Credit Risk Management based on Corporate Credit Practices

Abstract

As a requirement of BBA course at Stamford University Bangladesh, I have been carried out an internship report based on my working experience in BRAC Bank Limited. The subject matter of the report is Present Scenario of Credit Risk Management (Guidelines on Corporate Credit policy) in Bangladesh, A case study of the BRAC Bank Limited.

The ongoing development of contemporary risk management methods and the increased use of innovative financial products such as securitization and credit derivatives have brought about substantial changes in the business environment faced by credit institutions today. Especially in the field of lending, these changes and innovations are now forcing banks to adapt their in-house software systems and the relevant business processes to meet these new requirements.

Credit Risk Management is intended to assist practitioners in redesigning a bank’s systems and processes in the course of implementing the Basel II framework.

Throughout 2008 securitization, rating and validation, credit approval processes and management, as well as credit risk mitigation techniques. Credit risk management is based on developments in the banking sectors is meant to provide readers with best practices BRAC Bank Limited would be well advised to implement regardless of the emergence of new regulatory capital requirements. BRAC Bank Limited is to develop mutual understanding between regulatory authorities and banks with regard to the upcoming changes in banking. Credit Risk Management provides interesting reading as well as a basis for efficient discussions of the current changes in BRAC Bank Limited.

BRAC Bank Limited is a scheduled Commercial Bank in Bangladesh. It established in Bangladesh under the Banking Companies Act, 1991 and incorporated as Private Limited Company on May 20, 1999 under the Companies Act, 1994. Its operation started on July 4, 2001 with a vision to be the market leader through providing all sorts of support to people in term of promoting corporate and small entrepreneurs and individuals all over the Bangladesh.

The bank has been successful in holding its position as a progressive and dynamic financial institution in the country for a long period of time. It has now centralized all of its activities and has been acclaimed by the customers for its modern and innovative ideas and financial solution. It has been able to create a unique image for itself and significant solution in the banking sector proving its brand mantra “Committed to Cordial Service”.

Finally I got some findings from the analysis of the report that included financial position, credit policy of Bangladesh Bank and others policy of BBL.