Credit Committee

The Committee consisted of two Independent Non-Executive Directors and two Non-Executive Directors as at 30 June 2021. In line with its approved Terms of Reference, the Committee should meet at least four times a year. *The 4 meetings being referred pertain to the quarterly meetings. The Committee also had weekly meetings as further explained below.

Weekly Credit Committee held:

During the financial year under review, the members of the Credit Committee met to discuss and approve credit files on a weekly basis. The Bank has set credit limits for executive approval at a level which necessitates the involvement of Credit Committee in many files. These limits are under review so as to allow the executive management to take more independent action on files. The Bank is looking to expand the experience base of its credit experts to permit this change. The approvals granted are then ratified in the quarterly Credit Committee meetings referred above. From December 2020 to June 2021, there were 23 such meetings held. The frequency of these meetings were necessary by requirement to ensure rigorous debates on credit matters were applied instead of by circulation.

Composition:

The Committee shall consist of at least four members.

Membership as at 30 June 2021:

The membership of the Committee shall be appointed by the Board from amongst the Directors of the Bank and shall be composed of at least 50% of Non-Executive Independent Directors. As at 30 June 2021, the Committee’s membership is equally represented between Non-Executive and Independent Non-Executive Directors; this adheres to the minimum of a 50% representation of Non-Executive Independent Directors in line with the membership rudiments.

Members Date of appointment Board status
Inderjit Singh Bedi
(Chairperson)		 October 2020 Independent Non-Executive Director
Jean-Raymond Rey November 2020 Non-Executive Director
Christian St-Arnaud October 2020 Non-Executive Director
Joan Jill Wan Bok Nale November 2020 Independent Non-Executive Director

Note:

Thierry Vallet, Interim CEO, is in attendance but is a non-voting member. Sevami Moonien, Head of Credit Risk and Rakesh Seesurn, Head of Risk are also in attendance in the Committee for their relevant sections. Head of Businesses are also in attendance as and when required.

Fundamental functions comprise:
  • Oversee the credit risk management of the Bank, including reviewing the loan portfolio and monitoring of large credit exposures; 
  • Approving/reviewing the credit risk policy and lending guidelines at least once a year; 
  • Approving/declining credit applications in accordance with the Bank’s Credit Risk Policy when exceeding limits delegated to Management Credit Committee; 
  • Reviewing and approving any deviations from the Bank’s Credit Risk Policy;
  • Ensuring that management establishes adequate credit assessment processes and effective controls to identify any deterioration in the loan portfolio;
  • Approving any delegation of credit approval authority to Head of Credit Risk and Management Credit Committee;
  • The monitoring of impaired Credit and overall level of provisioning needs to be approved by both Credit Committee and Risk Committee; and
  • Reviewing of Restructured facilities which shall be approved by both Credit Committee and Risk Committee.
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