Preview

leaders are born not made

Powerful Essays
Open Document
Open Document
8849 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
leaders are born not made
RUAHA UNIVERSITY COLLEGE (RUCO) (A constituent college of the St. Augustine University of Tanzania)

FACULTY OF BUSINESS AND MANAGEMENT SCIENCE MASTER OF BUSSINESS ADMINISTRATION (MBA) COURSE: BUSINESS RESEARCH METHODOLOGY
COURCE CODE: RMB 604
NATURE OF ASSIGNMENT: INDIVIDUAL ASSIGNMENT
COURSE INSTRUCTOR: DR. CHALU.
NAME OF STUDENT MOLLEL ALLEN REG ; 036/MBA/T/2012
SUBMISSION DATE 10 OCTOBER 2013

TOPIC; THE ASSESMENT OF CREDIT RISK MANAGEMENT EFFECTIVENESS IN COMMERCIAL BANK IN TANZANIA –A CASE OF CRDB –BANK IRINGA MUNICIPALITY CHAPTER ONE
INTRODUCTION

1.1 Background of the problem:
According to Lopez ,(1999) he defined credit risks as the degree of value fluctuations in debt instruments and the derivatives due to changes in the underlying credit quality of borrowers and counterparts also the credit risk model are used to determine risk–adjusted and regulatory capital requirements. However the development of the corresponding regulatory standards for credit risk models is much more challenging than for the markets risks model.
Also according to Bhattacharya, (1996) Commercial banks are the ones which facing credit risk, other are lender to business, and even individual themselves. Financial institutions particular commercial banks are the one which come across credit risk. The only solution necessary for setting banking status is credit risk management and control. Global financial crisis which has its roots on mortgage are reason for banks collapse, this force automatically banks to gain enough confidence and reset their policy and strategies over credit management. Not only that but also the

You May Also Find These Documents Helpful

  • Good Essays

    Slavery began in America when the first African slaves were brought to Virginia in the 16th century. Slavery assisted in the formation, growth, and development of the United States both the north and the south. It had a huge impact on the growth of an emerging nation, increasing economic growth, urbanization, and industrialization of the United States. During the first half of the 19th century, criticism and defenses of slavery evolved, but many slave owners disagreed that slaves should be freed and given the same rights of white men. The disagreements about whether slaves should be considered equal to white men created more conflict between the North and South in the 19th century, causing the Civil war to be an irrepressible conflict.…

    • 858 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Global Banking Crisis

    • 734 Words
    • 3 Pages

    After so much worldwide financial turmoil, learning the right lessons from the global banking crisis is a challenge for the advanced economies and the larger emerging economies whose policies will determine the global financial system over the next several years. The most difficult challenge is not only learning, but applying the lessons learned from the crisis, which proves to be very difficult for all the affected nations and their people whom must live with the consequences. There are various lessons that were learned from the chaotic and disastrous global banking crisis. One of the first lessons that banks discovered is that they must establish an effective governance structure which includes policies dealing with credit risk and specifically with risk tolerance levels. This goes hand in hand with the fact that it is clearly realized from this crisis that credit rating agencies need to reclassify their models used to evaluate cryptic credit risk created in both Mortgage-Backed Securities (MBS) and Collateralized Debt Obligations (CDOs). (Eun & Resnick) Furthermore, the banking crisis has taught borrowers that they must be cautious of placing their faith in its entirety on credit ratings and therefore must question any discrepancies ahead of time. Another insight that was derived from the crisis is the fact that banks must work and build on credit analyses from the bottom up. Banks must ensure that they will be able to resist a severe market hence their liquidity positions, credit reserves and capital bases must be verified. The global banking crisis has also taught us that bankers do not examine credit risk as strictly when they are only acting as mortgage originators and then pass it on to MBS investors instead of holding it themselves. (Eun & Resnick) Bankers seem…

