Credit Risk Management of IFIC Bank: A Case Study on Naya Paltan Branch
Surovi, Faterma Akter
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At the initial stage, the contribution of financial development is at the highest point of the country and day by day it is increasing into all other banks’ financial section. In June 24, 1983 IFIC bank limited has been entered into their banking operations. Earlier in 1976 it made a joint venture finance company with the Government of the People’s Republic of Bangladesh. Credit is not an ending process. Another credit has been automatically made by recovery of one credit. Through this process of returning of capitals, IFIC gets interest as a part of their income. There are many ways that a bank can use their capital. It makes different variations of loans, debts or advances for their different users. The debtor needs different kinds of debts which are provided by a bank. The bank provides two types of total loans – customer finance & different organization finance. The sections of credit are the more dangerous part for any kinds of bank mainly the commercial bank. Both parties should provide assurance such as to recover the loan that the bank critically examines and loan borrower receives loan based on the information. There are some steps in case of loan appraisal such as application collection, procedure of approval, administration of credit, types of securities, documentation of credit, requirement of compliance, measurement of risk, duties of custodial etc. It must have some legal process to find out potential credit damages in order to make solutions to minimize its damages. On the other hand the process should be take place with exceptions that are relevant in credit. Moreover, the bank should make regular contact with customers so that it helps to develop strategies that are mutually acceptable by both parties. IFIC bank Ltd., Naya paltan Branch used to provide three types of loan such as fixed loan, regular basis of loan, micro credit.
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