Report on Credit Risk Management on National Bank Ltd
1.1 Objective of the study:
The objective of the assignment is to familiarize students with the real business situation, to compare them with the business theories & at last stage make a report on assign task.
The study has been undertaken with the following objectives:
To analysis the pros and cons of the conventional ideas about credit operation of a Bank.
To have better orientation on credit management activities specially credit policy and practices, credit appraisal, credit-processing steps, credit management, financing in various sector and recovery, loan classification method and practices of National Bank Limited (NBL).
To compare the existing credit policy of National bank limited with that of best Practices guideline given by Bangladesh Bank, the central bank of Bangladesh.
To identify and suggest scopes of improvement in credit management of NBL.
To get an overall idea about the performance of National Bank Ltd.
1.2 Background of the Assignment:
Last year Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four ‘Focus Groups’ were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produce a document that would be a basic risk management model for each of the five ‘core’ risk areas of banking. The five core risk areas are as follows-
a) Credit Risks;
b) Asset and Liability/Balance Sheet Risks;
c) Foreign Exchange Risks;
d) Internal Control and Compliance Risks; and
e) Money Laundering Risks. Bangladesh Bank in one of it’s circular (BRPD Circular no.17) advised the commercial banks of Bangladesh to put in place an effective
The objective of the assignment is to familiarize students with the real business situation, to compare them with the business theories & at last stage make a report on assign task.
The study has been undertaken with the following objectives:
To analysis the pros and cons of the conventional ideas about credit operation of a Bank.
To have better orientation on credit management activities specially credit policy and practices, credit appraisal, credit-processing steps, credit management, financing in various sector and recovery, loan classification method and practices of National Bank Limited (NBL).
To compare the existing credit policy of National bank limited with that of best Practices guideline given by Bangladesh Bank, the central bank of Bangladesh.
To identify and suggest scopes of improvement in credit management of NBL.
To get an overall idea about the performance of National Bank Ltd.
1.2 Background of the Assignment:
Last year Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four ‘Focus Groups’ were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produce a document that would be a basic risk management model for each of the five ‘core’ risk areas of banking. The five core risk areas are as follows-
a) Credit Risks;
b) Asset and Liability/Balance Sheet Risks;
c) Foreign Exchange Risks;
d) Internal Control and Compliance Risks; and
e) Money Laundering Risks. Bangladesh Bank in one of it’s circular (BRPD Circular no.17) advised the commercial banks of Bangladesh to put in place an effective