Board Credit Committee Report

Composition of the Committee

The Board Credit Committee (BCC) consists of the following members:

- Mr. K.G.D.D. Dheerasinghe - Chairman

- Mr. M.P. Jayawardena

- Mr. W.M.R.S. Dias - Managing Director/CEO

Mrs. R.R. Dunuwille, the Company Secretary of the Bank, functions as the Secretary of the Committee.

Brief profiles of each member of the Committee are given under the profiles of Board of Directors.

Mandate and Role of the Committee

The BCC assists the Board of Directors in effectively fulfilling its responsibilities relating to the Credit Direction, Credit Policy and Lending Guidelines of the Bank in order to inculcate healthy lending standards and practices and ensure relevant regulations are complied with.

The Committee is empowered to:

• Review and consider changes proposed from time to time to the credit policy document and the Lending Guidelines of the Bank.
• Analyse and review the credit risk control measures in the lending area, the pricing of lending proposals and also ensure that credit proposals are within the regulatory framework of the Central Bank of Sri Lanka.
• Evaluate, assess and make recommendations on credit propositions submitted to the Board of Directors.
• Evaluate and recommend sector exposures and cross boarder exposures.
• Monitor Non-Performing Loans & Advances and recommend provision cover as required.
• Monitor and evaluate special reports called for by the Board of Directors.
• Set Lending Directions based on the current economic climate.

Committee Meetings

Twelve BCC meetings were held during the year under review. Attendance of the Committee members at meetings of BCC is given under the Coporate Governance section. Proceedings of the Committee meetings are regularly reported to the Board of Directors.

Methodology used by the Committee

The Committee will meet on a monthly basis and approve credit proposals above a pre-determined limit.

Credit proposals and other papers intended for approval by the Board of Directors are scrutinised to verify the overall credit worthiness and recommended accordingly with or without redress, as required.

Credit proposals are evaluated in the perspective of the Bank’s lending policies and appetite.

Closer monitoring is exercised on priority sectors and areas of higher interest.

The BCC operates in consultation with the scope of the Bank’s Credit Risk Management to ensure overall coherence between the Bank’s credit policies and management.

K.G.D.D. Dheerasinghe
Chairman - Board Credit Committee

Colombo
February 24, 2014