Credit policy for corporate clients of Mercantile Bank Limited

Abstract

This report is based on ‘Credit Policy for Corporate Clients of Mercantile Bank Limited’ which is prepared from the experiences gained by working in Credit Department at MBL. At the present time, Banks and Financial Institutions are becoming very competitive and various kinds of services and products provided by financial institution are increasing with rapid growth. People need money to accommodate their livelihoods as well as updating with the present world of living, therefore people take ‘Credit/Loan’ from the bank. For this reason different organizations require credit facilities from the bank to run their business so that they can meet the need of people by their various types of products and services. This report focuses on different credit facilities provided to the Corporate Clients by Mercantile Bank Limited and the procedure of lending such. With the clear mission to provide efficient banking services and to contribute socio-economic development of the country, Mercantile Bank Ltd emerged as a new commercial bank and inaugurated its operation on 2nd June, 1999. The bank has 86 branches all over the country up to 2014. There are 30 sponsors involved in creating Mercantile Bank Limited. The sponsors of the bank have a long heritage of trade, commerce and industry. They are highly regarded for their entrepreneurial competence. The major task for a bank is to survive in the competitive environment of credit service by managing its assets and liabilities in an efficient way. And Mercantile Bank Limited manages the assets and liabilities effectively. Consequently it is achieving success and prosperity. It operates in a disciplined and prudent manner with a focus on driving productivity initiatives with delivering sustainable improvements in business practices.