The Importance of Credit Risk Management for Banking

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well, banking is all about financil risk and rewards, the banks need of have various products for their customers for various financial needs. as far as loans are considered, u are right, banks need to have a number of products, the interest rates still can be competative if the initial screening as far as the risk is considered in not comprised upon. Presently the bank teams, in an effort to get numbers, sometimes necessarity not take sufficient detailed informations which may effect the risk , and hence they land in bad loan. Keep good risk checks , and still competative interests can be worked out.  

Banks must adopt a more objective method of pre sanction credit assessment, rather than the existing system of pure financial analysis and security cover, bench mark ratios etc.As is seen in many cases, a debt becomes unrealisable on account of many para financial factors, rather than pure financial performance. Even BASAL II does not fully address this issue. 

Good one...but how can we get to know about investment into bank and investment by bank?, it is stated over there in balance sheet but that not gives clear picture of timing of loan and investment.

when bank becomes insolvency then there is no risk
Thank you for sharing

hello i'm writing dissertation on How banks relates credit risk management while lending SME's in india? soo just need help if anybody could help :)

regds

thanks sir for sharing it. To managing the credit risk is critical component and it is essential for long term success or survive of any banking organization. But the question arises how to manage the credit risk in best way........

Thanks for sharing sir , 
Effective credit risk management is vital for success of any bank, as banks are  operating at a low margin compared to other business. They  Should strike a proper balance between profitability and liquidity and should always be careful about default probability and Credit Value at risk. Especially here in India, attaching is not an easy process.

Its very true sir.
Thanks for sharing.

Please put only IT related articles here.

Thanks for sharing....