2.1 About Collateral Review Process
A brief introduction to the Collateral Review process.
As part of Credit Portfolio management, the banks undertake periodic / Event Triggered Review of collateral of its customers. This ensures that the bank can control and mitigate the inherent credit risk involved in collateral management.
The Collateral Review process can be triggered manually by the Credit Officer
as well as automatically by the back office system (OBELCM). The various activities
performed in the Collateral Review process are:
- Capturing application details
- Uploading related Mandatory and Non Mandatory documents
- Verifying documents and capture collateral details
- Capturing Internal/External Legal Opinion
- Performing Risk Evaluation
- Performing Internal/External Valuation of Collateral
- Performing Field Investigation
- Generating Collateral Agreement
- Receiving customer acceptance of Collateral Agreement
- Collateral Safekeeping
The flow chart illustrating various stages in the Collateral Review process is provided
below for reference.
