Credit Assessment Practice of a Commercial Bank in Bangladesh
International Journal of Economics, Finance and Management Sciences
Volume 1, Issue 6, December 2013, Pages: 382-387
Received: Oct. 29, 2013; Published: Nov. 30, 2013
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Author
Rana-Al- Mosharrafa, Department of Business Administration, Prime University, Dhaka, Bangladesh
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Abstract
The banks act as an intermediary to mobilize the excess fund of surplus sectors to provide necessary finance, to those sectors, which are needed to promote for the sound development of the economy. Credit management is a dynamic field where a certain standard of long-range planning is needed to allocate the fund in diverse field and to minimize the risk and maximizing the return on the invested fund. Credit risk grading technique is an important tool for credit management as it helps a bank to understand various dimensions of risk involved in different credit transactions. The main purpose of this study is to make possible suggestions to improve present credit situation prevailing in the banking sector in Bangladesh by analyzing a reputed commercial bank’s credit activity. The study was undertaken to get an in depth idea of the credit appraisal system of a commercial bank and understand its importance. Beside this a case study of a well known commercial bank’s credit appraisal and risk grading technique were also revealed to identify some problems as well as propose some suggestions in this regard. From the study it was evident that the bank, maintained standard credit management policy in the changing market situation to establish a set of credit management policy.
Keywords
Credit Assessment, Commercial Bank, Credit Management, Credit Risk Grading
To cite this article
Rana-Al- Mosharrafa, Credit Assessment Practice of a Commercial Bank in Bangladesh, International Journal of Economics, Finance and Management Sciences. Vol. 1, No. 6, 2013, pp. 382-387. doi: 10.11648/j.ijefm.20130106.25
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