Credit Assessment Practice of a Commercial Bank in Bangladesh

Rana-Al- Mosharrafa

doi:doi:10.11648/j.ijefm.20130106.25

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Credit Assessment Practice of a Commercial Bank in Bangladesh

Rana-Al- Mosharrafa

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6)

Received: 29 October 2013 Published: 30 November 2013

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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.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6)
DOI	10.11648/j.ijefm.20130106.25
Page(s)	382-387
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Credit Assessment, Commercial Bank, Credit Management, Credit Risk Grading

References

[1]	Galbis, V. (1977). "Financial intermediation and economic growth in less developed countries: A theoretical approach". The Journal of Development Studies, 13 (2), pp 58-72.
[2]	Chaplin, G., Emblow, A. and Michael, I. (2000). "Banking system liquidity: developments and issues". Financial Stability Report (Bank of England), December issue, pp 93-112.
[3]	Allen, F. and Santomero, A. M. (1997). "The theory of financial intermediation". Journal of Banking and Finance, 21, pp 1461-1485.
[4]	Basel Committee on Banking Supervision. Principles for the management of credit risk – Consultative Paper – November, 1999.
[5]	Golin, J. (2005). "The Bank Credit Analysis Handbook". John Wiley & Sons (Asia) Pre Ltd.
[6]	Standard Chartered Bank. (2001). "Commercial loan to business- industry risk analysis". Journal 22, December.
[7]	Treacy, W. F. and Carey, S. M. (2000). "Credit risk rating system at large US banks". Journal of Banking and Finance, 24, pp 167-201.
[8]	Crouhy, M., Galai, D. and Mark, R. (2001). "Prototype risk rating system". Journal of Banking and Finance, 25(1), pp 47-95.
[9]	Ernst and Young. (2011). "Making strides in financial services management".
[10]	Kabir, G., Jahan, I., Chisty, M. H. and Hasin, M. A. A. (2010). "Credit risk assessment and evaluation system for industrial project". International Journal of Trade Economics and Finance, 1(4), pp 331-341.
[11]	Rose, P. S. and Hudgin, S. C. (2008). "Providing loans to businesses and consumers. In: Bank Management and Financial Services". The Mcgrow-Hill Companies, pp 513-541.

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Rana-Al- Mosharrafa. (2013). Credit Assessment Practice of a Commercial Bank in Bangladesh. International Journal of Economics, Finance and Management Sciences, 1(6), 382-387. https://doi.org/10.11648/j.ijefm.20130106.25

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ACS Style

Rana-Al- Mosharrafa. Credit Assessment Practice of a Commercial Bank in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2013, 1(6), 382-387. doi: 10.11648/j.ijefm.20130106.25

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AMA Style

Rana-Al- Mosharrafa. Credit Assessment Practice of a Commercial Bank in Bangladesh. Int J Econ Finance Manag Sci. 2013;1(6):382-387. doi: 10.11648/j.ijefm.20130106.25

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@article{10.11648/j.ijefm.20130106.25,
  author = {Rana-Al- Mosharrafa},
  title = {Credit Assessment Practice of a Commercial Bank in Bangladesh},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {6},
  pages = {382-387},
  doi = {10.11648/j.ijefm.20130106.25},
  url = {https://doi.org/10.11648/j.ijefm.20130106.25},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130106.25},
  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.},
 year = {2013}
}

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TY  - JOUR
T1  - Credit Assessment Practice of a Commercial Bank in Bangladesh
AU  - Rana-Al- Mosharrafa
Y1  - 2013/11/30
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130106.25
DO  - 10.11648/j.ijefm.20130106.25
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
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AB  - 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.
VL  - 1
IS  - 6
ER  -

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Author Information

Rana-Al- Mosharrafa

Department of Business Administration, Prime University, Dhaka, Bangladesh

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APA Style

Rana-Al- Mosharrafa. (2013). Credit Assessment Practice of a Commercial Bank in Bangladesh. International Journal of Economics, Finance and Management Sciences, 1(6), 382-387. https://doi.org/10.11648/j.ijefm.20130106.25

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ACS Style

Rana-Al- Mosharrafa. Credit Assessment Practice of a Commercial Bank in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2013, 1(6), 382-387. doi: 10.11648/j.ijefm.20130106.25

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AMA Style

Rana-Al- Mosharrafa. Credit Assessment Practice of a Commercial Bank in Bangladesh. Int J Econ Finance Manag Sci. 2013;1(6):382-387. doi: 10.11648/j.ijefm.20130106.25

Copy | Download

@article{10.11648/j.ijefm.20130106.25,
  author = {Rana-Al- Mosharrafa},
  title = {Credit Assessment Practice of a Commercial Bank in Bangladesh},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {6},
  pages = {382-387},
  doi = {10.11648/j.ijefm.20130106.25},
  url = {https://doi.org/10.11648/j.ijefm.20130106.25},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130106.25},
  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.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Credit Assessment Practice of a Commercial Bank in Bangladesh
AU  - Rana-Al- Mosharrafa
Y1  - 2013/11/30
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130106.25
DO  - 10.11648/j.ijefm.20130106.25
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 382
EP  - 387
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130106.25
AB  - 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.
VL  - 1
IS  - 6
ER  -

Copy | Download