Dichoso, Althea Claress R. Prof.

Leticia Olarte

3BAF-A

Essay: In no more than 5 sentences, answer the following in your own words.

1. Why did they establish the RMA code of ethics?

• The RMA code of ethics was created in order to improve banking and financial institutions
by allowing them to concentrate more on the vital relationships of information exchange
protocols for the successful and effective conduct when it comes to lending
responsibilities.

2. What is the importance of code of ethics in credit and collection?

• For companies and corporations, establishing an ethics code for credit and collection is
crucial to have a more structured set of guidelines or manners that aids staff members
and group members in making judgments that are in line with the company’s values.
Additionally, a code of ethics is essential, particularly for the kind of business that entails
having a suitable set of rules and values and lending money to the clients. We can deliver
a superior service, enabling the business to achieve credibility and integrity from the
customers.

3. Why is confidentiality critical in giving credit information to our inquirer?

• Because we are discussing the personal information of the clients when we talk about
their credit information in the corporate sector, confidentiality. We are not permitted to
disclose the information with the inquirer because it violates the company’s code of
ethics. Additionally, confidentiality also safeguards customers’ rights and prohibits third
parties from abusing these kinds of regardless of whether it is unlawful, credit
information.

4. When is breach of confidentiality allowed in sending information about the client?

• Only when a customer is transacting with another bank and that bank asks about the
specific client’s credit information is a violation of confidentiality in sending information
about the client permitted. For instance, the bank requesting the information should first
outline its area of expertise. Since doing so prevents duplication of effort and is consistent
with the cooperative nature of the transmission of credit information, it is crucial that
both the answer and the inquirer share information. Additionally, banks should exercise
caution when publishing information about the interest rate charged and the minimum
compensatory balance requirement as doing so may result in customer complaints of
alleged violations.