... : 0300-8645314 Landline : 042-35184323 E-mail : syedtaqishah14@yahoo.com QUALIFICATION Academic : Bachelor of Arts (Punjab University) Professional : D.A.I.B.P (Institute of Bankers) ASSIGNMENTS HANDLED COUNTRY MANAGER – T24 TRAINING & BRANCHES ROLL OUT – BSIGMEMBER OF BUSINESS TRANSFORMATION TEAM (BTT) | : | From March 2010 to October 2011 * T24 Roll Out Teams Selection / hiring / transferring of suitable resources * T24 Roll Out Planning * Preparation of T24 Training Modules * Resource deployment planning & execution | HEAD – T24 USER GUIDES PREPARATION TEAM – OPS GROUP | : | From June 2009 to February 2010Prepared 20 Core Menus User Guides, besides User Guides on Expense Templates, Credits & Treasury. | REGIONAL HEAD – CRBG | : | From July 2005 to May 2009Regional Head-CRBG (Gujranwala & Faisalabad) Promoted as Senior Vice President in 2006 | HEAD, MONITORING, IMPLEMENTAITON & REPORTING WING, AUDIT & INSPECTION DIVISION, C.O.K. | : | From June 2004 to July 2005 | HEAD ADMIN. & PURCHASE WING ESTABLISHMENT DIVISION C.O.K. | : | Since June 2003 to September 2003 | REGIONAL CONTROLLER (OPERATIONS) | : | Posted as Regional Controller Operations at:Lahore: March 2002 to September 2002Faisalabad: September 2002 to June 2003Karachi: September 2003 to May 2004 | REGIONAL AUDIT CHIEF | : | Posted as Regional Audit Chief of Faisalabad and Sargodha Regions from...
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...1.0 Introduction Risk is the element of uncertainty or possibility of loss that prevail in any business transaction in any place, in any mode and at any time. In the financial arena, enterprise risks can be broadly categorized as Credit Risk, Operational Risk, Market Risk and Other Risk. Credit risk is the possibility that a borrower or counter party will fail to meet agreed obligations. Thus managing credit risk for efficient management of a Financial Institution has gradually become the most crucial task. Credit risk management needs to be a robust process that enables Financial Institution s to proactively manage facility portfolios in order to minimize losses and earn an acceptable level of return for shareholders. Credit risk is most simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maximize a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. Banks need to manage the credit risk inherent in the entire portfolio as well as the risk in individual credits or transactions. Banks should also consider the relationships between credit risk and other risks. The effective management of credit risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organization. Prime Bank primarily lends for trade finance although some amount of project...
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...STANDARDS OF SOUND BUSINESS PRACTICES CREDIT RISK MANAGEMENT © 2005 The Bank of Jamaica. All rights reserved Bank of Jamaica February 1996 Credit Risk Management Page 2 CREDIT RISK MANAGEMENT A. PURPOSE This document sets out the minimum policies and procedures that each licensee needs to have in place and apply within its credit risk management programme, and the minimum criteria it should use, to prudently manage and control its credit portfolio and exposure to credit risk. Experience indicates that credit quality goes hand in hand with financial soundness. Deterioration in credit quality is often a sign of problems in an institution. The major risk accompanying a weakening of the credit portfolio is the impairment of capital or liquidity. For most institutions, extending credit comprises the major portion of their business. To a great extent, therefore, the quality of an institution’s credit portfolio determines the risk to depositors Credit risk management must be conducted within the context of a comprehensive business plan. Although this document focuses on an institution’s responsibility for managing and controlling its credit portfolio and exposure to credit risk, it is not meant to imply that credit risk can be managed in isolation form asset/liability management considerations, such as the need to maintain adequate liquidity, or other risks. B. DEFINITION Credit is the provision of, or a commitment to provide funds or substitutes for funds (both on-...
