2 Policy Definition Overview
Policy Definition is the process followed by Policy Analysts in the financial institutions to define Credit Policy for various Financial products and services based on the guidelines from the regulatory bodies. Credit Policies defined in OBCFPM acts as the tool to validate business transaction and mitigate the overall risk. The fields validated in credit processes are listed separately in the document.
The following are the stages involved in Policy Definition:
- Policy Initiation
- Sector Evaluation
- Headroom Definition
- Policy Definition
- Business Recommendation
- Approval from Legal Head
- Approval from Policy Team
- Approval from Credit Team
- Risk Recommendations
- Compliance Recommendations
- Policy Approval