Internship Report On:

Credit Risk Management Of

Brac Bank LTD
A case Study on Jamal khan Branch
1
Internshi reort on!
Credit Risk Management Of
Brac Bank LTD
A case Study on Jamal khan Branch
(This Internship Report Is Submitted For the Partial Fulfillment of the Degree of Master of
Business of Administration with a Major in Finane!
Super"ised B#
Lecturer
Faculty of Business studies
Prepared B#
Name:
Student I:
!ro"ram:
#a$or in finance
Su%mission ate:

ii
Letter of Transmittal
ate: &'()1(&)1*
+o
+he Super,isor
Lecturer
Faculty of Business studies
Su"! !rayer for su%mission of internship report on -redit Risk #ana"ement of Brac
Bank L+.
.
#adam/
0ere is the Internship Report I am re1uired to su%mit to he faculty as a part of the completion of
R#BA pro"ram. #y topic is e,aluation of asset lia%ility mana"ement of a commercial %ank. I
choose Brac Bank Limited/ Jamal khan Branch. For doin" so/ I had to collect data from ,arious
sections of the said %ranch Brac Bank Ltd/ such as/ -redit epartment/ Forei"n +rade
epartment etc.
I hope that the information placed throu"h this Report 2ill pro,ide you enou"h information
a%out Brac Bank acti,ities. I am al2ays a,aila%le to discuss the same 2ith you to %e a%reast of
the time.
Sincerely yours
3.........................4
Name:
Student I:
!ro"ram:
#a$or in finance
iii
Ackno#ledgement
I am ,ery much "rateful to Almi"hty for "i,in" me the scope ha,in" a de"ree in Business 5ducation and
to prepare this term paper. I pay "ratitude to the Super,isor of my report/ +he Super,isor. / Lecturer
epartment of finance. Faculty of Business studies/ 6I+S/ -hitta"in". I also pay honor to the teachers
for their contri%ution. I am also "rateful to 0onora%le -hief 57ecuti,e Officer of Brac Bank Ltd. Jamal I am also "rateful to 0onora%le -hief 57ecuti,e Officer of Brac Bank Ltd. Jamal
8han %ranch 2ho has "i,en me the !ractical 8no2led"e a%out the %ankin" operations. 8han %ranch 2ho has "i,en me the !ractical 8no2led"e a%out the %ankin" operations.
i,
$%ecuti&e summary
Brac Bank mainly deals 2ith lar"e corporate customers seekin" lar"e loan facilities. But for
%anks/ loans are the lar"est and most o%,ious source of risk. 57perience in recent years has
sho2n that a%sence of proper mana"ement of such risk has resulted in si"nificant losses or e,en
cripplin" losses for a num%er of %ankin" institutions. 5ffecti,e credit risk mana"ement is
therefore ,ital to ensure that a %ankin" institution9s credit acti,ities are conducted in a prudent
manner and the risk of potential %ank failures reduced. So/ appropriate policies/ procedures and
systems should %e implemented at each financial institution for identifyin"/ measurin"/
monitorin" and controllin" credit risk effecti,ely.
BBL follo2s a centrali:ed approach in e7tendin" its credit. Relationship #ana"ers 3R#4 %rin"s
in ne2 customers and prepares credit proposals for them. +he proposal packa"e is then sent to
the -redit Risk #ana"ement 3-R#4 department analy:es the risk miti"atin" factors and sends
the proposal 2ith recommendation to the credit appro,in" authority. -redit appro,in" authority
appro,es the proposal or denies it and sends the same to -R# a"ain. BBL has a 2ritten credit
policy manual. It fully complies 2ith Ban"ladesh Bank ;uidelines. BBL does not e7tend credit
to a %usiness/ if it does not understand the %usiness. +he process of credit assessment is also
"uided %y the central %ank directi,es. A thorou"h credit and risk assessment is conducted prior
to the "rantin" of loans/ and at least annually thereafter for all facilities. +he loan structure is
matched 2ith the cash con,ersion cycle of the %usiness and appropriate security is taken as
collateral. In short/ credits are not e7tended relyin" on $ust the %orro2er9s or sponsorin" units
reputation in Brac Bank Limited.
,