Former adviser to caretaker government Syed Manzur Elahi Saturday laid emphasis on proper credit risk management by banks, saying that the size of Bangladesh economy presently stands at US$ 100 billion which could have been double to 200 billion with better management of fund by the commercial banks. “The Credit Risk Management by the banks is significantly important as they are utilizing public money for proving credit for investment,” said Manzur Elahi, also the chairman of Apex Group, while speaking at the inaugural session of the ICC workshop here.
International Chamber of Commerce (ICC)-Bangladesh organised the workshop on Credit Risk Management.
The rate of Non-Performing Loans (NPL) of the state owned banks are the highest followed by Private Commercial Banks (PCBs) and Foreign Banks (FBs), he said, adding that as a result the liquidity gets affected which is ultimately hampering investment in development projects by the banks.
Manzur Elahi appreciated the Bangladesh Bank (BB) Manual of Credit Risk, which, he said, was very comprehensive and if properly followed by banks it would definitely help reduce credit risk.
“It will also help better management of fund. Bangladesh Bank should build up more professional capacity and increased manpower to monitor the risk,” he suggested.
He, however, has apprehension that it would be difficult for the BB to monitor liquidity closely as more banks are entering in the financial market in future.  Prof. Mamun Rashid, a noted money market critique, emphasized the need for appropriate tools and mechanism to mitigate the Credit Risk Management as it is not possible to eliminate credit risk totally.  He also urges to ensure proper management of Credit Risk as well as best utilization of resources.
Prof. Mamun thanked the HSBC Bank for their cooperation to organize the workshop. The workshop will provide participants with an overview of best practices in credit risk management and how to avoid unexpected losses, he said, adding that participants would also be able to benchmark their institution against industry best practices. Emphasis will be given on corporate credit risk management, he added.
Johnson Chang, Credit Risk Officer, HSBC Bangladesh, who is also the resource person of the workshop, spoke at the inaugural session. Among others, ICCB Secretary General Ataur Rahman also spoke in the workshop. A total of 68 senior and mid-level executives from banks and financial institutions attended the workshop. A similar workshop will be held in Chittagong on March 25.

The Independent/ Bangladesh/ 25-03-12