Credit monitoring
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The document outlines the credit monitoring processes employed by Muslim Commercial Bank, including the objectives such as checking fund utilization, assessing project implementation, and evaluating management effectiveness. It details two stages of credit monitoring: pre-operational and post-operational, along with the relevant departments and procedures involved. Additionally, it highlights MCB's status as Pakistan's 4th largest bank with a wide branch network and its approach to various credit facilities.
Credit monitoring
- 2. Credit Monitoring • process of periodically reviewing your credit • reports for accuracy • changes that could be indicative of fraudulent activity
- 3. Goals and Objectives of Monitoring: The main objectives of credit monitoring are following. For checking the utilization of fund which are syndicated by bank. To see the terms and condition as stipulated at the time of sanction of funds. For checking the implementation of project in time to avoid time and cost over-runs. For evaluating the performance in term of production, sales, profit etc. For checking the management effectiveness and staff motivation. For assessment of industrial climate and general and external environmental factors like Govt. policies, availability position of inputs like power, raw material etc. To detect signals and symptoms of sickness for corrective action. To check the accumulation of statutory dues, creditor, old stocks of finished goods etc.
- 5. Muslim Commercial Bank • 4th largest bank of Pakistan with A1+ rating • Assets based of USD 7 billion • 1190 Branches network all over the Pakistan • 22 Islamic branches all over the World • First Privatize bank of Pakistan • Business strategies • Information technology
- 6. Stages of Credit Monitoring There are two stages of credit monitoring • Pre-operational stage • Post operational stage
- 7. Pre-operational stage of MCB MCB branch Legal advisory departm ent branch Credit review departm ent branch Credit Risk Control division branch A
- 8. Remote commercial branch • Loan application Form • Basic borrower Fact sheet • Credit information bereaue
- 9. Legal advisory Department • Review the documents • Check the previous performance • Monitor the legal requirements • Send back to remote branch
- 10. Credit Review department • Review all the documents • Loan Limits (MCB providing 50% against collateral) • Payback tenure • Approval sheet • Internal conditions • Send back to remote branch
- 11. Credit Risk Control Department • Review the borrower performance in depth • Check borrower over due and right off • Facility advisory letter • Formal credit book • IB bonds 12,25,26,29 • Send back to remote branch
- 12. Remote branch • Disbursement authorization certificates • Approved all the documents by the borrower • Check to CRC division • Issuance loan after approval
- 13. Factors consider under loan issuance • Time over run • Cost over run • Roll back • PERT and CPM techniques • Clean up period • Vender management unit
- 14. MCB Regulators • Assets evaluation • Vender management unit • Clean up period • MUQADUM • Regional and local reviews committee
- 15. Post operational stage • Monitoring the credit • Control the risk factor • Inspection and audit reports
- 16. SBP requirements • Personal details timely • Stock securities (through MUQADAM ) • Insurance • Payback installment time • Authority visits
- 17. MCB other tools • Recovery notifications • Warning Calls • Authority Visit • Recovery Agencies • Legal Action
- 18. Credit Facilities of MCB • Bridge financing • Overdraft • Cash finance • Letter of credit • Bank grantees • Demand finance