Learning from CRM (01 January 2017 to )

I.

Form L
Form L is issued regarding large loan and reported Bangladesh Bank
Authority. In this procedure, the loan is reported along with funded and nonfunded exposure provided to the party. Form L need to be compiled and
submitted by 10th day of the month.

II.

Mitigation & Basis for Recommendation

Mitigation & Basis for Recommendation is a part of credit proposal which is
done by the branch sales and marketing officials. Usually, the Board, Credit
Committee and MD sir focus on this segment of the proposal. This segment
need to reflect the overall summary of the credit proposal and interprets the
risk factors, performance and indications to mitigate risk of non-payment and
basis of recommending.

III.

Notes
Notes are basically generated by CRM after receiving the credit proposal from
the branch. CRM puts its observation regarding the proposal on the notes
which are forwarded to Credit Committee for approval or rejection for further
processing. If the Credit Committee approves the Notes then Memos are
generated.

IV.

Memo
Memos are the generated after notes are approved by Credit Committee.
CRM personnel enrich the proposal with relevant data. Usually, the following
the areas are focused for Memo:

5 risk factors

Observation from CRM

Security position
Debt structure

Mitigation & Basis of

recommendation
Liability position
Presented proposal
Etc.