Internship Report on the Credit Risk Management of Basic Bank Ltd.

Abstract

Credit risk management entails controlling the likelihood that a business will suffer losses if its borrowers fail to make their repayment BBLigations. The major goal is to lower the growing amount of non-performing assets held by customers and to promptly recover those assets by making the proper choices. Credit risk is the most significant risk for any financial organization. In fact credit risk enters through from the loan defaulter who failed to pay the portions of loan regularly. Sometimes the person who takes the loan becomes reluctant to repay the money he committed arise the issues of credit risk. The credit danger of a bank is eventually affecting the overall estimation of the entire banking system. The more a bank is in hazard regarding the credit risk, the more it is close to be ruined. Around the globe, in excess of 50 percent of aggregate risk components in Banks and Financial Institutions are in the credit risk alone. Moreover, patronizing credit risk for a management of the financial institutions has leads the important task for a bank. This report leads to the reader to gather some knowledge in assessing the credit risk process. It endeavors to get the strategies honed in the Basic Bank Ltd. in collaboration with the credit risk dealing with. It also tends to driving to have an idea with to the credit methodology and hazard management process of Basic Bank Ltd. In the chapter one, a brief description was including with background of the report, scope of the report with limitations.