Principles for the Management of Credit Risk

The Committee has revised its principles for the management of credit risk (Credit Risk Principles). These principles provide guidelines for banking supervisory authorities to evaluate banks' credit risk management processes in four key areas: (i) establishing a suitable credit risk environment; (ii) operating under a sound credit-granting process; (iii) maintaining an appropriate credit administration, measurement and monitoring process; and (iv) ensuring adequate controls over credit risk.

The principles were first published 25 years ago and the have been updated following a review to align them with the current Basel Framework and the latest guidelines issued by the Committee.