Vision & Purpose
The purpose of the role is to support the Senior Manager in the delivery of a robust Credit Quality Assurance program that ensures sound quality in the credit portfolio through effective monitoring and review of the credit environment, processes and related developments, and ensuring compliance with policies and approval terms and conditions throughout the life of the credit facility.
The credit quality assurance process is expected to provide transparency and assurance on how effectively credit risks are being managed, including conducting of monitoring and evaluation procedures provided for under the RMPPs, formulating and implementing corrective action plans, and monitor early warning indicators, bringing to management’s attention any notable adverse credit developments, thus allowing for timely remedial actions to be taken by the Credit Quality Assurance Unit (CQAU) or other departments as the case may be.
Duties & Responsibilities
The CQA Manager shall execute his/her duties with a focus on portfolio monitoring, remediation of facilities in an assigned portfolio, as well as providing timely and comprehensive reports as advised by the Senior Manager.
Credit Quality Monitoring
Perform scheduled and event-triggered credit quality monitoring activities, including site visits, on specific credit facilities and the credit environment including assessment and monitoring of the following:
- Follow credit policies, procedures, methodologies, approach and systems used in credit risk management and recommend/monitor implementation of corrective actions as considered appropriate.
- Adherence to credit covenants, undertakings and other terms and conditions of a credit facility.
- Adherence to margining requirements for security (collateral) held to ensure security values do not fall below the set thresholds and call for security enhancement or top-up as necessary.
Credit Portfolio Review
Perform scheduled and event-triggered credit portfolio reviews on the credit portfolio. The reviews shall cover at the minimum:
- Asset quality reviews – appraisal of the conduct and profitability of individual credit facility; risk grade review; analysis of the borrower’s financial statements.
- Credit approval process review – examining the approval process credit facility went through, including pre-assessment, credit approval, disbursement, and credit administration.
- Administrative and documentation review – verifying the existence and adequacy of the documents associated with credit facility files, including completeness of credit grading and accuracy of loan grades assigned by credit officers.
- Collateral (security) review – physical check of all security and loan documents, confirmation of registration status, assessment of the value and enforceability of collateral.
- Compliance review – compliance with internal policies and procedures including mandate requirements, adherence to loan covenants.
- Quality of Assigned Portfolio– Manage an assigned portfolio of distressed credit facilities/ loans to within approved risk appetite limits, and performance metrics.
- Remedial Strategies– Define and recommend appropriate loan work-out /remedial strategies including but not limited to restructuring, rescheduling to reduce the Bank’s credit risk and maximize return by maintaining acceptable asset quality.
- Strong Partnerships– Collaborate with other key stakeholders in the Bank including Business Development, Credit Assessment, and Operations for the timely resolution of sub-performing credit facilities.
- Engagement with Legal– Work closely with and support legal counsel for the initiation and implementation of approved acceleration and enforcement work out plans.
- Risk Measurement– Ensure the appropriate risk grading and staging of all facilities in the assigned portfolio as well as the preparation and submission of timely, reliable and comprehensive remediation Internal Memos and Reports.
- Prepare and submit accurate and timely reports to Senior Manager for review and sign-off on a monthly, quarterly, half-yearly and annual basis, highlighting performance against defined credit quality parameters.
- Develop and maintain effective internal and external relationships through individual contacts and Bank facilitated forums.
- Represent the CQA Unit as delegated by the Senior Manager, in internal and external meetings and committees.
- Maintain a high-level relationship with rating agencies to understand and implement compliance requirements to maintain a high rating for the Bank.
- Maintain high-level relationships with industry associations and CQA heads of peer organizations to enhance capacity building and benchmarking of best practices, executing joint projects to address shared risks and concerns, developing outlines of new methodologies and frameworks, etc.