Credit Risk Management holds a positive relationship with credit monitoring, reliability and\nassurance factors. All these factors play vital role in the mitigation process of credit risks.\nRisk mitigation process starts from sourcing loan applications and the loan application goes\nthrough several screening process where reliability and assurance factors are very much\nimportant. Here, knowledge of practical world and product program are very much essential\nto identify risks associated with loan proposals. With the centralized banking system BRAC Bank deals with a systematic lending procedure which follows an straightforward policy. This\ntype of policy helps the analysts to analyze loan proposals very easily. But there are some\nweak points of this straightforward policy and guidelines. This procedure deny any type of\nexceptional proposals which may have better creditworthiness and repayment capacity.\nBusiness is lost in these situations which is treated as opportunity cost. In a word, credit risk\nmanagement is all about ensuring repayment capability of the customers who are provided\nloans and advances. Minimizing Credit Risk is subject to proper framework of risks and\njustification with historical trend and other assurance factors.
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