Corporate Governance

Corporate Governance

Investor Relations

Executive Credit Committee - Terms of Reference

Executive Credit Committee - Terms of Reference

I. MANDATE

I. MANDATE The Executive Credit Committee (“ECC”) serves as the credit committee of the Board of Directors (the “Board”). Its mandate is to provide an oversight of the Bank’s credit activities on behalf of the Board.

The ECC will review and approve requests for customer credit facilities that require the approval of the Board. In addition, it will approve the Bank’s credit policies and overall credit risk profile, taking into consideration relevant laws and regulations. To ensure the quality of the loan portfolio of the Bank is sound and within the approved credit risk profile, the ECC will review the Bank’s key credit related management and stress testing reports.

II. FUNCTIONS

II. FUNCTIONS
1. Review and approve inputs pertaining to credit risk for the establishment of the Risk Appetite Statement of the Bank recommended by the Credit Committee (“CC”).
2. Review and approve credit risk limits and parameters recommended by the CC.
3. Review and approve new credit policies and amendments to existing credit policies recommended by the CC. ECC shall seek approval from the full Board if the ECC considers such credit policies or any amendments thereto to be material.
4. Review and approve applications for customer credit facilities that require the approval of the Board recommended by the CC.
5. Review and approve charge-off of the loans recommended by the CC.

III. MEETING FREQUENCY AND MINUTES

III. MEETING FREQUENCY AND MINUTESThe ECC will meet as and when required.

Control and Risk Management Division will assign a senior staff to act as the Committee Secretary who will also act as the meeting convenor.

Meeting minutes must be prepared by the Committee Secretary of the ECC.

IV. MEMBERSHIP AND QUORUM

IV. MEMBERSHIP AND QUORUMMembers of the ECC are appointed or removed by the Board. ECC members must be a member of the Board. The Committee will consist of no less than 3 members, including the Chairman and the Vice-Chairman of the Board and the Chief Executive Officer of the Bank. The Chairman or the Vice Chairman of the Board will act as the Chairman of the ECC.

The quorum shall be at least two-thirds (2/3) of the ECC members, and must include the Chairman.

V. GOVERNANCE

V. GOVERNANCEResolutions, including approval of credit applications, will be based on a unanimous decision of the present members.

VI. REPORTING

VI. REPORTINGThe ECC shall report any major issues pertaining to the credit risk of the Bank to the Board.

15 December 2020
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