CREDIT MANAGEMENT OF COOPERATIVE BANK IN

BENGUET
Part I – Company’s Profile:

Number of Clients: _________

Number of Employees: _____

Years of Operation: _______

Capitalization: ________

Part 2 – Clients’ appraisal

2.1 Extent to which the company use client appraisal in Credit risk Management

Statement Strongly Agree Agree to Disagree Strongly Disagree

Agree a to a Disagree
Limited Limited
Extent Extent

The bank regularly reviews/appraises the      

client's background.

2.2 Level of agreement on client appraisal

Statement Strongly Agree Agree Disagree Strongly Disagree

Agree to a to a Disagree
Limited Limited
Extent Extent

1. Client assessments are viable strategies          

for credit risk management.

2. The Cooperative Bank in Benguet has          

capable personnel for carrying out client
assessments.

3. Client assessment considers the          

character of the customers seeking credit
facilities.
4. Aspects of collateral are considered          
while assessing clients.

5. Failure to assess customers’ ability to          

repay results in credit defaults.

Part 3 – Credit Risk Control

3.1 Level to which the company use credit risk control in Credit Management

Statement Strongly Agree Agree Disagree to Strongly Disagree

Agree to a a Limited Disagree
Limite Extent
d
Extent

Cooperative Bank in Benguet uses credit      

risk control.

Example of credit risk control:

 Accurately judging the
creditworthiness of potential
borrowers is far more effective than
chasing late payment after the fact.
 Know your customers
 Check borrower’s business profile on
companies and examine any financial
statements.
 Setting accurate credit limits.

3.2: Level of agreement on credit risk control

Statement Strongly Agree Agree Disagree Strongly Disagree

Agree to a to a Disagree
Limited Limited
Extent Extent

1.Imposing credit amount limits is a          

viable strategy in credit risk management.

2. The use of credit instructions regularly          

improves credit risk management.
3. Flexible settlement periods increase          
loan repayment.

4. Penalty for late payment enhances the          

customer's promise to loan settlement.

5. The use of beneficiary credit        

application forms improves checking and
credit management as well.

6. Credit teams’ involvement in making

decisions regarding credits is essential in
reducing credit risk.

7. Interest rates charged affect the

performance of loans in Cooperative Bank
in Benguet.

Part 4 – Collection Policy

4.1:  Extent to which Cooperative Bank in Benguet use collection policy in Credit risk
Management

Statement Strongly Agree Agree to Disagree Strongly Disagree

Agree a to a Disagree
Limited Limited
Extent Extent

Cooperative Bank in Benguet has a    

collection policy as part of credit risk
management.
 4.2:  Level of agreement on collection policy of Cooperative Bank in Benguet 

Statement Strongly Agree Agree Disagree Strongly Disagree

Agree to a to a Disagree
Limited Limited
Extent Extent

1. Accessible collection policies have          

assisted in effective credit risk
management.

2. Preparation of policies has been a          

challenge in credit risk management. 

3. Implementation of guarantee policies          

provides chances for credit recovery in
case of loan defaults.

4. Staff encouragements are effective in          

improving the recovery of criminal loans.

5. Regular evaluations have been done on        

collection policies to increase the state of
credit risk management.

6. A strict policy is more effective in debt

recovery than a lenient policy.