BANK 4.2.3 Guidance

1 The level at which credit decisions are made should vary depending on the kind and amount of credit and the nature, scale and complexity of the firm's business. For some firms, a credit committee with formal terms of reference might be appropriate; for others, individuals with pre-assigned limits would do.
2 A banking business firm should ensure, through periodic independent audits, that the credit approval function is properly managed and that credit exposures comply with prudential standards and internal limits. The results of audits should be reported directly to the governing body, credit committee or senior management, as appropriate.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).