Credit Committee Charter
I. Purpose and Scope
In line with the Bank’s trusts of maintaining high quality, sound and profitable loan portfolio:
- To evaluate and approve loan accounts within its credit approval authority.
- To review credit evaluation and approval procedures and recommend changes, if necessary to ensure continues relevancy and effectiveness.
II. Duties and Responsibilities
The Committee will carry out the following responsibilities:
- Establishing the Bank’s overall credit risk capacity
- Setting strategic targets, portfolio composition and limits at the corporate level.
- Reviewing and approving credit decision that may pose material risks to the Bank’s business strategy or reputation.
- Reviewing the financial results of the Bank and determining action plans.
- Reviewing and approving all loans and credit transactions with the scope of its authority.
III. Resources and Authority
The Credit Committee in carrying out its objectives, is authority to:
- Call on Management Committee, Lending Committee, concerned group/area/department/branch head and accounts officers, credit appraisers/ investigators and other responsible employees in the conduct of its duties and responsibilities.
- Access data or records of loan accounts requiring actions from the Committee.
In case of non-cooperation of management in the conduct of the Committee’s functions, the penalties imposed under the Manual of Regulations for Banks (MORB) shall be applied and related provisions of the Code of Conduct shall also be enforced.
IV. Evaluation and Reports
The Credit Committee shall review this charter at least annually and submit recommendations for any additions or changes for approval of the Board
V. Committee Composition and Resource Persons
The Committee shall consist of at least five (5) members of the Board of Directors (BOD).
The BOD will appoint Committee members and the Committee chair.
The Committee will invite members of management, auditors or others to attend meetings and provide pertinent information, as necessary
VI. Materials for Agenda
Meeting agendas will be prepared and provided in advance to members, along with appropriate briefing materials.
Minutes will be prepared by the Corporate Secretary.
The Corporate Secretary shall keep written minutes of meetings, which shall be maintained in the books and records of the Bank and reported to the Management.
VII. Frequency of Meetings
The Committee shall meet when necessary.
VIII. Approving Authority
The Board of Directors