Questionnaire: Section A: Background Information
Questionnaire: Section A: Background Information
Questionnaire: Section A: Background Information
1)Pleaseaindicateayourarankainathe bank
Supervisor
Manager
Director
2) For how long has this bank been in operation in Bangalore, India?
1 to 5 years
6-10 years
Between 1 to 5 years
Between 5 to 10 years
4)Using the categories below, please indicate the number of branches you have in Bangalore,
India.
Less than 5
Between 5-10
Between 11-20
20 & above
SECTION B: CREDIT RISK MANAGEMENT
1) Does your Bank have a well-documented Credit Risk Management policy that elaborates
the products offered and all activities that have to be performed to manage the Credit?
Yes
No
Branch level
Department level
Quarterly
Semi-annually
Annually
4) WhoainayourabankaisaresponsibleaforaformulatingatheaCreditaRiskamanagement
practices?
Board of Directors
Branch Level
5) Who approves the overall credit risk management policy in your bank?
Non-Executive Directors
Independent Directors
7) To what extent does Corporation Bank involve the following parties in formulating credit
risk management policies? Use scale 1 to 5 where 1 is to a lesser extent and 5 to a greater
extent.
Parties 1 2 3 4 5
Executive management
Board of Directors
Credit Committee
Credit Managers
Employees
8) An effective credit risk management system that ensures repayment of loans by borrowers
is critical in dealing with asymmetric information problems and in reducing the level of loan
losses. Listed below are some of the factors that influence effectiveness of a credit risk
management system. With respect to your Bank, please indicate the extent to which you
agree/disagree that indeed the factors are considered important in influencing the
effectiveness of a credit risk management system (Tick as appropriate)
Factors that influence the Strongly Disagree Somehow Agree Strongly
effectiveness of a credit risk Disagree agree agree
management system
Establishment of an appropriate
credit environment through
policy and strategies (guidelines)
that clearly outline the scope and
allocation of bank credit
facilities
Maintenance of an appropriate
credit administration that
involves monitoring process as
well as adequate control over
credit
Top management support is
required to ensure that there are
proper and clear guidelines in
managing credit
All credit risk management
guidelines should be properly
communicated throughout the
organization and everybody
involved in credit risk
management should understand
them
Collection of reliable
information from prospective
borrowers is critical in
accomplishing effective
screening)
High quality staff are critical to
ensure that the depth of
knowledge and judgment needed
is always available
Monitoring of borrowers is very
important as current and
potential exposures change with
both the passage of time and the
movements in the underlying
variables, and also very
important in dealing with moral
hazard problem
Supportive technologies and
equipment such as computers
are useful in credit analysis,
monitoring and control, as they
make it easy to keep track on
trend of credits within the
portfolio
9) Which of the following do you believe are the most important potential benefits of a Credit
Risk Management strategy?
Reduction in losses
Scenario analysis
Stress testing
Sensitivity analysis
11) Please indicate the extent to which your organization undertakes each of the listed
activities with regards to monitoring of borrowers (Tick as appropriate)
13) Major challenges faced in successful implementation of Credit Risk Management policies
Calculation of parameters