Credit risk management of NCC Bank PLC

Abstract

This report is based on my internship I did in NCC Bank PLC and worked in the Credit Department and learned more about how NCC Bank manages credit risk. Credit risk is one of the biggest challenges for banks, as it occurs when borrowers are not able to repay their loans, which puts the bank's financial health at risk. During my internship, I was able to see how NCC Bank makes loans, tracks borrowers, loans, and steps taken to collect overdue money. The bank follows the guidelines of Bangladesh Bank and has its own policies to reduce risk. I also observed the role of my supervisors and other officers carefully analyzing loan applications and monitoring accounts. From my learning, it is clear that NCC Bank has a proper structure for the management of credit risk, but there are also problems and challenges, such as loan defaults and legal issues in the recovery. At the same time, I believe that the bank can also further improve by introducing more technology and improving the monitoring system. This report shows both my academic knowledge and what I have learned practically during the internship, however, it also contains some recommendations in order to make the management of credit risk in NCC Bank even better.