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2011-The Bank’s Portfolio Credit Risk Review


Over the last twelve months there have been significant adverse developments in the Bank‟s operating environment marked by downgrades and negative rating outlook of some of its largest sovereign borrowers and private sector counterparties. Financial market turbulences continue to deepen. The signs of potential economic downturns and the spill-over effects on the Bank‟s borrowers are beginning to emerge. All these call for active risk portfolio management to cope with higher than potential systemic and contagion risks emanating from these recent developments. Nevertheless, the overall credit quality profile of the Bank‟s loan portfolio remains good, largely due to efforts made during the previous years to strengthen the risk management framework, upgrade risk infrastructure and tools, and better quality control at entry. Board and Senior Management oversight and active involvement in the risk appetite definition have also contributed significantly to improving the Bank‟s credit processes.

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