View with images and charts A Study on Credit Risk Management Preface The history of the banking sector of Bangladesh is fairly short and started with the nationalization of all banks (except the branch of foreign banks) operating in the country immediately after the liberation. As a step towards establishment of the government's socialist leaning economic policy, all banks were nationalized. The banking sector of Bangladesh has grown over the time under the bank branching system. Structurally, the banking system is composed of institutions: the central bank, commercial banks, specialized banks, development financing institutions (non-banking institutions) and cooperative banks. The banking sector of Bangladesh provides an interesting study regarding various effects of macroeconomic variables and portfolio elements on the profitability of the banks because it went through phases of both financial repression and liberalization. The issue of profitability and the banking sector performance in Bangladesh continues to be a perennial source of discussion among academicians, policy makers and the practitioners. Credit risk decision is crucial for a financial institution like bank. So here we would like to attempt to study on credit risk management and we have selected our field as United Commercial Bank (UCBL). Basically we would try 路 路
To assess the credit risk managing behavior of our selected bank UCBL To examine the relationship between Mortgages and default risk premium by bank.
The profitability of banks depends on the operational efficiency of the banks no doubt but some scholars in this fields, economists and policy makers believe that the profitability of banks also depends on some external factors as well as internal. These are general expectation of banks with respect to general economic trends, environmental, seasonal and political situations. However the specific expectations are the changes in money supply, capital market and money market trends, export-import, real and service sector production etc. many economists found that the control of expenditures is the prime determinant of the creditworthiness of client. . Mogen (1971) in his study mentioned that the money market conditions, money supply, population growth rate and individual banking habit have effects on the banking performance i.e. it is effecting the credit risk managing behavior and assessing behavior of the bank. These factors determine the degree of operating risk or the quality of the operating earning flows of the banks. A panorama of UCBL Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists of the country and also participated by the Government, UCBL started its operation in mid 1983 and has since been able to establish the largest network of 80 branches as on 31. 08. 2001 among the first generation banks in the private sector. With its firm commitment to the economic development of the country, the Bank has already made a distinct mark in the realm of Private Sector Banking through personalized services, innovative practices, dynamic approach and efficient Management. The Bank, aiming to play