Abstract:
It is based on primary data and secondary data. Information from various sources such as annual
reports, bank credit manuals etc.
In this report, I present the aspects of "Credit Risk Management" involving four private
commercial banks. For this report I analyzed the CRG score model to measure credit risk. The
CRG model focuses on a variety of risks, such as financial risk, business risk, management risk
and security risk, etc. This CRG score provides information on whether or not a bank's credit risk
is high or low. The main objective of the study is to gain knowledge about Southeast Bank Credit
Risk Management and Credit Risk Grading System.
First I develop a credit grading score for each of the major risk factors and finally determine the
total risk grading score for the bank based on the five major risk factors. Each bank carries a
single number of risk grade scores determined by the weighted average score of each of the sub-
division risk factors and eventually develops the total risk. The total risk score was determined
by the weighted average risk of each individual component.
Description:
People are becoming more aware of managing their resources. As banks do their business
by lending money to depositors, they are more responsible for managing their credit portfolio
easily. The bank is committed to providing high quality financial services / products to
contribute to the growth of trade and commerce of the country. The importance of a bank's credit
activities is of great importance because it generates the largest portion of the bank's gross
income, the highest risk lies in it, and even the existence of the bank depends on the discreet
management of its credit portfolio. The reputation of the bank is the most important factor for its
success and so the multinational banks must adhere to proper guidelines, policies and strict rules
regarding the promotion and recovery of guidelines. The use of banking services for any kind of
financial activity is increasing day by day. People are borrowing for startup business as well as
other purposes. Therefore, it is very important to know the internal credit procedures of banks.
