Credit Approval and Limit Management Processes Survey

The RMA Market Risk survey on Credit Approval and Limit Management Processes in financial institutions was conducted in the fall of 2007. The study was developed by RMA's Market Risk Council, which is composed of senior-level industry practitioners from RMA member institutions.

The Web-based survey, completed by 41 institutions from North America, Europe, Asia, and Australia, is part of an ongoing, long-term effort by RMA to identify best practices and provide an ongoing benchmark to help members understand the evolving nature of their market and counterparty risk exposures. The results of this study will provide the basis for further exchanges of information.

This 61-question survey focused on practices for credit approval and credit limit setting processes for both trading and non-trading businesses. It also explored institutions' integration of Basel II methodologies into their approaches to credit and limit risk management.

The final report was issued in January 2008, to survey participants only. This comprehensive report contains detailed findings in its 140+ pages. It clearly describes the most prevalent methods, tools, and decision processes used to determine leading practices. You may view a synopsis of the  Credit Approval and Limit Management Processes summary (PDF) by clicking on the link. To purchase the complete survey, please contact Rosemarie Casler, 215-446-4081 or rcasler@rmahq.org. The cost of the report is $695 for an RMA member and $995 for a nonmember.

Institutions interested in participating in future market risk studies should contact Fran Garritt, Director, Market Risk and Securities Lending, at 215-446-4122 or fgarritt@rmahq.org.