Credit facilities extended to clients which are secured by: Credit facilities extended to cover or to hedge foreign currency risk against Letters of Credit are called exchange fluctuation risk. This class of risk is concerned only with risks taken on a banking financial institution and can be further explained as follows:
Credit risk arises from non performance by a borrower. It may arise from either an inability or an unwillingness to perform in the pre-commitment contracted manner. The real risk from credit is the deviation of portfolio performance from its expected value.
The credit risk of a bank is also effect the book value of a bank. The more credit of a particular is in risk, the more probability of a bank to be insolvent.
Therefore, the status of depositor in the bank is at risk and probability of incurring loss from their deposited value. In other way the risky of a commercial bank is calculated through long term and short term rating by the credit rating agencies. In my whole report, I was working on the credit risk of Eastern Bank Limited.
During the preparation of the report, I provide the last six years information of EBL from In the whole report I also explain the credit policy and credit risk management of EBL. Those ratio of EBL indicate that the credit risk in that year was more than any other year in the last five one.
Compare to the last five financial years, EBL has got more comfortable position in case credit risk as well as profitability in The non performing loan ratio is decreased to 2.
In the credit risk part, I also find the relationship of Non Performing Loan with the some selected factors.
Finally, I like to conclude that EBL is one of the most promising and fast growing bank in our country. According to its operational excellence, it is now competing with some renowned foreign commercial banks which are operating in our country. Banks are classified as two such as State-owned and Private Banks.
And the needs of commercial banks in the country are more important than the nationalized banks in many ways. Primarily, commercial banks are the one of the major source of funds in the economy of Bangladesh.
By borrowing money from the locals and lending the same to the locals as loans and advances, they perform an important function. Eastern Bank Limited is a service and profit oriented organization.
It gains profit through successful efficient management, which is achieved through its human resources. Getting and keeping good people is critical to the success of every organization, whether profit or non-profit, public or private.
Those organizations that are able to acquire, develop, simulate, and keep outstanding workers will be both effective and efficient. The report will give and overall idea about the credit management of Eastern Bank Limited. Dhaka University has goals to produces world-class graduates within the local environment with knowledge and skill to provide leadership in enterprise, public service, and welfare of our society.
Internship of Business Faculty is a step towards fulfilling this commitment by given the students an opportunity to get ready for the real world before they entire into their practical life.
For the internship program, each student is attached with an organization. There are two sources of data have been used and most of the data are collected from the secondary sources.
The sources are- Primary Sources: Interviewing the bank officials of Credit Risk Management division and Official records and observing practical work Secondary Sources: B Data analysis techniques: This report is an analytical one. Different statistical tools are used in analysis and presentation of data throughout the report.
Compare the different banks credit risk scenario on the basis of ratio calculation. Microsoft Excel is used in calculating and constructing of graphs SPSS software is used to analyze correlation and multiple regression analysis.
In other way the riskiness of a commercial bank is calculated through long term and short term rating by the credit rating agencies.
It was one of the major limitations of this report. The subject matter of this report was so vast that despite of the time given, I have not included all the aspects of credit policy as I expected earlier.
However, I tried my best to present this report before the submission deadline. As a newcomer to banking service, I have taken considerable time to understand this business. To make a solid report I felt the urgency of communication with high-level employees but in commercial bank time is money and there is no opportunity to make appointments with them.
I believe, inadequate discussion is one of the limitations of the report. The report will be very information worthy if I get the opportunity to make a comparative analysis of credit policy and default culture.
Nevertheless, the fact is, most of the banks do not disclose consumer loan data in a separate heading in the annual report.This internship report is based on the topic- Analysis of Consumer Credit Scheme – An Overview of Eastern Bank Ltd. During this period, I able to gather practical knowledge about the overall consumer financing procedure of EBL.
The first part of the report gives a synopsis of Eastern Bank Ltd . Eastern Bank Limited provides financial, personal and commercial banking, trade, cash management, treasury, securities, and custodial services to retail, corporate, and small and medium enterprise (SME) customers in Bangladesh and internationally.
A partial report preview for Eastern Bank Ltd is shown below.
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Eastern Bank Limited follows a Credit Risk Management Practice that complies with the rules and regulation set by Bangladesh Bank.
Eastern Bank has set extensive procedures both at the pre-sanction stage of credit proposal assessment and also at the post –sanction stage. FAR EASTERN BANK LIMITED 5 Wee Cho Yaw Chairman Age Dr Wee has been the Chairman and Chief Executive Ofﬁ cer (“CEO”) of United Overseas Bank (“UOB”) since He relinquished his position as CEO on 27 April He was appointed Chairman of the Far Eastern Bank Board on 17 August and last re-appointed as Director on Eastern Bank Limited, a second generation publicly listed commercial bank incorporated in Bangladesh, has been operating since August 16, under the Bank Companies Act, with primary objective to carry out all kinds of banking businesses in and outside Bangladesh.