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...36 36 37 37 38 38 Introduction Overview Risks Associated with Lending Credit Culture and Risk Profile Loan Portfolio Objectives Strategic Planning for the Loan Portfolio Financial Goals Risk Tolerance Portfolio Risk and Reward The Loan Policy Loan Policy Topics Loan Approval Process Portfolio Management Oversight Risk Identification Exceptions to Policy, Procedures, and Underwriting Guidelines Documentation Exceptions Policy and Underwriting Exceptions Aggregate Exception Tracking and Reporting Portfolio Segmentation and Risk Diversification Identifying Concentrations of Risk Evaluating and Managing Concentrations of Risk Concentration Management Techniques Stress Testing Allowance for Loan and Lease Losses Credit Management Information Systems Collections and Work-out Lending Control Functions Independence Credit Policy Administration Loan Review Audit Administrative and Documentation Controls Comptroller’s Handbook i Loan Portfolio Management Communication with Senior Management and the Board Loan Portfolio Management Supervision Asset Quality Reviews Targeted Reviews Process Reviews Administrative and Documentation Reviews Compliance Reviews Follow-up Evaluations on Management Commitments Ongoing Supervision Examination Procedures General Procedures Quantity of Risk Quality of Risk Management Conclusion Procedures Appendixes A. Topics of Loan Policy B. 12 CFR 30 — Safety and Soundness Standards C. Portfolio Credit Risk Management Processes D Loan Production Offices...
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...Credit risk management Principles for the Management of Credit Risk I. 1. Introduction While financial institutions have faced difficulties over the years for a multitude of reasons, the major cause of serious banking problems continues to be directly related to lax credit standards for borrowers and counterparties, poor portfolio risk management, or a lack of attention to changes in economic or other circumstances that can lead to a deterioration in the credit standing of a bank’s counterparties. This experience is common in both G-10 and non-G-10 countries. 2. Credit risk is most simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maximise a bank’s risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. Banks need to manage the credit risk inherent in the entire portfolio as well as the risk in individual credits or transactions. Banks should also consider the relationships between credit risk and other risks. The effective management of credit risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organisation. 3. For most banks, loans are the largest and most obvious source of credit risk; however, other sources of credit risk exist throughout the activities of a bank, including in the banking book and in the trading book...
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...Principles for the Management of Credit Risk Basel Committee on Banking Supervision Basel September 2000 Risk Management Group of the Basel Committee on Banking Supervision Chairman: Mr Roger Cole – Federal Reserve Board, Washington, D.C. Banque Nationale de Belgique, Brussels Commission Bancaire et Financière, Brussels Office of the Superintendent of Financial Institutions, Ottawa Commission Bancaire, Paris Deutsche Bundesbank, Frankfurt am Main Bundesaufsichtsamt für das Kreditwesen, Berlin Banca d’Italia, Rome Bank of Japan, Tokyo Financial Services Agency, Tokyo Commission de Surveillance du Secteur Financier, Luxembourg De Nederlandsche Bank, Amsterdam Finansinspektionen, Stockholm Sveriges Riksbank, Stockholm Eidgenössiche Bankenkommission, Bern Financial Services Authority, London Bank of England, London Federal Deposit Insurance Corporation, Washington, D.C. Federal Reserve Bank of New York Federal Reserve Board, Washington, D.C. Office of the Comptroller of the Currency, Washington, D.C. European Central Bank, Frankfurt am Main European Commission, Brussels Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements Ms Ann-Sophie Dupont Mr Jos Meuleman Ms Aina Liepins Mr Olivier Prato Ms Magdalene Heid Mr Uwe Neumann Mr Sebastiano Laviola Mr Toshihiko Mori Mr Takushi Fujimoto Mr Satoshi Morinaga Mr Davy Reinard Mr Klaas Knot Mr Jan Hedquist Ms Camilla Ferenius Mr Martin Sprenger Mr Jeremy Quick Mr Michael Stephenson Ms Alison...