    • 734 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Traditional ways to measure credit risk has revealed some drawbacks using classic processes. To be more specific, quantity of the loan is not enough to measure whole credit risk, we should also consider the counterparty’s credit standing. Also, it is not available for measuring the cumulative credit risk over financial trades. (Barbara Casu, Claudia Girardone & Philip Molyneux, 2006). It is indicates that investment banks should explore more precisely approach to measure and manage credit risk. This essay will analysis the accurate ways measuring and managing credit risk and discuss the extent to which the…

    • 1233 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Henry Kissinger once said that "The task of the leader is to get his people from where…

    • 1276 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    To manage credit risk banks can employ various strategies. To start with they try to predict the consumers’ behaviour before the loan agreement is made. By using stringent vetting processes to sort out and deny borrowing to those most likely to default on their loan they can protect themselves from the majority of credit risk. This process is done in the form of credit…

    • 2527 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Leaders Are Born or Made?

    • 299 Words
    • 2 Pages

    For me, both leaders are sort of born and they can also be made, it really depends on how you define leadership. Some people believe that leaders are born with the necessary qualities that make them successful as a leader. While others believe that leadership, like many other similar characteristics, can be learned and developed through life. According to the “Great man theory” leaders are born based on the principle that leaders are exceptional people, born with innate qualities are destined to lead. Vital portion of leadership are really core parts of individuality. They say that leadership is an inborn capability, but the situation is not always like that, sometimes when a person belongs to a respective and powerful family the authority is just being passed down. The dilemma with the great man theory was not all inherited leader where competent to lead. Yes, they have all the traits and qualities of being a leader potential but that doesn’t guarantee that they are going to be an effective leader. Leadership is a bequest, it’s like a talent it may be evident but perhaps it should be enhanced. Anybody can also be a leader whether you have that natural ability or not. Leaders can be made, it’s just a matter of developing one’s ability and fostering is the key. We are all born with distinctive strengths to become great leaders and they are within us. Sometimes when we are faced with predicaments that are compelling, the leader in us comes out right before you know it. With proper pragmatic training, it is possible for people to learn how to be a leader, and I believe that almost anyone could be a leader if they chose to and would willingly pay the price of being…

    • 299 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Gavin

    • 8767 Words
    • 36 Pages

    In project one, we concentrate on the performance of each bank and how they reacted with financial crisis. In project two, interest rate risk and off-balance-sheet risk exposures will be examined using different models…

    • 8767 Words
    • 36 Pages
    Good Essays
  • Powerful Essays

    Role of Bank Capital

    • 1381 Words
    • 6 Pages

    Credit risk is the risk that an obligator will not make future interest payments or principle repayments when due and is the main risk faced by banks, considering how large global financial markets are and the proportion of transactions that may be at risk. Credit risk tends to vary with the business cycle as initial rapid expansion results in falling spreads, and a decline in credit widening spreads with banks being hit by large loses as the spread widens.…

    • 1381 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    The South Indian Bank is one of the earliest banks in South India. It has become a major player in banking. It has its operations all over the country and promises to deliver the experience of next generation banking. The business of SIB is growing at higher rate both in respect of deposits and advances. SIB offers a variety of loans for different categories of people. It extends two types of credit facilities to their corporate customers. The first type known as Working capital finance is extended to meet the day to day short term operational requirements of the borrower. The second type of finance in the form of short term and medium term loans is provided to customers to meet the long term capital requirements for setting up the new project, expansion and diversification of the existing project and so on. It is the funds of depositor‟s i.e., the general public that are mobilized by means of advances. Thus it is extremely important for the bank to assess the risk associated with the credit. The process of credit rating begins when the customer approaches the bank and applies for credit. The SIB has a special department called the Integrated Risk Management Department (IRMD).The branch forwards the application to the Regional Office which initially conduct a rating and sent for evaluation to IRMD. Based on the parameters set by the Board of SIB, the IRMD analyses the details and rates the prospective customer. If the bank finds the customer eligible, the loan is sanctioned. The South Indian Bank has a comprehensive credit management policy which was tailored to fall in line with the banking guidelines issued by the Reserve Bank of India. The study is based on the credit rating process of loans in South Indian Bank. Finance today, holds the key to all human activity. It consists of raising, providing and managing of all money, capital or fund of any type to be…

    • 6430 Words
    • 26 Pages
    Better Essays
  • Best Essays

    Research Proposal Sample

    • 2209 Words
    • 9 Pages

    Saunders, M., Lewis, P., & Thornhill, A. (2007), Research Methods for Business Students (4th ed.) Harlow, England: FT Prentice Hall…

    • 2209 Words
    • 9 Pages
    Best Essays
  • Better Essays

    Are Leaders Born or Made?

