An Investigation of Credit Risk Management Strategies of Private Commercial Banks of Bangladesh
Journal Title: GATR Global Journal of Business & Social Science Review - Year 2014, Vol 2, Issue 2
Abstract
Objective - The study aims to investigate credit risk management practices and credit risk management strategies of the local private commercial banks in Bangladesh. Methodology -The investigation is conducted based on primary data collected from a set of both closed end and open end questionnaire from 23 out of 39 local private commercial banks in Bangladesh. Descriptive statistics has been used in processing the data and interpreting the results. Findings - The results reveal that credit risk management practice of the sample banks is sound which is attributed to the appropriate implementation of Basel II and credit risk management guidelines the country's central bank. The findings further show that use of Credit risk grading is most popular and effective criteria for measuring the borrowing capacity of the borrowers. In order to control credit risk and preventing losses from credit exposure banks give more focus on collateralization, accurate loan pricing and third party guarantee. Loan is monitored properly and credit reminder is given to the client if principal and interest remain outstanding for three months. The study further reveals that lack of experienced and trained credit officers, lack of genuine market information and Lack of awareness regarding non-genuine borrower are the most important problems of current credit risk management practices in Bangladesh. Novelty - To the best of the knowledge of the authors the study is the first that investigates credit risk management strategies of private commercial banks, especially on Bangladesh.
Authors and Affiliations
Abu Hanifa Md. Noman, Md. Amzad Hossain, Sajeda Pervin
The Impact of Joint Commission International Healthcare Accreditation on Infection Control Performance: A Study in Dubai Hospital
Objective - The United Arab Emirates (UAE) Vision 2021 aims to achieve a world-class healthcare system and the national agenda has set multiple Key Performance Indicators (KPIs) to accomplish accreditation by all healthc...
The Role of Union Leader-Member Relationship Capital within Trade Union for Mental Health
Objective There are three main objectives of this study. First, this study is to examine the influence of union effectiveness and perceived union support on union relationship capital to achieve positive mental health in...
Factors Affecting Consumer's Continuance Online Purchase Intention in Malaysia
Objective- This paper attempts to explore the continuance purchase intention among Malaysian consumers on the internet, through the conceptual framework as modified from the Technology Acceptance Model. Methodology/Tech...
Maintaining Food Security of Local Communities in Underdeveloped Regions through Agrarian Reform in Napan Village, Indonesian
Objective – The objective of this study is to identify the food security characteristics in local communities at Napan Village, Nusa Tenggara Timur Indonesia and to study the implementation of agrarian reform principles...
How Far Islamic Banking Has Gone Globally and Nigeria in Particular
Objective- Non interest banking, also known as Islamic banking is a system of banking that does not permit interest to either be given or received by the bank for the maintenance of their customers or client account or a...