3  BIS Review 134/1999  The Basel Committee has established the guidelines banks are to follow when making arrangements for credit risk management. Banks’ directors play a fundamental role in ensuring both that lending policies are consistent with banks’ ability to handle credit risks and that periodic cheeks are carried out on the results achieved.
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.