Presentation on theme: "Proposed Organizational Set-up to Implement BRR & FRR in a Cooperative"— Presentation transcript:
1 Proposed Organizational Set-up to Implement BRR & FRR in a Cooperative
2 Guidelines on the Organizational Aspect 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.
3 Guidelines……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 borrower’s risk rating.
4 Sources of Information Application form and other submitted documentsYour own initial interview formCredit investigation report / Appraisal reportProject visit / employees & workersCustomers and suppliersIndustry associationsLessors, neighbors, barangay officials/employeesPersonal observationCoop’s own records
5 Topics for an Interview (5 C’s of Credit) Sample questions indicative of:a. Characterb. Creditc. Capitald. Capacitye. Condition