The credit approval procedure : a brief analysis of the credit risk assessment system of Standard Chartered Bank and the level of satisfaction of the clients of local corporate segment
AuthorAudity, Athina Shaolin
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The report aims at identifying the positive aspects as well as the shortcomings of the entire process of credit approval and the credit risk assessment system of Standard Chartered Bank along with a descriptive analysis of the level of satisfaction of the clients of regarding the services and solutions offered to them by the Local Corporate segment of the bank. Incorporating the survey results with the outcome of the thorough analysis of the credit approval and credit risk assessment process of the clients is a major focus. It has been found that, the credit approval procedure of Standard Chartered Bank is divided into segments and disseminated to particular divisions with expertise in specialized fields to ensure that the whole process is flawless. Before providing the final approval, all the available information regarding clients‟ financials goes through extensive scrutiny. Prospecting and initiation, giving early business alert, obtaining CIB report and indicative offer letter, BCA preparation and approval, renewal, maintenance and monitoring of credit applications, preparation of operational sheet, BFL acceptance, security documentation, limit setup and facility drawdown are the stages of the credit approval process. In order to conduct the survey, structured questionnaire were mailed to 40 clients. The aim was to identify the level of knowledge regarding the services, views regarding their quality and standard and clients‟ feedback and suggestion to improve the services and solutions. The survey was successfully completed with a very low non-responsive rate. The outcome illustrated the fact that the clients perceived the services as solution to be good and feel that the products are reliable, accessible and in line with the quality that LC promises. On the contrary, Clients also felt that the staffs are not prompt, polite and responsive and do not communicate with them on a regular basis. Another negative factor mentioned by the clients was the long waiting time which was referred to as expensive and the reason behind this was found from the subjective analysis. The thorough and elaborate process that helps the bank manage the risks, lengthens the waiting time. Despite all these shortcomings, the comprehensive research portrayed that the efficient process and the evaluation of analysis at different levels by different experts ensures thorough inquiry and flawless decision making.