Loan Classification, Provisioning and Debt Default Trend in Mercantile Bank Limited

15739 Words Jan 28th, 2010 63 Pages
LOAN CLASSIFICATION, PROVISIONING AND DEBT DEFAULT TREND IN MERCANTILE BANK LIMITED

SECTION – 1

INTRODUCTORY PART

1.1 Preface

Now a day present world especially the Asian countries are going through an economic recession. Though the Asian economic crisis began few years back and it is some how tackled today but the 11 September incident aggravated the disorder in the economic infrastructure of our country. Our economy is much dependent on foreign aids. The World Trade Centre incident created a negative impact on our economy as the foreign aids to Bangladesh have been reduced a lot. Therefore the government is trying to deal the economic crisis by generating revenue internally. In this aspect the importance of the financial
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They are listed below:

Management of MBL Management of Bank Asia Limited Bangladesh Bank Bangladesh Institute of Bank Management Different books and publications

1.7 Limitations

Presently loan classification has become a burning question for the overall banking sector. The monitoring of the central bank is also intensified. All the information and data are collected from the bank might not reflect actual figure due to its sensitivity of nature. The loan classification trend is a vast subject requires detail study, which is not carried out due to time constraint of the internship program. MBL is extremely new in the banking sector, having a negligible amount of classified loan; therefore its debt default trend may not match with the mainstream of classified loan.

1.8 Report Preview

This paper discusses mainly the general banking activities and trend of loan classification in MBL. As it is an internship report and for academic purpose first two sections deal with overall banking
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