Page 55 - GTBANK GAMBIA ANNUAL REPORT 2021

exposures are properly monitored, managed and (i) the 3 main inherent Bank’s risks–Credit, Market and
controlled. The Credit Risk Management Bank is Operational;
responsible for managing the credit exposures, which
arise as a result of the lending and investment activities (ii) additional core risks such as Reputation and
as well as other unfunded credit exposures that have Strategy risks
default probabilities such as contingent liabilities.
In addition to this, in compliance with the regulations of
Risk Management Methodology the Central Bank of The Gambia and also to align with
Basel II Capital Accord / best global practices, we are in

The Bank recognizes that it is in the business of managing the process of incorporating a strategic framework for
risks to derive optimal satisfaction for all stakeholders. It efficient measurement and management of the bank’s
has therefore, over the years detailed its approach to risk risks and capital. We have commenced the
management through various policies and procedures, implementation of Basel II recommended capital
which include the following: measurement approaches for the estimate of the bank’s
economic capital required to cope with unexpected
losses. We are also putting in place other qualitative and
• ERM Policy quantitative measures that will assist with enhancing risk
management processes and creating a platform for more
• Credit Policy Guide risk-adjusted decision-making.

• Human Resources Policy Manual Credit risk

• Standard Operating Procedures
Lending and other financial activities form the core
business of the Bank. The Bank recognizes this and has
• IT Policy
laid great emphasis on effective management of its
exposure to credit risk. The Bank defines credit risk as the
To ensure adherence to the policies and procedures,
several exception reports on customers and activities of risk of counterparty’s failure to meet the terms of any
the Bank are generated by the various audit control units lending contracts with the Bank or otherwise to perform
for management’s decision making. These include: as agreed. Credit risk arises anytime the Bank’s funds
are extended, committed, invested or otherwise
exposed through actual or implied contractual
• Monthly Management Profitability Reports (MPR) agreements.
for the marketing teams The Bank’s specific credit risk objectives, as contained in
the Credit Risk Management Framework, are:
• Monthly Operations Performance Reports(OPR)
for the support teams
• Maintenance of an efficient loan portfolio
• Quarterly Business Profitability Review
• Institutionalization of sound credit culture in the
• Annual Bank-wide performance appraisal Bank
systems
• Adoption of international best practices in credit
• Criticized Asset Committee Report risk management
Risk Management Overview
• Development of Credit Risk Management
The Bank operates a functional Risk Management Group professionals.
that manages all aspects of risk including threats and Each business unit is required to implement credit policies
opportunities. The risk management infrastructure and procedures in line with the credit approval authorities
therefore encompasses a comprehensive and integrated granted by the Board. Each business unit is responsible
approach to identifying, managing and reporting: for the quality and performance of its credit portfolio and

for monitoring and controlling all credit risks in its portfolio,
Annual Report 2021

www.gtbankgambia.com Guaranty Trust Bank Gambia Limited 55