Credit Performance Analysis of National Credit and Commerce Bank Limited

Abstract

Bangladesh's banking industry is constantly extending its reach into new financial services. The banking process is being streamlined, made simpler and more accessible at the same time, which benefits the banking sector's overall performance. Banks are developing new, innovative concepts, products, and facilities to make banking simpler and more user-friendly as clients and customers expect better services and more amenities on a daily basis. All banking businesses in Bangladesh are searching for ways to provide their customers with better service in order to thrive in the fiercely competitive banking industry. Because of this, it has become crucial for everyone to have some understanding of banks and banking practices in order to handle daily operations relating to banks. The rapid changes in the global banking sector are a result of technology and globalization growth. To stay up with the pace of global development, Bangladeshi banking must continuously update its core banking operations. Private commercial banks must retain "Professionalism" in the sense of creating the necessary staff and its skills and experience to minimize the risk factor in order to thrive in the local and global competitive market. One of the most crucial challenges for the growth of a robust economy in Bangladesh is credit performance in the banking industry. Credit performance analysis and management give the bank's financial reporting the necessary market transparency. This credit performance analysis and management demonstrates how well banks are able to handle unfavorable circumstances and results. The external causes as well as the internal ones contribute to the credit performance that the banks face. Public and private banks in Bangladesh are exposed to banking credit performance as a result of aggressive banking practices made to achieve a competitive advantage. However, credit performance in bank is uncertain that surrounds the likelihood of particular behaviors. Because of this, credit performance management is held in a mandated unit known as the Credit Performance Management Unit in various banks throughout Bangladesh (CPMU).