Credit risk management of Bank Asia Limited

Abstract

In Bangladesh Bank Asia Limited is a private sector ordinary commercial bank incorporated under the Banking Companies Act 1991. BAL is one of the most successful third generation banks in Bangladesh. I was given the topic “credit risk management of Bank Asia Limited”. Bank Asia both listed in DSE and CSE. I have collected 5 years of annual report, study papers, BAL website etc. The report mainly focuses on the sequential activities involved in the credit approval process; analytical techniques used by Bank Asia for credit analysis as an integral part of the credit approval process. The report also focuses on risk management techniques applied by Bank Asia both in the pre- and post- disbursement stages of a credit. A total of documents is divided in four main chapters. Chapters are further divided into subchapters according to the content of the chapters. In chapter one, a brief introduction is included here. Where it contains objectives of the report, methodology of the report and literature of review. In chapter two, a brief historical background is given where credit risk management of BAL is included. It contains credit risk policy and system, wings of credit management, credit policy, credit assessment and risk grading, disbursement authority and credit administration, approval process, credit monitoring, recovery procedure, credit policy for risk mitigation, and credit administration for risk mitigation. In chapter three, I analyzed 5 years of credit management. And in chapter four included, findings of the report, some related recommendations to improve present scenario. Then a short conclusion is given based on report. A level effort has been made to prepare this effective and relevant report that can provide a realistic view of the credit risk management of Bank Asia Limited.