Brac Bank LTD A case Study on Jamal khan Branch 1 Internshi reort on! Credit Risk Management Of Brac Bank LTD A case Study on Jamal khan Branch (This Internship Report Is Submitted For the Partial Fulfillment of the Degree of Master of Business of Administration with a Major in Finane! Super"ised B# Lecturer Faculty of Business studies Prepared B# Name: Student I: !ro"ram: #a$or in finance Su%mission ate:
ii Letter of Transmittal ate: &'()1(&)1* +o +he Super,isor Lecturer Faculty of Business studies Su"! !rayer for su%mission of internship report on -redit Risk #ana"ement of Brac Bank L+. . #adam/ 0ere is the Internship Report I am re1uired to su%mit to he faculty as a part of the completion of R#BA pro"ram. #y topic is e,aluation of asset lia%ility mana"ement of a commercial %ank. I choose Brac Bank Limited/ Jamal khan Branch. For doin" so/ I had to collect data from ,arious sections of the said %ranch Brac Bank Ltd/ such as/ -redit epartment/ Forei"n +rade epartment etc. I hope that the information placed throu"h this Report 2ill pro,ide you enou"h information a%out Brac Bank acti,ities. I am al2ays a,aila%le to discuss the same 2ith you to %e a%reast of the time. Sincerely yours 3.........................4 Name: Student I: !ro"ram: #a$or in finance iii Ackno#ledgement I am ,ery much "rateful to Almi"hty for "i,in" me the scope ha,in" a de"ree in Business 5ducation and to prepare this term paper. I pay "ratitude to the Super,isor of my report/ +he Super,isor. / Lecturer epartment of finance. Faculty of Business studies/ 6I+S/ -hitta"in". I also pay honor to the teachers for their contri%ution. I am also "rateful to 0onora%le -hief 57ecuti,e Officer of Brac Bank Ltd. Jamal I am also "rateful to 0onora%le -hief 57ecuti,e Officer of Brac Bank Ltd. Jamal 8han %ranch 2ho has "i,en me the !ractical 8no2led"e a%out the %ankin" operations. 8han %ranch 2ho has "i,en me the !ractical 8no2led"e a%out the %ankin" operations. i, $%ecuti&e summary Brac Bank mainly deals 2ith lar"e corporate customers seekin" lar"e loan facilities. But for %anks/ loans are the lar"est and most o%,ious source of risk. 57perience in recent years has sho2n that a%sence of proper mana"ement of such risk has resulted in si"nificant losses or e,en cripplin" losses for a num%er of %ankin" institutions. 5ffecti,e credit risk mana"ement is therefore ,ital to ensure that a %ankin" institution9s credit acti,ities are conducted in a prudent manner and the risk of potential %ank failures reduced. So/ appropriate policies/ procedures and systems should %e implemented at each financial institution for identifyin"/ measurin"/ monitorin" and controllin" credit risk effecti,ely. BBL follo2s a centrali:ed approach in e7tendin" its credit. Relationship #ana"ers 3R#4 %rin"s in ne2 customers and prepares credit proposals for them. +he proposal packa"e is then sent to the -redit Risk #ana"ement 3-R#4 department analy:es the risk miti"atin" factors and sends the proposal 2ith recommendation to the credit appro,in" authority. -redit appro,in" authority appro,es the proposal or denies it and sends the same to -R# a"ain. BBL has a 2ritten credit policy manual. It fully complies 2ith Ban"ladesh Bank ;uidelines. BBL does not e7tend credit to a %usiness/ if it does not understand the %usiness. +he process of credit assessment is also "uided %y the central %ank directi,es. A thorou"h credit and risk assessment is conducted prior to the "rantin" of loans/ and at least annually thereafter for all facilities. +he loan structure is matched 2ith the cash con,ersion cycle of the %usiness and appropriate security is taken as collateral. In short/ credits are not e7tended relyin" on $ust the %orro2er9s or sponsorin" units reputation in Brac Bank Limited. ,