Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 5

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 5
---
review
of
potential
borrowers
and through
active
asset quality
administration. 
Business
activities
that
expose
us to
credit
risk are
managed
within
the
Board
of Director’s
Risk Management policy, 
and the Credit Risk Tolerance
Limits policy,
which establishes
limits
that
consider
factors
such
as maintainin
g
a prudent
balance 
of risk-taking
across
diversified
risk types
and business
units,
compliance
with regulator
y
guidance,
and
controlling
the
exposure 
to lower
credit
quality
assets. 
We maintain
comprehensive
credit policies
for all lines of
business in order
to mitigate credit
risk. Our credit
policies
are 
approved by
our Board
of Directors.
These policies set
forth,
among
other
things, 
the objectives, scope and
responsibilities of the 
credit
management cycle.
Our
internal
written
procedures
establish 
underwriting
standards
and
procedures
for
monitoring
and 
evaluating
loan
portfolio
quality
and
require
prompt
identificatio
n
and
quantificatio
n
of
asset
quality
deterioration
or
potential 
loss 
to provide for the adequacy of the allowance for credit losses. These written procedures establish various approval and lending 
limit levels,
ranging

from
bank
branch
or departmen
t
officers
to managerial
and senior
management
levels.
Approval
levels
are
primarily
determined
by the
amount, type
of loan and
risk characteristics
of the credit
facility. 
Our
credit
policies
and
procedures
establish
documentation
requirements
for
each
loan
and
related
collateral
type, 
when
applicable,
during
the
underwriting,
closing
and
monitoring
phases.
For
commercial
and
construction
loans,
during
the 
initial
loan
underwriting
process,
the
credit
policies
require,
at
a
minimum,
historical
financial
statements
or
tax
returns
of
the 
borrower,
an analysis
of financial
information
contained
in
a
credit
approval
package,
a
risk
rating
d