A comparative study on credit risk management system of Prime Bank Limited

Abstract

Prime bank limited is the emerging commercial bank in Bangladesh. Within a short period of time PBL has managed to establish itself as a strong performer in the financial market. It is rapidly expanding and enjoying a high growth rate. Its loan portfolio is increasing every year. For this reason, efficient management of credit risk management is crucial for continuous success of PBL. All commercial banks operating in Bangladesh are strictly regulated by Bangladesh Bank. It has provided a guideline for credit risk management. All banks try to comply with that guideline. Prime Bank Ltd. is no exception of this practice. PBL has segregated the credit related activities. Marketing, preparation of credit proposal, other documentation, credit disbursement, credit monitoring etc. are done at branch level. Credit administration and credit risk management related works are done at head office. In this report I have used primary and secondary sources to provide the detail of credit risk management process and did some research on how the existing employees working in CRM division feels about the importance of credit risk management policy and system for a Banks’s positive growth and success in the market. I have also tried to provide some recommendations based on my findings and on overall report that could be beneficial for further development of the CRM division. In addition, Prime Bank has already made significant progress within a very short period of its existence. The bank has been graded as a top-class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.