look at risk assessment and risk management. Financial institutions are used
to doing in-depth evaluations in lending, data processing, and information
technology (IT) areas, where a breach could cause serious damage. How-
ever, risk must also be addressed from every vulnerable location, whether in
operations, administration, the back office, or in the branch.
This segment of the program focuses on training staff to identify and
communicate the many types of risks that most often occur in the bank
branch(es) and to handle those incidents in a safe and sure manner.
Special Courses for Credit Department Personnel
Fair Lending Act Fair lending is an important RF banking requirement as
well as an important government regulation. It must be taken seriously by
all, and it must be recognized and practiced by bank management and staff.
The bank’s staff members are trained that the principle of fair lending, deal-
ing with all people graciously and respectfully regardless of their skin color,
affluence, religion, national origin,gender, or language, is not only good
service but demonstrates compliance with the laws of the land and with
Shari’aa, which makes discrimination one of the most serious offenses
against our Creator.
Staff is trained to understand that it is not enough to perform sophisti-
cated credit analysis and generate glossy and detailed financial analysis re-
ports. The credit analysis staff is trained to gauge the character of the
customer, his/her background and training as depicted by their personal his-
tory (a resume of the applicant is required by the bank credit department as
part of a credit application package), the nature of the business, how the
business is managed, and the detailed background of the managers in
charge. Another important aspect of the training sheds light on the impor-
tance of visiting the customer’s place of business and facilities—including
the questions they should ask and the clues they should look for. Officers of
the credit department and staff are trained to identify credit risks in such
important business activities as marketing, business planning, environmen-
tal protection, governmental regulatory compliance, competitive analysis,
operations management, inventory controls, safety practices, employee re-
lations, and sales management.
Predatory and Subprime Lending RF banking is a brand of banking that does
not even consider being involved in the business of predatory^6 or subprime
lending,^7 because these businesses are against the Judeo-Christian-Islamic
moral and ethical values of the RF bank. The staff is trained that they are not
in business to make money on commissions from selling loans to borrowers
336 THE ART OF ISLAMIC BANKING AND FINANCE