Survey Questionnaire on Credit Risk Management in Banks

Date and Time of Interview Interviewer Name: Organization Name: Respondent Department:

1. In making lending decisions what type risk grading mechanism you are following now? .. 2. What type of risk you are considering in the credit risk grading? a. Financial Risk b. Business/Industry Risk c. Management Risk d. Security Risk e. Relationship Risk f. Others (Please Specify). 3. Do you consider Environment, Social and Governance Risk factors while making lending decisions? a. Yes b. No 4. If you do, then how do you consider it? Qualitatively Quantitatively 5. Do you CONSIDER the following ESG Risk Issues in Loan Processing? Almost Always 5 ENVIRONMENTAL ISSUES
Compliance with environmental , e.g Environmental Clearance Certificate Project location vulnerability from environmental perspectives Protection against climate change impacts such as cyclones, storm , floods and droughts Commitment of the client for environmental management Provision for solid waste management Provision for wastewater management such as Effluent Treatment Plan (EFT): industries, sewerage Provision for handling storage and management of hazardous materials and chemicals Air emission prevention and control measures Noise pollution control measures Fire or explosive prevention and control measures Provision for genetic resource management ( for pharmaceutical industries) Provision for Bioethics management (for pharmaceutical industries ) Appropriate measures to control dust pollution Provision for odour prevention and control Environmental requirement of the buyer or importer Periodic environmental monitoring arrangements Energy and resource consumption Environmental impacts associated with products and services Potential for new regulations to have negative impact on product or service acceptability Potential new markets for environmental services and environmentally friendly products

Sometimes 4

Every Once In a While 3

Rarely 2

Never 1

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

SOCIAL ISSUES Workshop health, safety and working conditions Equal opportunity in employment The use of forced or child labor Involvement of employees in management Freedom of association in union/society activities Profit sharing, performance bonuses and stock option Caring activities or the employee family and children Training and development of human resources Handling of transfer and dismissal Preparation for retirement of employees Community relations Charitable donations

5 5 5 5 5 5 5 5 5 5 5 5

4 4 4 4 4 4 4 4 4 4 4 4

3 3 3 3 3 3 3 3 3 3 3 3

2 2 2 2 2 2 2 2 2 2 2 2

1 1 1 1 1 1 1 1 1 1 1 1

Governance Issues Board size , structure and composition Frequency and Quality of Board Meeting Meeting with stakeholders and proper records of minutes Disclosure of performance through financial statements Disclosure of corporate social responsibility (CSR) activities Audit Committee Structure and independence of auditors 5 5 5 5 5 5 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1

6. Do you think the ESG factors bring new business opportunities? Yes No 7. If yes what are those opportunities? (you may please tick more than one) a. New Product or service development b. Reaching wider customer segment c. Collaboration with national , international organization d. Institutional funding and donations e. Better credit risk management f. Others (Please Specify). 8. Is there any other risk, in addition to ESG risk factors mentioned above, that should be considered in CRM? Please Specify..

Thank you very much for your warm cooperation in providing the above information. You have already contributed positively toward successful completion of the project.