Bank Sets New Credit Policy to Boost Economic Activity
The Bank’s Board of Directors has approved a new credit policy aimed at stimulating economic activity and promoting the overall development of the Iraqi economy.
Objectives of Granting Collectable Loans
- Invest bank funds profitably for the benefit of shareholders
- Protect depositors
- Serve the legitimate credit needs of various economic areas, sectors, and activities
The new policy sets out a written plan that clearly outlines the objectives of the credit portfolio, which will be reviewed periodically and updated as needed. The plan includes guidelines on:
- Diversification of credits to reduce risk
- Specialization in specific types of loans based on sector, geographical, and demographic criteria
- Delegations of authority for approving loans
Procedures for Granting Credits
- Documentation required for each type of credit
- Payment procedures
- Follow-up mechanisms to ensure timely repayment
The policy also outlines the classification of credits into six categories:
- Preferred Credits: defined by specific criteria, including the borrower’s financial position, payment history, and creditworthiness.
- Good (Standard) Credits
- Medium Credits
- Sub-Standard Credits
- Bad (Doubtful) Credits
- Loss Credits
Information System
The bank will implement an information system to manage the credit portfolio, generate reports, and assess whether the credit portfolio is meeting the needs and adhering to the Bank Credit Policy.
Commitment to Compliance
“We are committed to ensuring that our lending practices are sound and safe, while also protecting the interests of our depositors,” said a spokesperson for the bank. The new credit policy will be applied to all borrowers effective immediately.
Key Features of the New Credit Policy
- Diversification of credits to reduce risk
- Specialization in specific types of loans based on sector, geographical, and demographic criteria
- Delegations of authority for approving loans
- Procedures for granting credits, including documentation and payment procedures
- Classification of credits into six categories
- Information system to manage the credit portfolio and generate reports
Compliance with Regulatory Instructions
The new credit policy is designed to comply with regulatory instructions issued by the Central Bank of Iraq (CBI) and other competent laws.
Customer Compliance
The bank urges all customers to review and comply with the new credit policy effective immediately. Customers who fail to comply with the new guidelines may be subject to penalties or restrictions on their accounts.
Contact Information
For more information on the new credit policy, please contact the bank’s customer service department at [insert phone number] or [insert email address].