Clear information on policy choices must be given to all bank structures involved in lending. To ensure that objectives are attained, banks’ top managers must ensure that precise instructions are circulated setting out the various levels of responsibility, establish operational limits and extend credit risk management systems to the whole range of bank assets.
When granting loans, banks should evaluate all the information available in order to acquire a complete profile of borrowers, including their exposure to cyclical or sectoral events, group relationships, if any, the use to which loans are to be put and the sources of the funds that will permit repayment.