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1 . one particular Introduction

Financial services firms happen to be in the business of accepting risk. Primary aspires of any financial services company are accumulate and take care of risks for their customers and make a profit for its shareholders. We may define ‘Risks' as questions resulting in negative outcome, negative in relation to designed objective or expectations. In the financial arena, enterprise hazards can be extensively categorized since credit risk, operational risk, market risk and other risk. Credit risk is the most well-known and crucial risk which usually banks direct exposure and crucial of credit rating risk and credit risk management are increasing with time due to some factors like monetary crises and stagnation, organization bankruptcies, infraction of rules in organization accounting and audits, regarding off-balance linen derivatives, suffering and unstable values of collateral, funding more easily of small organizations, financial the positive effect and BIS risk-based capital requirements.

Credit risk can be explained as the risk of loss caused by the default of borrowers. Arrears occurs each time a borrower should not meet his financial obligations. Credit rating risk may alternatively be defined as raise the risk that a lender deteriorates in credit quality. This classification also includes the default from the borrower as the most extreme degeneration in credit quality. Credit rating risk is managed in both the transaction and stock portfolio levels. But , banks increasingly measure and manage the credit risk on a portfolio basis rather than on a loan-by-loan. In credit risk management banking institutions use numerous methods such as credit restrictions, taking guarantee, diversification, mortgage selling, syndicated loans, credit insurance, securitisation and credit derivatives. Credit rating risk is regarded as as a essential factor which should be managed by the banks and financial institutions.

Credit rating Risk Management process permits the banks to proactively manage loan portfolios in order to reduce losses and earn a satisfactory level of returning for investors. It includes recognition, measurement, complementing mitigations, guidance and control of the credit risk direct exposure. The purpose of credit rating risk management is usually to ensure that people taking the risk have full knowledge about that, the bank or perhaps financial institution is exposed to a great approved risk limit, the danger related decisions are in accordance with the business strategies, the payment for the risk is enough and sufficient capital support is there to buffer the risks. Credit Risikomanagement process involves Credit Investigation, Financial Evaluation, Credit Assessment, Credit rating Approval, Paperwork, Monitoring ( Follow up, Oversight and Control) and Credit rating Recovery methods.

Banks and Financial Institutions possess high exposure to credit risk and Pubali Bank was initially emerged inside the Banking circumstance of the then East Pakistan as East Mercantile Financial institution Limited in the initiative of some Beat alee business owners in the year late 1950s under Traditional bank Companies Work 1913. After independence of Bangladesh 39 years ago this Financial institution was nationalised as per policy of the Federal government and renamed as Pubali Bank. Your bank is pledge-bound to provide the customers as well as the community with utmost determination. The prime emphasis is upon efficiency, transparency, precision, and motivation with the spirit and conviction to excel in both value and graphic. In this respect, Pubali Bank has established its own credit policy which will guide these people in attaining their goal of maximum value addition through an effective and effecient credit risikomanagement.

1 . a couple of Objectives in the study

The objectives on this study will be as follows:

i) To have a sound comprehension of credit risk management system and procedure followed in the Pubali Bank Limited. ii) To get knowledge about the credit related operations and maintenance through this bank. iii) To analyze in greater detail the credit risk management procedure for the bank and to help make it recommendations if needed....

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Ahmed, S. Meters. H., (2004), Artha Rin Adalat Ain, 2003, initial edition, Fresh Warsi Publication Corporation, Bangladesh.

Bank for International Settlements Publications seen in http://www.bis.org/publ/pub_list.htm

Basel Committee on Banking Oversight, (2000), Guidelines for the Management of Credit Risk, found in www.bis.org

Bernanke, N. S., (2006), Modern Risk Management and Bank Supervision, present in www, protiviti. com

Bhargava, A., (2000), Credit Risk Management Systems in Banks, found in www.sas.com

Burns up, P., and Stanley, A., (2001), Taking care of Consumer Credit Risk, found in www.rmahq.org

Credit Coverage (2005) of Pubali Traditional bank Limited

Credit rating Policy (2005) of SouthEast Bank Limited

Chowdhury, D. R., (2002), A Text message Book about Banker is Advances, subsequent edition, Fair Corporation, Bangladesh

Counts, A. (1996), Provide us with Credit, Ny, Times Catalogs

Focus Group on Credit rating Risk Management, (2005), Credit Risikomanagement: Industry Guidelines, Managing Key Risks of economic Institutions, Bangladesh Bank found in www.bangladesh-bank.org

Kastle, K. Versus. D., (2004), Credit Risikomanagement: Gaining Dominance in the Global Banking Industry, found in www.skora.com

Glantz, Meters

Pirok, E. R. (1994), Commercial Loan Analysis: Concepts and Tips for Credit analysts and Loan providers, Chicago, Probus Pub Corp.

Saunders, A. (1999), Credit Risk Measurement: New Approaches to Value-at-risk and other Paradigms, New york city, Willy

The Federal Reserve Bank of NY: The Credit Method: A Guide to get Small Business Owners present in www.ny.frb.org/pihome/addpub/credit.html


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