BANK 4.2.1 Credit risk management policy

(1) A banking business firm must establish and implement a credit risk management policy:
(a) that is appropriate for the nature, scale and complexity of its business and for its risk profile; and
(b) that enables the firm to identify, measure, evaluate, manage and control or mitigate credit risk.
(2) The objective of the policy is to give the firm the capacity to absorb any existing and estimated future losses arising from credit risk.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).