Banking
Credit Risk Management in Banking
Credit Risk Management is importand in Banking. Credit risk refers to the risk arising out of an individual counter-party (a borrower or a lender) failing to meet or being prevented […]
Credit Risk Management is importand in Banking. Credit risk refers to the risk arising out of an individual counter-party (a borrower or a lender) failing to meet or being prevented from meeting its obligations. In other words, this is a risk that a borrower of a bank makes defaults in his/her repayment (of principal and/or interest) obligations in accordance with agreed terms. There is always scope for the borrower to default from his commitments for one or the other reason resulting in crystallization of credit risk to the bank. Credit risk arises most obviously in the potential for default on the part of persons or institutions borrowing.
Credit Risk has two components: transaction risk, and portfolio Risk. We can further divide transaction risk into risk of default and risk of borrower downgraded due to delayed payment or other criteria. Also, we can divide portfolio risk into Concentration Risk, and Intrinsic risk.
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ldmahat
LD Mahat is a Chartered Accountant, Financial Adviser and Risk Management Specialist possessing over 29 years of diverse experience across several sectors covering a wide spectrum of assurance, business advisory and taxation disciplines. LD is a committed, highly motivated and result-oriented professional, consistently developing and nurturing client relationship and building long-lasting relationships with diverse clients. He has the ability to define issues, propose customized solutions that significantly add value and contribute to client’s success.
LD has got master’s in risk management form New York University, Stern Business School. He has undergone executive education at Harvard Business School and Insead Business School. He was risk management specialist in several Asian Development Bank Funded projects. He has provided risk management advisory services in various Nepalese corporate sectors.
LD has worked on large projects jointly with big 4 international accounting firms ~ PwC, Deloittee, Ernst & Young and KPMG in the field of Assurance, Diagnostic Review, Capacity Building, e-Government Procurement, e-Governance, Special Review, Investment Climate, and IFRS Implementation.