Evaluation of credit assessment & risk grading management of Dutch Bangla Bank ltd.

Abstract

This paper has attempted to highlight on an evaluation of Credit Assessment and Credit Risk Grading (CRG) in the context of Dutch Bangla Bank Limited, Shantinagar Branch. Dutch Bangla Bank Limited is among the leading commercial banks of the country. Lending is one of the principal functions of the bank. Sound lending practice therefore, is very important for profitability and success of a bank. . For the sake of sound lending, it is necessary to develop a sound policy and modern credit management techniques to ensure that loans/ advances are safe and the money will come back within the time set for repayment. For this purpose, proper and prior analysis of credit proposals is required to assess the risk. Credit risk analysis is one of the basic to risk management and control, as it is the risk factor inherent in many bank businesses as the quality of credit is critical to sound banking. For the effective application of CRA, expertise and willingness as well as motivation of the bankers are needed. By removing the road blocks of CRM and CRG implication through the recommendations mentioned in this paper Dutch Bangla Bank Limited can open a new horizon to better assess the risks for lending bankers and will bring the accountability in financial sector.