Commercial Bank of Ceylon PLC

Annual Report 2018

Board Credit Committee Report

Composition of the Committee

Board Credit Committee (the BCC) consists of following members whose profiles are given on pages 14 to 19.

Board members

Mr K G D D Dheerasinghe* (Chairman)
Prof A K W Jayawardane* (Director)
Mr S Renganathan* (Managing Director/Chief Executive Officer)
Mr J Durairatnam
(Managing Director/Chief Executive Officer)
Retired w.e.f. – July 27, 2018
Mr S C U Manatunge
(Director/Chief Operating Officer)
Appointed w.e.f. – July 30, 2018

Secretary to the Committee

Mr R A P Rajapaksha
(Assistant Company Secretary)

*Independent Non-Executive Director

Attendance at Meetings

Name Eligible to attend/ Attended
Mr K G D D Dheerasinghe 12/12
Prof A K W Jayawardane 12/12
Mr S Renganathan 12/12
Mr J Durairatnam 07/05
Mr S C U Manatunge 05/05

The Committee held twelve (12) meetings during the year under review. The proceedings of the committee meetings were regularly reported to the Board of Directors

In a challenging environment, the Committee set the Lending Direction of the Bank for a prudent management of credit growth, while aiming at improved asset quality.

Charter of the Committee

The Committee assists the Board of Directors in effectively fulfilling its responsibilities relating to the Credit Direction, Credit Policy, and Lending Guidelines of the Bank in order to inculcate healthy lending standards and practices ensuring that relevant regulations are complied with.

The Committee is empowered to:

  • Review and consider changes proposed from time to time to the Credit Policy and the Lending Guidelines of the Bank.
  • Analyse and review the credit risk control measures in the lending areas, the pricing of lending proposals that credit proposals are within relevant internal policies and regulatory frameworks.
  • Evaluate, assess, and make recommendations on credit propositions which will be submitted to the Board of Directors.
  • Evaluate and recommend sector exposures and cross boarder exposures.
  • Monitor and evaluate special reports called for by the Board of Directors.
  • Set lending directions based on the current economic climate and risk appetite of the Bank.

Activities in 2018

The Committee approved credit proposals above a predetermined limit, recommended credit proposals and other credit reports intended for approval/perusal by the Board of Directors after careful scrutiny. These tasks were carried out by the Committee in line with the Bank’s lending policies and credit risk appetite to ensure that the lending portfolios were managed in line with the stipulated credit risk parameters set by the Board of Directors while achieving the Bank’s lending targets.

K G D D Dheerasinghe
Chairman – Board Credit Committee

February 22, 2019