Md Monirul Islam
What is Asset Liability Management (ALM)? Asset Liability Management (ALM) is an essential process for banks that manages the risks arising from mismatches between assets and liabilities on the balance sheet. It aims to ensure maximum structural balance sheet stability…
Md Monirul Islam
According to Bangladesh Bank’s Credit Risk Management guidelines, the following are key indicators of poor credit risk management: Absent or Flawed Credit Culture The bank lacks a sound credit culture — or the existing culture is materially flawed. Strategic and…
Md Monirul Islam
According to Bangladesh Bank’s Credit Risk Management guidelines, the following are key indicators that a bank’s credit portfolio carries high risk: The level of loans is high relative to total assets and equity capital, indicating overreliance on lending. Loan growth…
Md Monirul Islam
Credit risk is the probability that a borrower will not be able to pay accrued interest or repay the principal amount of a loan according to the terms specified in the credit agreement. It is the core risk in banking…
Md Monirul Islam
Bangladesh Bank has issued guidelines covering six core risk areas that every bank must manage. These guidelines collectively form the regulatory framework for risk management in Bangladesh’s banking sector. The six core risk management guidelines issued by Bangladesh Bank are:…
Md Monirul Islam
Managing operational risk is a challenging task for banks in Bangladesh. Operational risk can originate from activities at every level — from the Board of Directors down to the desk officer. The key challenges are: Policy and Framework Gaps The…