Purpose: Describe the main characteristics and elements of credit risk management (business model and credit risk profile, organisation and functions involved in credit risk management, risk management reporting).

Scope of application: The template is mandatory for all banks.

Content: Qualitative information.

Frequency: Annual.

Format: Flexible.

Banks must describe their risk management objectives and policies for credit risk, focusing in particular on:

(a) How the business model translates into the components of the bank’s credit risk profile

(b) Criteria and approach used for defining credit risk management policy and for setting credit risk limits

(c) Structure and organisation of the credit risk management and control function

(d) Relationships between the credit risk management, risk control, compliance and internal audit functions