INTERNSHIP REPORT
ON
CREDIT RISK MANAGEMENT OF
DHAKA BANK LIMTED

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EXCELLENCE IN BANKING

DEPARTMENT OF FINANCE & BANKING
UNIVERSITY OF CHITTAGONG
CHITTAGONG.

CREDIT RISK MANAGEMENT OF

Preface

The banking sector of Bangladesh is dominated by commercial banks with huge debt burdens. Inefficiency in loan sanctioning, expansion of preferential loans, and poor classification and administration of loans has led to the slow recovery of credit extended by the banks. To restore efficiency and accountability in this sector, an effective credit risk management system is necessary. To manage credit risk efficiently Bangladesh Bank has provided a guideline for CRM. Besides, Basel Committee on Banking Supervision has set a guideline on Sound credit risk assessment and valuation for loan in order to encourage banking supervisors globally to promote sound practices for managing credit risk. This paper presents a comparative picture of credit risk management of Dhaka Bank Limited with Bangladesh Bank’s guidelines and Basel Committee for Banking Supervision’s (BCBS) guideline regarding Credit Risk Management. This report also provides an overview of the Credit Risk Management of DBL.

In this report DBL’s credit risk management system is analyzed into three sections. First of all the policy guidelines have been analyzed and compared with Bangladesh bank’s guideline. After that the organizational structure & responsibilities have been analyzed in line with guidelines of Bangladesh Bank. Then the procedure of DBL’s lending system have been analyzed and compared in line with Bangladesh Bank’s guideline. Simultaneously, how DBL’s Credit Risk Management System complies with the principles of Basel Committee on Banking Supervision is also seen in this study. Finally, some recommendations are provided to improve the current Credit