As of January 1st, national banks are required to set up a credit committee, formulate a corporate standards manual and adopt a new administrative structure specified by the Central Bank, the Gulf News reported Wednesday. National banks must also form a credit committee through a board resolution with a minimum of five members, and certain issues must be approved through a board resolution, the paper said.
The Central Bank specified that an administrative structure is the best safety net against risks, therefore banks are expected to take the required measures immediately, it added, quoting the Central Bank as saying "this committee would review, approve or submit recommendations in regard to loans that exceed the value of half of one percent of capital and reserves of the bank. Also, it will review all settlement and write-off cases" -- Albawaba.com
