Credit Risk Management Essay

20584 Words Feb 5th, 2011 83 Pages
Credit Risk Management
CHAPTER: ONE
ORIENTATION TO THE REPORT
CHAPTER-1
Orientation to the Report
1.1 THE AUTHORIZATION FACT
Internship is a compulsory requirement for everybody pursuing a BBA degree at University of Dhaka. The Internship program includes organizational attachment period of 12 weeks and report writing period of 4 weeks. I am working with the Operations Divisions of IDLC Finance Limited. After consultation with my faculty advisor Mr. Md. Nazim Uddin Bhuiyan and my supervisor in the host organization Mr. Md. Abdul Hannan, I decided to work on the policies and practices of credit risk management and appraisal process of IDLC. I strongly believe that, this study will enrich my knowledge in the very crucial area of
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The second part focuses on the credit appraisal, loan classification, credit risk grading, and other credit risk management practices followed by IDLC. This part also includes a comparison of with the central bank’s credit risk management guideline for the financial institutions. Moreover, as a supplementary, this second part includes IDLC’s CRM practices with that of IPDC of Bangladesh Limited, the main sponsor shareholder of IDLC, for identifying the common deviations of CRM practices among the financial institutions of the country from the central bank guideline. However the report does not cover all financial institutions (non-bank) active in our country.
1.4 METHODOLOGY
The credit risk management techniques and appraisal process followed by IDLC Finance Limited have been observed through practical attachment with the operation of the company. On the job training is the primary tool to evaluate and analyze the process. Both primary and secondary sources have been used in preparing the report.
• SECONDARY SOURCES:
□ Relevant information regarding the background, products and services, and financial performance of the subject company from website, company annual report, brochures, and written policies.
□ The credit risk management guideline for financial institutions specified by Bangladesh Bank from the central bank website.
• PRIMARY SOURCES:
□ Unstructured interview of Mr. Ariful Alam Chowdhury,

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