RMA is beginning a new Web-based survey of credit approval and limit-management process in financial institutions. The survey’s goal is to identify best practices and provide an ongoing benchmark to help members understand their risks.
Philadelphia, Pa. (October 3, 2007) – The Risk Management Association (RMA) is seeking participants for a new capital markets study of credit approval and limit-management process in financial institutions. The Web-based survey is part of an ongoing, long-term effort by RMA to identify best practices and provide an ongoing benchmark to help members understand market risk.
“The landscape surrounding credit and limit approvals for all bank businesses has grown increasingly complex over the past few years, as institutions have embraced additional credit-based products, such as structured finance vehicles and derivatives,” said RMA President and CEO Kevin Blakely. “This 50-question survey is intended to be an exchange of information reflecting RMA’s continuing efforts to help members better understand the evolving nature of their market and counterparty risk exposures.”
This survey focuses on practices for credit and credit limit approval processes with regard to both trading and non-trading businesses. It also asks about institutions’ integration of Basel II methodologies into their approaches to credit and limit risk management.
The final report, to be issued by the end of 2007, will be available only to survey participants. It will describe the current state of Credit Approval and Limit Management Processes. It will clearly detail the most prevalent methods, tools, and decision processes used to determine leading practices.
Forty-five global institutions based in North America, Europe, and Asia took part in RMA’s last market risk study, “Market Risk Trading Activities and Counterparty Risks.” The 330-page final report provided a benchmark for best practices in trading activities and counterparty credit risk.
The survey started September 27, 2007 and will close October 26, 2007. Institutions interested in participating in this study can contact RMA Market Risk Manager Fran Garritt , (+1) 215-446-4122.
About RMA
Founded in 1914, The Risk Management Association is a not-for-profit, member-driven professional association whose sole purpose is to advance the use of sound risk principles in the financial services industry. RMA promotes an enterprise approach to risk management that focuses on credit risk, market risk, and operational risk.
Headquartered in Philadelphia, Pennsylvania, RMA has 3,000 institutional members that include banks of all sizes as well as nonbank financial institutions. They are represented in the Association by 18,000 risk management professionals who are chapter members in financial centers throughout North America, Europe, and Asia/Pacific. Visit RMA on the Web at www.rmahq.org.
Contact:
Kathleen M. Beans
PR Manager
215-446-4095