The local banking industry has chronic default issues due to many reasons. No banks want to face this risk that can jeopardize their existence. You are a consultant and hired by a newly chartered bank to write its policies regarding loan approval and disbursement. The policy book must cover the following contents in detail so that it will drastically reduce the credit risk: Loan approval authority with designation and allowed amount Procedure and parameters of loan department Requirements of document Different types of loan and timeline of approval Review standard for loans and best practices Acceptable Collateral standard Loan delinquency action plan For all the policy suggestions, you must explain the reasoning how that will reduce default