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Banks offer various credit products to meet customers’ diverse financing needs. These products are designed to support working capital requirements, fixed asset investment, import-export trade, consumer financing, and Islamic banking activities. Each product has its own purpose, tenure, and repayment…

A good borrower is one a bank can safely lend to. The bank must be confident that the loan will be repaid fully and on time. The following qualities define a good borrower: Creditworthiness A good borrower has a strong…

Banks can manage credit through a centralized model where the head office controls all lending decisions, or a decentralized model where branches have their own decision-making authority. Differences between Centralized and Decentralized Credit Models Have a look at the differences…

Credit policy is a set of rules and regulations that guides the lending decisions of a bank. It is formulated in line with the Bangladesh Bank’s regulatory guidelines and the bank’s own strategic objectives. The primary purpose of a credit…

The relationship between a banker and a customer is based on mutual trust, confidence, and good faith. This is known as a fiduciary relationship. When a person opens an account, a legal relationship is created between the bank and the…

Credit is one of the most important functions of a commercial bank. Commercial banks in Bangladesh mainly provide two types of credit facilities: Funded Credit Facilities and Non-Funded Credit Facilities. Funded Credit Facilities Funded credit is a type of credit…