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...RISK MANAGEMENT IN BANKS The business of banking today is synonymous with active risk management than it was ever before. The success and failure of a banking institution heavily depends on the strength of the risk management system in the current environment. This is true as the very business of banking is risk-taking as an intermediary, i.e. interposing between savers (depositor) on one hand and the borrower on the other hand, thereby accepting the risks of intermediation. Risk Management: Meaning & Components A risk can be defined as an unplanned event with financial consequences resulting in loss or reduced earnings. Therefore, a risky proposition is one with potential profit or a looming loss. Risk stems from uncertainty or unpredictability of the future. In commercial and business risk generates profit or loss depending upon the way in which it is managed. Risk can be defined as the volatility of the potential outcome. Risk is the possibility of something adverse happening. Risk management is the process of assessing risk, taking steps to reduce risk to an acceptable level and maintaining that level of risk. The essential components of any risk management system are – * Risk Identification: i.e. the naming and defining of each type of risk associated with a transaction or type of product or service; * Risk Measurement: i.e. the estimation of the size, probability and timing of potential loss under various scenarios; * Risk Control: i.e....
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...Risk Management Guidelines for Commercial Banks & DFIs. Table of Contents Page No. Introduction Defining Risk Risk Management Board & Senior Management oversight Risk Management Framework Integration of Risk Business Line Accountability Risk Evaluation / Measurement Independent Review Contingency Planning 1 1 2 3 3 4 4 4 4 5 5 7 8 8 9 9 10 10 13 14 15 15 17 17 18 18 18 19 20 20 21 21 21 22 24 24 24 25 Managing Credit Risk Components of Credit Risk Management Board & Senior Management oversight Organization Structure Systems and Procedures Credit origination Limit setting Credit Administration Measuring Credit Risk Internal Risk Rating Credit Risk Monitoring & Control Risk Review Delegation of Authority Managing Problem Credits Managing Market Risk Interest Rate Risk Foreign Exchange Risk Equity / commodity price Risk Element of Market Risk Management Board and Senior Management Oversight Organization Structure Risk Management Committee ALCO Middle Office Risk Measurement Repricing Gap Models Earning at Risk &Economic Value of Equity Models Value at Risk Risk Monitoring Risk Controls Audit Risk limits 25 27 28 28 30 30 30 31 31 33 34 34 35 36 37 37 38 38 38 39 39 39 Managing Liquidity Risk Early Warning Indicators Board and Senior Management Oversight Liquidity Risk Strategy and Policy ALCO/ Investment Committee Liquidity Risk Management Process MIS Liquidity Risk Measurement & Monitoring Contingency Funding Plan Cash Flow Projections Liquidity Ratios...
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...Risk Management Guidelines for Commercial Banks & DFIs. Table of Contents Page No. Introduction Defining Risk Risk Management Board & Senior Management oversight Risk Management Framework Integration of Risk Business Line Accountability Risk Evaluation / Measurement Independent Review Contingency Planning 1 1 2 3 3 4 4 4 4 5 5 7 8 8 9 9 10 10 13 14 15 15 17 17 18 18 18 19 20 20 21 21 21 22 24 24 24 25 Managing Credit Risk Components of Credit Risk Management Board & Senior Management oversight Organization Structure Systems and Procedures Credit origination Limit setting Credit Administration Measuring Credit Risk Internal Risk Rating Credit Risk Monitoring & Control Risk Review Delegation of Authority Managing Problem Credits Managing Market Risk Interest Rate Risk Foreign Exchange Risk Equity / commodity price Risk Element of Market Risk Management Board and Senior Management Oversight Organization Structure Risk Management Committee ALCO Middle Office Risk Measurement Repricing Gap Models Earning at Risk &Economic Value of Equity Models Value at Risk Risk Monitoring Risk Controls Audit Risk limits 25 27 28 28 30 30 30 31 31 33 34 34 35 36 37 37 38 38 38 39 39 39 Managing Liquidity Risk Early Warning Indicators Board and Senior Management Oversight Liquidity Risk Strategy and Policy ALCO/ Investment Committee Liquidity Risk Management Process MIS Liquidity Risk Measurement & Monitoring Contingency Funding Plan Cash Flow Projections Liquidity Ratios...
