Credit Risk Management of Jamuna Bank Limited

Abstract

In general, we may clearly deduce from the name "bank" that the institution works with money. Nevertheless, there are several other kinds of banks, including central banks, commercial banks, savings banks, investment banks, industrial banks, cooperative banks, and others. However, when the word "Bank" is used without any qualifiers or prefixes, it refers to commercial banks. A nation's economy is mostly supported by commercial banks. Commercial banks are thus for-profit companies that hold customer and business deposits in checking and savings accounts before using these money to generate loans. Because banks are profit-driven organizations, they solicit deposits at the lowest feasible rate in order to provide loans and advances at a greater cost. The difference between the two is advantageous to the bank. As the need for high-quality services increases daily, they are developing fresh, innovative ideas for products and services. Both financial institutions are looking for ways to provide their consumers with better services in order to thrive in the competitive banking industry. As a result, everyone now has to have a fundamental knowledge of banks and banking practices. A broad collection of people from many sectors of banking, trade, and industry worked together to create Jamuna Bank Limited. It was established as a commercial bank in 2001 in accordance with the Companies Act of 1994. The bank launched its banking activities on June 3, 2001. Since its foundation, JBL's goal has been to distinguish itself as a unique commercial bank by providing its cherished clients with a wide range of innovative services. The ultimate goal is to increase the degree to which SWIFT and financial treasury resources are mutually sustainable for international trade. The bank has achieved excellent achievements in all areas of company operations, making significant progress in a short period of time and carving out a desirable position among its competitors. Currently, Bangladesh is home to 112 branches of the bank. As a new generation private commercial bank in the area, JBL provides its customers with all conventional banking services. Additionally, a variety of products and services based on deposits and credit are available. such includes services for managing funds, processing payments, providing safe deposit boxes, and providing perks to employees. Commercial banking services are offered by Jamuna Bank Limited. The Bank also engages in other 3 operations, such as offering its clients Islamic financial services through Islamic Banking offices. Two of the bank's industrial sectors are conventional banking and Islamic banking. Working capital financing, encompassing working capital methods like time loans and cash credits; offers for importers, including loan against trust receipt and time loans; and offers for exporters, including over draft and packing in It offers a range of services, such as bid bonds, overdrafts, value guarantees, and security bonds, to suppliers and manufacturers. Jamuna Bank Capital Management Limited and Jamuna Bank Securities Limited are its subsidiaries.