Page 43 - GTBank Annual Report 2020 eBook

practices, including an effective system of internal give all stakeholders confidence in the resulting
control, to determine adequate expected credit financial information.
loss (ECL) allowances in accordance with IFRS 9
as well as the Bank’s stated policies and relevant The Bank’s Core Banking Application (BANKS)
supervisory guidance. and the Credit Risk Management rating system
are the key pillars of the IFRS 9 model. For the
Guaranty Trust Bank has instituted an effective purpose of estimating expected credit loss as
governance and control framework around the prescribed by the standard, the Bank has
IFRS 9 processes to ensure: that data integrity designed an ECL framework that generates data
and availability is upheld, expert judgement is from the banking system which is processed by
adopted in the design of the ECL models and the Credit Risk Management and Financial
finally the IFRS 9 processes are automated to Control Unit and transformed into IFRS 9
compliant figures.

In order to maintain a strong internal control around the IFRS 9 system, the table below details the entire
process regarding the IFRS 9 process and the various responsibilities.

S/N Stakeholders Task Responsibilities
1. Account Officers Gather information • Obtain qualitative information on the
on prospective prospective borrower through one on one
borrowers interviews, on-site visitations, credit bureau
checks, industry report etc.
• Obtain quantitative information (from
financial statement) and loan application
documentation from the prospective
borrower.
• Review risks inherent in the customer’s
business/industry based on the information
obtained
• If satisfactory, initiate customers’ application
on and determine customers’ credit rating
2. Relationship Manager Review • Review the financial and non-financial data
and other attached documentation for
accuracy and completeness
• Ensure that the purpose of the borrowing is
permissible under the Bank’s lending policy
and in line with the CBG credit guidelines.
3. Approving Authorities Approve • Review credit proposal for accuracy and
completeness
• Group Head • Approve the facility if within limit, otherwise
• Divisional shall recommend to the next higher lending
Head authority
• ED/MD
• Management
Credit
Committee
• Board Credit
Committee
4. Legal Department Review • Ensure loan agreement documentation are
documentation properly executed by the prospective
obligor
• Review collateral documentation for
accuracy and completeness Annual Report 2020

Guaranty Trust Bank Gambia Limited www.gtbankgambia.com 41