Credit Management System of Trust Bank Ltd.

Abstract

Credit management is a dynamic field where a certain standard of long-range planning is needed to allocate the fund in diverse field and to minimize the risk and maximizing the return on the invested fund. The objective of the credit risk management is to maximize the performing asset and the minimization of the non-performing asset as well as ensuring the optimal point of loan and advance and their efficient management. Continuous supervision, monitoring and follow-up are highly required for ensuring the timely repayment and minimizing the default. Actually the credit portfolios not only constitute the bank’s asset structure but also a vital factor of the bank’s success. The overall success in credit management depends on the banks credit policy, portfolio of credit, monitoring, supervision and follow-up of the loan and advance. This report points out the various functions and activities of Credit risk management of Trust Bank Ltd and also explains the basic framework of regulations and policies regarding Credit risk management. Government role to minimize the credit risk is extensively highlighted in this report. In fine, this report contains some findings and recommendations, which may be helpful for the bank.