Chitra, B and Vani, U (2014) Credit Risk Management for Banking. International Journal of Science and Research, 3 (3). pp. 135-137. ISSN 2319-7064

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Credit risk or default risk involves inability or willingness of a customer if counterparty to meet commitments in relation to lending, trading, hedging, settlement and other financial transactions. The Credit Risk is generally made up of transaction risk or default risk and portfolio risk. The portfolio risk in turn comprises intrinsic and concentration risk. The credit risk of a bank’s portfolio depends on both external and internal factors. Credit Risk Management has always been on the radar of the top management of any company, but at no other time has its relevance been more felt by financial institutions that in the current business scenario – plagued by increasing competition; and the great nemesis – the subprime lending crisis. In the age of advancing and complex risk transfer mechanisms, it may make sense to step back and take a look into the very basics of Credit Risk Management. By
understanding the overall lifecycle of a typical Credit Risk
Management process, the management can identify the key
priority areas and challenges in the credit risk arena and
solution can be designed to tackle.

Item Type: Article
Divisions: PSG College of Arts and Science > Department of Commerce
Depositing User: Mr Team Mosys
Date Deposited: 04 Mar 2022 11:02
Last Modified: 04 Mar 2022 11:02

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