Cards operations in Bangladesh: an overview of Eastern Bank Ltd.

Abstract

Risk is inherent in all aspects of a commercial operation; however for Banks and financial institutions, credit risk is an essential factor that needs to be managed. Credit risk, therefore, arises from the bank’s dealings with or lending to corporate, individuals, and other banks or financial institutions. Credit risk management is utmost important to Banks, and as such, policies and procedures should be endorsed and strictly enforced by the top level management and the board of any Bank. According to the guideline prescribed by Bangladesh Bank, EBL restructured its credit approval and monitoring procedures in the year 2002. This improved the risk management culture and established minimum standards for segregation of duties and responsibilities resulting better control on the overall loan approval and monitoring process. The credit evaluation and the credit risk management policy of Eastern Bank Ltd. is the main concern of this report. Besides that some specific objectives of this report is to know about the credit risk principle of the Prime Bank Ltd., how the bank follow credit risk management policy, to find out the general credit principle of the bank, to know about the credit products, gain idea on credit facility of the bank, how the bank asses the credit risk, to compare the credit operation of bank with the literatures statements etc.