The Two most important documents needed in the credit creation exercises by Banks are the Credit Policy Guidelines and the Credit Procedure Manual. Answer the under listed questions in relation to the formulation and implementation of credit policy guidelines.

a. Define Credit Policy Guideline and Compare its features with the features of credit procedure manual.

b. List, Explain and show the importance of five (5) factors to consider when a bank is formulating a credit policy guidelines.

c. Why is the organogram of the credit division of a bank so crucial in the implementation of credit policy guidelines and credit policy procedure manual? Answer the question with practical illustrations.

d. Explain the following Three (3) issues that must be addressed in the credit procedure manual.

i. Set, establish and define the approval criteria.

ii. Set, establish and define stops and procedures for credit monitoring.

iii. Define steps and procedures to follow in the management of non-performing loans.