There is considerable pressure on banks today to improve their risk management. Some of this comes from the increasingly competitive local business environment, some of it from the local regulator, and some of it from the globalisation of markets bringing with it new competitors and regulators. Hovering in the background is the Basel II Accord, which can be viewed as adding to the pressure for change, or alternatively as aiding banks in the change process through a codification to some degree of good credit risk management practices.
From our experience in working with banks in emerging markets to enhance their credit risk management, some of the key hurdles to developing an...
