Presentation Topics Credit risk analysis of One Bank Ltd

Course Title: Financial Market and Institutions Corse Code: 604 Program: EMBA Department of Banking and Insurance University of Dhaka

Group Members
Name
1. 2. 3. 4. 5. Shuvra Dey Chinmoy Das A.K.M. Shaziduzaman Partha Protim Bishwas Ali Tasbin Haque Riyad

Id
51221055 512210 512210 512210 512210

ONE Bank Limited

ONE Bank Limited was incorporated in May, 1999 With the Registrar of Joint Stock Companies under the Companies Act. 1994, as a commercial bank in the private sector.The Bank is pledge-bound to serve the customers and the community with utmost dedication. The prime focus is on efficiency, transparency, precision and motivation with the spirit and conviction to excel as ONE Bank in both value and image.

Risk
Risk is the uncertainty which will happen in future and causes loss for individual or Business organization. In terms of bank risk is the thing which associated with time and amount of cash flows. Future is uncertain we can only predict it. So we have to take some steps against these risks to reduce its severity.

Key Banking risk

Credit Risk Market Risk Operation Risk

Credit
The word credit comes from the Latin word Credo meaning I believe. It is a lenders trust in a persons/ firms/ or companys ability or potential ability and intention to repay. In other words, credit is the ability to command goods or services of another in return for promise to pay such goods or services at some specified time in the future. For a Bank, it is the main source of profit and on the other hand, the wrong use of credit would bring disaster not only for the bank but also for the economy as a whole.

Credit Risk
Credit risk is the risk or potential of loss that may occur due to failure of borrower/counterparty to meet the obligation on agreed terms and conditions of financial contracts.

Credit Risk Basics

Credit risk is the risk of loss that may occur from failure of the counter-party to make payments. Reduction in the ability of counterparty to make payments. Credit risk could be on account of: Default Risk: Obligor cannot service debt obligations. Spread Risk: Because of changes in the credit quality of the obligor.

Credit risk/Default risk for counterparty arises from

Basic principal of credit Risk Management

Establishment an appropriate credit risk environment. Operating under a sound credit granting process. Maintaining an appropriate credit administration, risk measurement and monitoring process. Ensuring adequate controls over credit risk. Role of bank supervisors in ensuring that banks have a effective system in place to identify, measure, monitor and control credit risk

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