Credit Decisioning

Definition

Credit Decisioning (Also Credit Approval or Credit Granting Process) refers to the internal procedures followed by an organization in deciding to accept a certain Credit Risk, either as part of

• regular Credit Origination for banks and similar institutions where granting credit is part of the Business Model or
• incidentally, as part of engaging in other business which entails credit risk

Power to Accept Structures

Depending on the size and business model of the organization credit decisioning may involve a hierarchical structure of increasingly higher (senior) levels of approval

• Senior (central) management
• Regional management
• Branch management
• Individual officers

See Also

• Internal Governance