Evaluating the effectiveness of central bank’s regulation on credit risk management (CRM) in mitigating default risk: a study on Dhaka Bank Mirpur branch

Abstract

The primary goal of this report is to complete my undergraduate degree. This report reflect both my academic and personal life. Since my major is Finance and Accounting and my internship area was Customer Credit and Trade department of Dhaka Bank Mirpur Branch, this report will also reflect some useful financial terms. This whole report has been divided into three chapters. First chapter will contain all information about me and my internship journey. Second chapter will reflect the organizational insights of the bank. And the third chapter will contain of my project part which is on evaluating Credit Risk Management of Dhaka Bank PLC Mirpur Branch. The first chapter will show my internship information. It will showcase all my listed jobs that I have performed at Dhaka Bank during my internship period. The Second chapter will consist of organizational data. It will show all the organizational activity of the bank in its different department like, HR, financial practice, marketing and so on. Moreover, financial part will show the financial analysis of 3 years financial data to analyze the overall financial performance of the bank. At the end, the paper will show the strength and weakness and the upcoming threats and opportunities of the bank. And the third chapter will discuss about the credit risk management policy of the bank. Like any other banks in Bangladesh Dhaka Bank PLC also have their own credit risk management policy abiding the CRM guideline of Bangladesh Bank. This paper will analysis how well the bank is managing their credit risk, how Bangladesh Bank’s CRM guideline impacting the bank’s CRM policy, how effective their CRM policy is in reducing NPL rate, good their credit quality is by analyzing the NPL over 5 years. Besides the paper will also analyze what are the challenges the branch is facing while maintain credit disbursement procedure. In the end there will some recommendation for the bank regarding improvement of their credit disbursement process and upgrading their CRM policies. In conclusion, I want to say that by writing this paper I have tried to implement my academic knowledge in practical also know about every details of the bank. This report will help to design my career which I am heading to.