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...AN ANALYSIS OF THE IMPACT OF RISK EXPOSURE TO THE PERFORMANCE OF BANKS IN NIGERIA CERTIFICATION I certify that this research work was carried out by MR ABOYARIN SALAMI TUNDE with Matriculation No.; 109025160 of the Department of Finance, Faculty of Business Administration, University of Lagos, Akoka, Lagos. __________________________ ______________ DR. LEKAN OBADEMI DATE _______________________ ____________ PROF. W. IYIEGBUNIWE DATE HOD DEPARTMENT OF FINANCE _______________________ ____________ EXTERNAL EXAMINER DATE DEDICATION This project work is dedicated to the Glory of ALMIGHTY ALLAH (SWT) to Him I say as always; ALHAMDULILAHI ROBIL ALAMIN!!! Special dedication also goes to the memory of my late father; Alhaji R.S.A Aboyarin. I pray his soul finds forgiveness and mercy before Allah (Amin. ACKNOWLEDGEMENT CHAPTER ONE 1.0: INTRODUCTION AND BACKGROUND TO THE STUDY Banks are germane to economic development through the financial services they provide. Their intermediation role can be said to be a catalyst for economic growth and development. The efficient and effective performance of the banking industry over time is an index of financial stability in any nation. The extent to which a bank extends credit to the public for productive activities accelerates the pace of a nation’s economic growth and its long-term sustainability. Amongst the...
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...CREDIT RISK MANAGEMENT Banks are in the business of risk management and, hence, are incentivized to develop sophisticated risk management systems. The basic components of risk management system are identifying the risks the bank is exposed to, assessing their magnitude, monitoring them, controlling/mitigating them using a variety of procedures and setting aside capital for potential losses. RBI prescribed risk management framework in terms of: a) Asset-Liability Management practices. b) Credit Risk Management. c) Operational Risk Management. d) Stress testing by Indian Banks in the perspective of international practices. BANKING RISKS: It can be categorized into: i) Business-related Risks. ii) Capital-related Risks. Business Related Risks: The business related risks to which banks are exposed are associated with their operational activities and market environment. They fall into six categories: namely, a) Credit Risk b) Market Risk c) Country Risk d) Business Environment Risk e) Operational Risk f) Group Risk Note: Market Risk comprising of interest rate risk, foreign exchange risk, equity price risk; commodity price risk and liquidity risk; Credit Risk: Credit risk, a major risk faced by banks, is inherent to any business of lending funds to individuals, corporate, trade, industry, agriculture, transport, or banks/financial institutions. It is defined as the possibility of loses associated with a diminution in the credit...
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...Financial Risk: Key Fundamentals and Case Studies Leonard Chumo, CFA, FRM Strathmore University GARP Chapter Meeting 29th July 2011 Agenda 1. Background 2. Credit Risk and the Case of Washington Mutual 3. Operational Risk and the Case of Rogue Brokers in Kenya and Barings 4. Market Risk and the Case of LTCM 5. Liquidity Risk and the Case of Northern Rock 6. Q&A BACKGROUND Main Types of Financial Risk Risk Type Definition Credit Risk The potential that a bank's borrower or counterparty will fail to meet its obligations in accordance with agreed terms. Market Risk The risk that movements in market prices will adversely affect the value of on- or off-balance sheet positions. The risk is attributable to movements in interest rates, foreign exchange (FX) rates, equity prices or prices of commodities. Operational Risk Risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. The definition includes legal risk, but excludes reputational and strategic risk. Liquidity Risk Liquidity is the ability to fund increases in assets and meet obligations as they become due. It is crucial to the ongoing viability of any organization. Source: Financial Stability Institute CREDIT RISK AND THE CASE OF WASHINGTON MUTUAL Sources of Credit Risk Apart from traditional types of loans, credit risk can also be found in a bank's: Investment portfolio ...