    • 1564 Words
    • 7 Pages

    People have debated whether leaders are born or made for centuries. However, I am absolutely convinced that good leaders are made than born. If you have the desire and willpower, you can become an effective leader. “Good leaders can develop through a never ending process of self-study, education, training and experience” (Jago, 1982). To inspire workers into higher levels of teamwork, there are certain things a leader must be, know, and, do. These do not come naturally, but are acquired through continual work and study. Good leaders are continually working and studying to improve their leadership skills; they are NOT resting on their laurels.…

    • 1564 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Asset Liability Mgmnt

    • 1354 Words
    • 6 Pages

    ABSTRACT: In banking, ASSET AND LIABILITY MANAGEMENT (often abbreviated ALM) is the practice of managing risks that arise due to mismatches between the assets and liabilities (debts and assets) of the bank. This can also be seen in insurance. Asset liability management (ALM) is a strategic management tool to manage interest rate risk and liquidity risk faced by banks, other financial services companies and corporations. Asset-liability management basically refers to the process by which an institution manages its balance sheet in order to allow for alternative interest rate and liquidity scenarios. Banks and other financial institutions provide services which expose them to various kinds of risks like credit risk, interest risk, and liquidity risk. Asset liability management is an approach that provides institutions with protection that makes such risk acceptable.…

    • 1354 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Risk-Based Lending

    • 19787 Words
    • 80 Pages

    Grading systems measure credit risk and differentiate individual credits and groups of credits by the risk they pose…

    • 19787 Words
    • 80 Pages
    Powerful Essays
  • Powerful Essays

    Leaders Are Born Not Made

    • 1534 Words
    • 7 Pages

    The OSI Model's Seven Layers Defined and Functions ExplainedArticle ID: 103884This article was previously published under Q103884Expand all | Collapse allOn This Page * SUMMARY * PHYSICAL LAYER * DATA LINK LAYER * NETWORK LAYER * Communications Subnet * TRANSPORT LAYER * End-to-end layers * SESSION LAYER * PRESENTATION LAYER * APPLICATION LAYER * Properties * Give FeedbackSUMMARYThe Open Systems Interconnect (OSI) model has seven layers. This article describes and explains them, beginning with the 'lowest' in the hierarchy (the physical) and proceeding to the 'highest' (the application). The layers are stacked this way: * Application * Presentation * Session * Transport * Network * Data Link * PhysicalPHYSICAL LAYERThe physical layer, the lowest layer of the OSI model, is concerned with the transmission and reception of the unstructured raw bit stream over a physical medium. It describes the electrical/optical, mechanical, and functional interfaces to the physical medium, and carries the signals for all of the higher layers. It provides: * Data encoding: modifies the simple digital signal pattern (1s and 0s) used by the PC to better accommodate the characteristics of the physical medium, and to aid in bit and frame synchronization. It determines:…

    • 1534 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Usually in a typical sibling scenario, the oldest one tends to be the role model, the boss, or even the leader. In my case, I had to switch roles with my older brother. About four years, my brother had been hit by a car. Following the accident, he had severe brain injuries and fell into a coma for about two weeks. Thankfully, he managed to make it through the storm and face the real world again. However, his life perspective altered. It was difficult for him to stand upright for at least a minute. His speech had been somewhat impaired. Most heartbreaking of all, he forgot many of his life memories that he shared with my family and I for many cherishing year…

    • 632 Words
    • 3 Pages
    Good Essays