The Major Activities Performed in Credit Risk Management Division of Dhaka Bank Limited

Abstract

The internship report titled ” on the Major Activities Performed in Credit Risk Management Division of Dhaka Bank Limited” is basically based on a 12 weeks internship program that I have successfully completed in Dhaka Bank Limited under Credit Risk Management Division, as a requirement of my BBA program of School of Business and Economics, united international university. Risk management is one of the critical factors in banking and is one of the core competencies of Dhaka Bank Limited (DBL). DBL recognizes that a critical factor in the bank‟s continued profitability and stability highly depends on an effective risk management framework in place and an efficient risk return management. DBL ensures its risk management capabilities and also continuously promotes a proactive risk management culture in the bank. It covers five core risk areas: Credit Risk, Asset-Liability/ Balance Sheet risk, Foreign Exchange Risk, Internal Control & Compliance and Money Laundering Risks The most significant risk a bank is exposed to is what generally termed as “Credit risk or default risk”. Since the largest slice of income generated by a bank from credit and a major percentage of assets are subject to this risk, it is obvious that prudent management of this risk is fundamental to the sustainability of a bank.(Dhaka Bank Annual Report 2016) Credit risk management is a robust process that enables banks to proactively manage loan portfolio in order to minimize losses and earn an acceptable level of return for shareholders. In this issue Credit Risk Management Division or CRM Division plays a very important role. The main task of CRM is evaluating different aspects of a Credit proposal, assessing risk of the borrower, presenting the issues in the MCC, EC, Board meeting and finally approving or dealing the Credit proposal. Other than that it supplies different risk related issues to the need .