Presentation on theme: "Proposed Organizational Set-up to Implement BRR & FRR in a Cooperative."— Presentation transcript:
Proposed Organizational Set-up to Implement BRR & FRR in a Cooperative
Implementation of the BRR should be as objective as possible. Personnel who will prepare the BRR should not be part of the approval process of a loan. Preferably, the person preparing the BRR should be performing a support function rather than a line function. Example: those doing audit functions, credit policy supervision, those equivalent to the function of compliance officer as in a bank.
Raters should be personnel without contact with the client. BRR shall be based on documents submitted by the client or generated by uninterested parties to the loan. There should be a clear appeal process in place to pinpoint who would referee between the rater and the AO esp. if the BRR is used in pricing a loan. Succeeding BRRs shall be done in the same way – detached from staff who are directly involved in monitoring the loan. AOs could prepare the BRR for as long as there is a Group / person who will audit and vouch that the rating is a fair reflection of the borrowers risk rating.
Application form and other submitted documents Your own initial interview form Credit investigation report / Appraisal report Project visit / employees & workers Customers and suppliers Industry associations Lessors, neighbors, barangay officials/employees Personal observation Coops own records
Sample questions indicative of: a. Character b. Credit c. Capital d. Capacity e. Condition