Study on the Credit Management Function in Commercial Banks in India | Original Article

ABSTRACT:

Risk is intrinsic aspect of bank's business. Powerful risk management is basic to any bank for accomplishing budgetary sufficiency. Taking into account this, adjusting risk management to bank's authoritative structure and business technique has gotten essential in banking business. Credit risk is the bank's risk of misfortune emerging from a borrower who doesn't make installments as guaranteed. For example, occasion is called as default. Another expression for credit risk is default risk. The risk of loss of head or loss of a budgetary prize originating from a borrower's inability to reimburse a loan or otherwise to meet an authoritative commitment is named as credit risk. Credit risk emerges at whatever point a borrower is hoping to utilize future incomes to pay a current obligation. Banks are made up for expecting credit risk by method of premium installments from the borrower or backer of an obligation commitment.