Chairman: Rushan Khvesyuk, Member of the Board of Directors, Chairman of the Executive Board
The Credit Committee determines the Credit Policy of the Bank. The Credit Committee identifies possible risks assumed by the Bank for different types of transactions which are not within the competence of the Assets and Liabilities Directorate. It is also responsible for making final decisions on raising and use of funds within its authority as determined by the Executive Board of the Bank. The Credit Committee has the authority to make a final decision on approval or rejection of proposed transactions as well as to establish personal limits and client limits in accordance with its powers. Resolutions of the Credit Committee may be overruled only by the Executive Board of the Bank.
At its meetings the Credit Committee of the Bank passes resolutions on granting/extending:
- short-term, medium-term and long-term loans and guarantees;
- loans and guarantees of branches/offices of the Bank;
- loans and guarantees for periods and amounts;
- validity periods of letters of credit, sureties and other (including off-balance sheet) transactions involving credit risks.
The Credit Committee has the authority:
- To set limits for Bank clients on active operations;
- To set limits on Russian and foreign counterparties (including limits on a pre-settlement risk and settlement risk);
- To set country limits;
- To set provisions and determine a risk group for transactions involving credit risks;
- To approve internal regulatory documents relating to procedures for handling transactions containing credit and other risks (except those within the ALC competence), procedures for some crediting types, methodologies of counteragent borrowing capacity analysis and other regulatory documents relating to risk management;
- To take legal risks of raising and using funds;
- To set limits on specific credit and market instruments involving credit risks;
- To set limits on bond issuers and on risk bonds themselves;
- To approve procedures for banking operations involving credit risks and, when giving consent to specific transactions, approve procedures for banking operations involving operational risks inherent to given operations;
- To delegate its powers to the authorized persons with setting limits on active and passive banking operations;
- To delegate its powers to out-of-town branches and subsidiary banks, setting limits on the latter with respect to independent decision-making relating to loan transactions;
- To delegate to the Subcommittee of the Credit Committee for Capital Market Counterparties (consisting of at least 3 Bank officers) the power to decide on setting credit risk limits on counterparties (banks and financial companies) and setting limits on securities issuers within the authority established by the Credit Committee;
- To delegate to the Head of Risk Management the right to strike or reduce credit risk limits on counterparties (banks and financial companies) set by Credit Committee or Subcommittee for Capital Markets Counterparties, with subsequent furnishing of the information to the Bank's corresponding subdivisions as provided by regulations.
The Credit Committee of the Bank is appointed by a resolution of the Bank Executive Board in the number of at least 5 members with the right to vote. The Credit Committee is headed by the Chairman of the Credit Committee appointed by the Executive Board of the Bank. Members of the Credit Committee without the right to vote are appointed by an Order of the Chairman of the Bank Executive Board from among specialists and executives of the Bank. The Head of the Credit Risk Management department is invited to all meetings of the Credit Committee. All members of the Credit Committee with the right to vote have equal rights.
The Credit Committee is authorized to decide any matters submitted for consideration to it, if at the meeting of the committee there are present more than a half of the Credit Committee members with the right to vote. Resolutions are passed by a ¾ vote majority of the Credit Committee members with the right to vote being present at the meeting.
Meetings of the Credit Committee are generally held once a week. If necessary, additional meetings may be convened.
