Hand Over

In accordance with operational Risk regarding hand over procedures I provided you with the
following information:

1. Our Mission (Credit Department)

The Credit Department is responsible for maintaining a high quality of loans disbursed while
selling to all customers that represent prudent credit risk.

We will also provide flexible mechanisms to protect our substantial receivable investment.

2. Our Goals (Credit Department)

 Our goals are to limit bad debts to below 1% of loans outstanding

 Loan processing period to be at 3 working days at most , and
 Monitor about 70% of our portfolio size on loans disbursed

3. Job Description – Credit Analyst

General Discription

The credit analyst is responsible for ensuring the common practice of credit policies and
procedures among Credit Officers in the respective unit. He/She is also supposed to develop a
personal portfolio.

Description of specific duties

 Client Service and Promotion

 Performs the covenant role of a Credit Officer and promotes all banking services of the
institution whether alone or in a group,
 Ensure efficient zoning for Credit Officers,
 Pays special attention to offering fast and efficient service to clients
 Analyse repeated clients by evaluation of the loan history in order to promote a top-up
loan.
 Taking measures for acquisition for new business opportunities, as clarified with and in
close co-operation with the Branch Manager.

 Management of Loan portfolio

 Evaluate the loan application in the field regarding the;
o References and business environment of the applicant

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 o Social environment and the family situation of the applicant
o Pledged collateral
o Guarantor
o Financial key indicators such as cash flow, balance sheet and profit and loss
calculation.
 Reject loan applications that do not qualify for a loan at a rejection committee.
 Ensure proper filling among credit officers within the branch.

 Participation in Credit Committee

 Prepares the credit summary and all required documents and forwards to the Head of
Credit for discussion and approval or rejection.

 Monitoring and Arrears Management.

 Observe the daily arrears report and the pending list for each member in the branch.
 Ensures direct contact to customers a day after installment has delayed.
 Issue arrears, habitual lateness and demand notices to clients in consultation with the
Head of Credit.
 Develops a monitoring chart for all clients to be monitored to ensure consistent follow up
of loans to be monitored.
 Organises arrears committees and proposal for restructuring or rescheduling the loan.

 Employee Development
 Leads and supervises a team of Credit officers to ensure efficient staffing levels in the
respective unit, and submitting monthly reports on this to the Head of Credit.
 Makes sure that Credit Officers know their responsibilities and how to perform them.
 Assist in training and coaching of Credit Officer trainee.

4. Job Description – Credit Officer

General Description of Position or Job

The Credit Officer is responsible for building and maintaining a healthy portfolio by promoting
banking services to prospective and existing clients, monitoring of loans disbursed and managing
arrears.

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Description of specific duties

 Client service and Promotion

 Promotes all banking services of the institution whether alone or in a group.
 Assisting in demand acquisition and zoning of areas of operation
 Offers fast and efficient service to clients
 Analises clients’ businesses by the evaluation of their financial status and intangible
business outlook.
 Effectively follows up on loans due to expire to ensure their retention.

 Management of Loan Portfolio

 Prepares daily planner for visiting of clients in order to evaluate loan applications
 Evaluates the loan applications in the field regarding the;
o References and business environment of the applicant
o Social environment and the family situation of the applicant
o Pledged collateral
o Guarantor
o Financial status of business.
 Rejects loan applications that do not qualify for a loan and presents at a rejection
committee for confirmation.
 Prepares the credit summary and send it to the Credit Manager for initial approval.

 Disburses the loan and explains to the client and the guarantors the;
o Repayment schedule
o Loan contract
o Guarantor contract
o Pledge collateral form
 Ensures proper filling of loan files in cabinets.

 Participation in Credit Committee

 Prepares the credit summary and all required documents needed in an acceptably filed
manner for approval.

 Monitoring and Arrears Management

 Observes the arrears report and the pending list everyday

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  Contact customers directly if installment was not paid
 Issues arrears, demand and notice of habitual lateness in consultation with the Credit
Analyst.
 Gathers the reason(s) for arrears and presents at arrears committee
 Constantly monitors loans disbursed
 Supports other Credit Officers in the branch.

5. Urgent Needs of the Branch

 The credit department currently shares its office with the two risk coordinators making
the office congested.
 The department has only one desktop computer making it difficult for officers to work
 No printer for the department compelling officers to print through the customer service.

I therefore recommend you pursue the early acquisition of a computer and a printer for the credit
department these branch.

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