of the decision 20\20 hindsight is not available . There must be agreement throughout the bank that there is some business it is willing to lose and a consensus as to the criteria to be used in deciding which . This policy has to be laid down by top management;