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    Abdullah Al Mahmud
    This document provides an introduction and overview of a case study report on the credit policies and risk management practices of Bank Asia Limited. The objectives of the report are to develop an understanding of Bank Asia's credit risk management, identify strengths and weaknesses in their credit approval and monitoring processes, and make recommendations. The report was produced as part of an internship requirement and focuses on Bank Asia's credit approval process, risk analysis techniques, and loan monitoring methods. It evaluates the lending process and risk management strategies and identifies areas for improvement.

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    1 Chapter

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    Abdullah Al Mahmud
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    This document provides an introduction and overview of a case study report on the credit policies and risk management practices of Bank Asia Limited. The objectives of the report are to develop an understanding of Bank Asia's credit risk management, identify strengths and weaknesses in their credit approval and monitoring processes, and make recommendations. The report was produced as part of an internship requirement and focuses on Bank Asia's credit approval process, risk analysis techniques, and loan monitoring methods. It evaluates the lending process and risk management strategies and identifies areas for improvement.

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    This document provides an introduction and overview of a case study report on the credit policies and risk management practices of Bank Asia Limited. The objectives of the report are to develop an understanding of Bank Asia's credit risk management, identify strengths and weaknesses in their credit approval and monitoring processes, and make recommendations. The report was produced as part of an internship requirement and focuses on Bank Asia's credit approval process, risk analysis techniques, and loan monitoring methods. It evaluates the lending process and risk management strategies and identifies areas for improvement.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    39 views4 pages

    1 Chapter

    Uploaded by

    Abdullah Al Mahmud
    This document provides an introduction and overview of a case study report on the credit policies and risk management practices of Bank Asia Limited. The objectives of the report are to develop an understanding of Bank Asia's credit risk management, identify strengths and weaknesses in their credit approval and monitoring processes, and make recommendations. The report was produced as part of an internship requirement and focuses on Bank Asia's credit approval process, risk analysis techniques, and loan monitoring methods. It evaluates the lending process and risk management strategies and identifies areas for improvement.

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    of 4

    Credit Policy and Risk Management A Case Study On Bank Asia Limited

    1.1 Introduction
    Bank is committed to provide high quality financial services/products to contribute to the
    growth of the country through stimulating trade and commerce, accelerating the pace of
    industrialization, boosting up export, creating employment opportunity for the youth,
    poverty alleviation, raising standard of living of limited income group and overall
    sustainable socio-economic development of the country. In achieving the aforesaid
    objectives of the Bank, Credit Operation of the Bank is of paramount importance as the
    greatest share of total revenue of the Bank is generated from it, maximum risk is centered
    in it and even the very existence of Bank depends on prudent management of its credit
    portfolio. The failure of a commercial Bank is usually associated with the problem in
    credit portfolio and its less often the result of shrinkage in the value of other assets. As
    such, credit portfolio not only features dominant in the assets structure of the Bank, it is
    crucially importance to the success of the Bank also.

    Bank can lend upto 84% of the total amount of its total time and demand liabilities. The
    rest 16% is kept as Statutory Liquidity Reserve (SLR) with Bangladesh Bank. But in
    practice banks do not lend the whole 84% and a certain portion is set to meet up the day-
    to-day banking operations and also meet up the liquidity requirement of the depositors.
    Bank can lend upto 15% of its paid up capital without the approval of Bangladesh Bank
    but above that level approval from Bangladesh Bank is required.

    1.2 Origin of the Report


    The internship report is a basic requirement for the BBA program. The proposed topic is
    “Credit Policy And Risk Management A Case Study On Bank Asia Limited”. The topic
    is assigned by Mr. Azharul Islam, Asst. Vice President & Sub Manager of the Corporate
    Branch and supervised by Dr. Laila Anjuman Ara assistance professor Southeast
    University.

    Alamgir Islam 2
    ID#2003010000097
    Credit Policy and Risk Management A Case Study On Bank Asia Limited

    1.3 Objectives of the Report


    The objectives of the study are as follows:

    Broad Objective
     The broad objective of the report is to have an overview on credit approval and
    risk management techniques adopted by Bank Asia.

    Specific Objectives
     To develop knowledge about credit risk management of Bank Asia.
     To identify the strengths and weaknesses of the credit approval and monitoring
    process in Bank Asia.
     To make recommendations regarding the Bank’s credit risk management
    activities.

    1.4 Scope of the Report


    This report consists of the writer’s observation and on the job experiences during the
    internship period in the credit department of Corporate Branch, Bank Asia. The report
    mainly emphasizes the sequential activities involved in credit approval process, analytical
    techniques used by Bank Asia for credit analysis as an integral part of the credit approval
    process. The report also focuses on the loan risk management techniques adopted by
    Bank Asia both in pre-sanction and post-sanction period of a credit. Finally the report
    incorporates an evaluation of the different aspects of the lending process and monitoring
    techniques and findings problems and makes some recommendations.

    Alamgir Islam 3
    ID#2003010000097
    Credit Policy and Risk Management A Case Study On Bank Asia Limited

    1.5 Methodology

    Sources of Data Collection


    Information used in this report has been collected from both primary and secondary
    sources. Primary data were collected mainly through the writer’s observation of the
    approval process and monitoring techniques, informal interviews of executives, officers
    and employees of Bank Asia.
    Majority of the information were collected from the secondary sources, which include
    books, publications, reading materials and various circulars and reporters published by
    Bank Asia.

    Data Analysis
    This is a descriptive report mainly aiming to depict the credit approval process and
    monitoring techniques of Bank Asia. The data gathered from both primary and secondary
    sources were arranged orderly to get a clear picture of the Bank Asia’s credit
    management policy regarding lending process and monitoring. The study includes both
    qualitative and quantitative analysis of loan approval process and monitoring tools. Based
    on the observational information writer also tries to evaluate and analyze the problems
    involved in various phases of the credit approval process and Risk management
    techniques.

    Presentation of Results and Recommendations


    Recommendations are made based on the critical evaluation of the different phases of
    process and techniques involved in credit approval and monitoring.

    1.6 Limitations of the Study


    There were certain limitations regarding the study that is summarized below:
     Deficiencies in data required for the study.
     Inaccurate or contradictory information.

    Alamgir Islam 4
    ID#2003010000097
    Credit Policy and Risk Management A Case Study On Bank Asia Limited

     Field practice varies with the standard practice that also created problem.
     Time provided for conducting the study is another important constraint.

    1.7 Report Preview


    This report is divided into two parts. These are:
     Part-A: The organization Part of Bank Asia Limited.
     Part-B: Job rotation during internship.
     Part-C: The Project Part “Credit Policy And Risk Management A Case On Bank
    Asia Limited”.
    The Part-A focuses on different services, management structure and practices, and
    financial conditions of Bank Asia. Part-B mainly focused on the job rotation during
    internship. Part-C, The Projected Part discusses credit functions of the Bank, products,
    policy, strategy, lending process, credit analysis using Financial Spread sheet Analysis,
    Lending Risk Analysis and quantitative and qualitative techniques of credit approval,
    evaluation of the various components of the lending process.

    Alamgir Islam 5
    ID#2003010000097

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