Md Monirul Islam
Bangladesh Bank introduced the Internal Credit Risk Rating System (ICRRS) to measure borrowers’ creditworthiness objectively and consistently. The system helps banks to assess credit risk before approving or renewing credit facilities. Different sectors have different characteristics. They differ in terms…
Md Monirul Islam
Financial statement analysis uses different analytical tools to evaluate a company’s financial performance and position. The three most commonly used tools are discussed below: Horizontal Analysis (Trend Analysis) Horizontal analysis evaluates financial data over a period of time. It measures…
Md Monirul Islam
Purposes of Credit Investigation Credit investigation serves several important purposes. It helps the bank make safe and informed lending decisions. The main purposes are as follows: Confirming the Borrower’s Character Credit investigation verifies the borrower’s integrity, reputation, and willingness to…
Md Monirul Islam
From the reporting entity’s viewpoint, financial statements are the means of reporting economic activities to stakeholders. From the investor’s viewpoint, they are a source of reliable information for economic decisions. As per International Accounting Standard-1 (IAS-1), a complete set of…
Md Monirul Islam
A credit proposal is a summary of all information collected during a credit investigation. It helps the approving authority make an informed credit decision. A good credit proposal must be complete, accurate, and well-structured. Features of a Good Credit Proposal…
Md Monirul Islam
Introduction Credit investigation is a systematic process through which a bank collects and evaluates information about a borrower before granting a loan or other credit facilities. The primary objective is to assess the borrower’s creditworthiness, repayment capacity, and associated risks…