Credit Management Systems

Theoretical Framework with Graphical Representation 3.1 Primary handling: risk of exposures be by their nature uncertain and prudence of hazards relies on popular opinion of bumps and predictions about the future. Since uncertainty ordure adversely affect the profitability of the chamfer and it can also eat on the Liquidity. So, Jamuna brim circumscribed always tries to avoid any unlooked-for problem. credit peril is the risk or loss that whitethorn occur from the blow of any counter party to sort out required payments in accordance with agreed terms and conditions. This section lends the fund what the hope mobilizes through its various deposit accounts. This is the atomic number 42 function of patoiss, 2 generic function deposit militarization and creed creation. The study part of banks income is derived from credit and since the banks credit is clients fund, bank takes extreme caution in lending. The lawful core credit business organisation of bankin g is the profitable guidance of risk. The Risk Management of Jamuna Bank confine evolves identification, measurement and tyrannical risks to ensure that a. The Banks risk exposure is deep down the limits established by Board of Directors. b. The Banks risk taking decisions atomic number 18 in the line with the business schema and objectives set by the Board of Directors of the Bank as head as Bangladesh Bank guidelines. c.

The Banks risk taking decisions are explicit and make it. d. Sufficient working capital as a buffer is available to take risk. one of the nigh crucial sides of arising risk is the credit department. The following chart competency clear about that: The above circle makes us clear that JBLs ! major portion of risk incubus is carried by the credit section. So the proper credit management systems are required to avoid or minimize the credit risk which contains possibility of affecting the Banks profit. 3.2 Concepts of Credit Risk of JBL: It arises mainly from lending trade finance, leasing and treasury business. This can be described as potential loss arising from the...If you hope to thread a full essay, order it on our website: OrderEssay.net

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