Risk Management Policies, Risk Appetite Statements and Guidelines
Risk Management Policies, Risk Appetite Statements and Guidelines
At Myanmar Metro Bank, we prioritize the stability and security of our operations through robust risk management practices. Our comprehensive policies and guidelines are designed to identify, assess, and mitigate risks across all areas of our business. By adhering to these principles, we align with regulatory standards while ensuring the bank's resilience and ability to achieve its strategic goals. Our commitment to prudent risk management allows us to balance growth opportunities with responsible decision-making, safeguarding both our assets and our reputation.
Risk Management Policies
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Risk Management Policy:
This policy establishes a comprehensive framework for identifying, assessing, mitigating, and monitoring risks across all banking operations. It aligns with Central Bank of Myanmar guidelines and industry best practices, ensuring the bank's stability, security, and compliance. The policy covers various risk types, including credit, market, liquidity, operational, legal, regulatory, reputational, strategic, and group/related party risks. It emphasizes clear roles and responsibilities, robust risk assessment, and ongoing monitoring to safeguard the bank's assets and reputation.
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Credit Risk Management Policy:
This policy outlines the principles and procedures for managing credit risk throughout the credit life cycle. It covers credit assessment, underwriting, approval, monitoring, and mitigation. The policy defines roles and responsibilities, establishes credit risk limits, and emphasizes compliance with regulatory requirements and industry best practices.
Risk Appetite Statements
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Enterprise Risk Appetite Statement:
This statement defines the bank's overall risk tolerance and appetite across all risk categories. It articulates the level of risk the bank is willing to accept to achieve its strategic goals, balancing growth opportunities with prudent risk management. The statement considers the bank's risk profile, strategic objectives, and regulatory requirements, guiding decision-making and risk-taking activities across the organization.
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Credit Risk Appetite Statement:
This statement focuses specifically on the bank's appetite for credit risk. It sets limits and thresholds for various credit risk metrics, such as loan delinquency rates, non-performing loan ratios, and concentration risk. The statement guides lending decisions, ensuring they align with the bank's overall risk appetite and strategic objectives.
Credit Risk Management Guidelines
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Credit Approval Authority and Guidelines:
This guideline establishes a structured process for evaluating and approving credit-related transactions. It defines authority levels for different committees and officers, ensuring clear decision-making and accountability. The guideline covers various credit products and emphasizes thorough assessments of creditworthiness, risk analysis, and compliance with policies.
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Collateral Management Guidelines:
These guidelines provide a framework for managing collateral assets that secure loans. They cover collateral evaluation, acceptance, documentation, monitoring, enforcement, and recovery. The guidelines aim to mitigate credit risk by ensuring collateral is sufficient and properly managed throughout the loan lifecycle.
Loan Underwriting Guidelines
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Business Loan Underwriting Guidelines:
These guidelines outline the procedures for evaluating and approving business loans. They cover assessing borrower eligibility, financial health, creditworthiness, collateral, and industry risk. The guidelines ensure consistent and prudent lending practices aligned with the bank's risk management objectives.
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Home Loan Underwriting Guidelines:
This policy details the process for underwriting home loans, including assessing borrower creditworthiness and property valuation. It provides criteria for different property types and loan-to-value ratios, ensuring responsible lending practices that comply with regulatory standards.
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Vehicle Loan Underwriting Guidelines:
These guidelines establish the criteria and procedures for approving car loans. They cover evaluating borrower creditworthiness, vehicle appraisal, and loan structuring, including loan-to-value ratios for new and used vehicles. The policy emphasizes thorough credit and collateral assessments to minimize risk.
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Cash-Secured Loan Underwriting Guidelines:
These guidelines outline the process for evaluating and approving loans secured by the borrower's cash deposits. They cover application submission, initial screening, documentation, loan approval, collateral management, and loan disbursement. The guidelines focus on safeguarding the bank's interests while providing borrowers access to financing.
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Low Amount Loan Underwriting Guidelines for Electronic Gadgets and Home Appliances:
This policy addresses high-risk, unsecured, short-tenor loans for financing electronics and appliances. It emphasizes rigorous credit analysis, income verification, and debt-to-income ratio assessment. Loan terms are tailored to borrower repayment capabilities, and higher interest rates reflect the increased risk.