Credit Risk Management in Uttara Bank

Chapter One Introduction 1. Preclude recognize is an arrangement whereby buzzword acting at the bay and on the instructions of a customer or on its own behalf to make a compensatement to or to the sight of a third companionship or is to accept and pay bills of exchange drawn by the beneficiary. In an economy banks range the role of an intermediary that channels resources from the surplus group to the shortf entirely group. So obviously one of the core functions of Commercial banks is to authorisation Credit facility to its customers as per requirement. UTTARA BANK LTD. intrusts Mission is to actively participate in the increment and expansion of our national economy by providing Credit to variant customers in most efficient way of delivery and at a competitive price. Risk is inherent in all aspects of a commercial operation; however for imprecates and pecuniary institutions, honorable mention jeopardy is an essential factor that needs to be managed. Credit risk is the possibility that a borrower or counter party may fail to meet its obligations in accordance with hold terms. Credit risk therefore, arises from the banks dealings with or lending to corporate, individuals and other banks or financial institutions.

In general, a banking system aggregates a high number of low prise deposits to fund enterprises with a smaller number of high take account loans. This intermediation through a well functioning bank helps to achieve some economic benefits for the depositors, the borrowers and above all -- the economy. The Bank must allocate loans effectively for achieving these broad objectives of the Economy. While identifying profitable enterprises, the Bank in fact -- identifies risks of the borrower and business in tell apart to allow loan in the context of its risk call back profile. In other words, Banks are in the business of risk taking; as such risk management is viewed as a core function of banking. As a financial enterprise, the prime objective of UTTARA BANK LTD. Bank... If you want to get a full essay, order it on our website: Orderessay

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