Effective credit risk management continues to be essential in today’s modern economies. This is evident from the size of bank balance sheets and from the volume of problematic debt held by financial institutions in many countries. Many of the Bank’s customers could be adversely affected by the Covid 19 virus The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the prudential regulation of banks. The BCBS strongly encourages that Banks must have in place a system for monitoring the condition of individual credits, including determining the adequacy of provisions and reserves.
Critically analyse the issues arising in the development and implementation of banks’ systems for monitoring the condition of individual credits, including determining the adequacy of provisions and reserves.
