Initiated marketing of consumer credit



Initiated marketing of consumer credit: Examination report findings and Banking Supervision Department requirements

 

  • Consumer credit is a focus of the Banking Supervision Department’s work in recent years, from both consumer and prudential standpoints. Following an assessment of risk in the credit portfolio, the Banking Supervision Department has taken a number of steps—supervisory guidelines, monitoring and gathering of information, data analysis, examinations and requirements—which led to a slowdown in the growth rate of household credit.
  • These measures are mainly intended to ensure that the credit is provided to customers who have a reasonable ability to repay, and to prevent customers without such ability or those who are financially weaker due to taking out surplus credit from getting entangled in debts.
  • In the past year, the Banking Supervision Department has looked into the initiated marketing processes in the banking system, through examinations and other checks conducted by the bank’s internal auditors that it guided, found problems in some of the marketing processes, and required their rectification.
  • In the coming year, the issue of consumer credit will remain a major focus as fulfillment of the Department’s requirements is monitored and a directive on the matter is published.
  • This review provides details of the findings of the examinations the Department carried out, and sums up its requirements of the banking system in the area of initiated marketing of consumer credit.​