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...An internship report on “Credit risk management practices in Sonali Bank Ltd.” Executive Summary Sonali Bank Ltd. is the largest state owned commercial bank in Bangladesh with a total of 1203 branches. Total of 858 branch in rural and 343 branch in urban area. The functions of the bank covered a wide range of banking and functional activities to individual, firms, corporate bodies, Multinational agencies and the rural area. The bank provides more than 21 types of free services on behalf of the government of Bangladesh through its rural and urban branches as part of their commitment to society. Sonali bank Ltd. follows the rules and regulation prescribed by the Bangladesh bank. To manage credit risk, the Bank applies credit limits to its customers and obtains adequate collaterals. Credit risk in the Sonali Bank Ltd.'s portfolio is monitored, reviewed and analyzed by the Credit Risk Management (CRM). Sonali Bank Ltd. has established Asset-Liability Management Committee (ALCO) to determine the maximum risk exposure. Management is aware about guidelines of Bangladesh Bank and implemented new capital accord BASEL-II. Sonali Bank Ltd. constantly monitors, reviews and analyzes its credit portfolio to minimizing potential losses and ensuring efficient credit process. To manage the Non-Performing Loans (NPL), Sonali Bank Ltd. has a comprehensive remedial management policy, which includes a framework of controls to identify weak credits and monitoring of these accounts constantly...
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...LONDON SCHOOL OF BUSINESS AND FINANCE CREDIT RISK MANAGEMENT OF NON-BANKING FINANCIAL INSTITTUTION IN GHANA (A CASE STUDY OF TF FINANCIAL SERVICES) BY STEPHEN KWADWO NTIRI A Thesis Submitted to the London School of Business and Finance in Partial Fulfilment of the Requirement for the MBA Degree in Financial Services MARCH 2010 DECLARATION I Stephen Kwadwo Ntiri hereby declare that except for references to other people’s work, which have duly been acknowledged, the work presented here was carried out by me, MBA student of Financial Servies at the London School of Business and Finance (LSBF), under the supervision of Randolph Metz-Johnson. I also declare that this work has never been submitted partially or wholly to any other institution for the award of a certificate. …………………………………………… ……………... Stephen Kwadwo Ntiri Date (Student) ………………………………………… …………… Randolph Metz-Johnson Date (Supervisor) Dedication This research project is dedicated to Almighty God for His abundant blessings and protection given me throughout this study, and also to my family for the support I received from them. Acknowledgement I am most grateful to Almighty God who through His infinite mercy and love guided me throughout the duration of the programme. I wish to acknowledge the help and encouragement I got from the entire staff of TF Financial Services, especially Mr. Benjamin Turkson, which has enabled me to complete this work. I also want to thank my wife, Esther Yamoaba...
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...Introduction Risk is the element of uncertainty or possibility of loss that prevail in any business transaction in any place, in any mode and at any time. In the financial arena, enterprise risks can be broadly categorized as Credit Risk, Operational Risk, Market Risk and Other Risk. Credit risk is the possibility that a borrower or counter party will fail to meet agreed obligations. Globally, more than 50% of total risk elements in banks and Financial Institutions are Credit Risk alone. Thus managing credit risk for efficient management of a Financial Institutions has gradually become the most crucial task. Credit Appraisal is a process to ascertain the risks associated with the extention of the credit facility. It is generally carried by the financial institutions which are involved in providing financial funding to its customers. Credit risk is a risk related to non repayment of the credit obtained by the customer of a bank. Thus it is necessary to appraise the credibility of the customer in order to mitigate the credit risk. Corporate and small & Medium Enterprise (SME) plays a pivotal role in the economic growth and development of a country. Actually, they work as the platform for job creation, income generation, and development of forward and backward industrial linkages and fulfillment of local social needs. The credit appraisal process for Corporate and SME Division evaluate the creditworthiness of the respectivee client and helps in identification, measurement,...
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