The monitoring of loans should be assigned to qualified personnel working independently of the units responsible for granting credit. Internal rating systems call for close liaison with the crucial aspects of risk management, such as pricing, provisioning and deciding to review loans or ask for their repayment. Exhaustive and continually updated information on borrowers’ financial positions and on the value of collateral is fundamental.
Christine Lagarde: European Parliament plenary debate on the ECB Annual Report Introductory statement by Ms Christine Lagarde, President of the European Central Bank, at the plenary session of the European Parliament, Brussels, 8 February 2021.