Internal Credit Risk Rating System (ICRR) training centre in Bangladesh

New

Internal Credit Risk Rating System (ICRR)

  • Date : 26 May - 02 June 2022
  • Duration : Evening(7.30 PM-10.30 PM)
  • No. of Classes/ Sessions : 3 Sessions
  • Class Schedule : Tuesday & Thursday
  • Total Hours : 9
  • Last Date of Registration : 25 May, 2022 ( within 5pm )
  • Venue : Online Virtual
  • 10% Off on Bkash or Online Bank payment (Card)

Introduction

The banking profession today is a nice career for all students from the commerce, economics, and accounts domains. Internal Credit Risk Rating System (ICRR) is nowadays one of the most spoken topics in the banking sector. This training on Internal Credit Risk Rating System (ICRR) is designed in such a way for the business graduates who are interested to start their careers in banks and other financial institutions and also existing bankers.The aim of credit risk management is to maximize a bank’s risk-adjusted rate of return by maintaining credit risk exposure within acceptable levels. Banks need to manage the credit risk inherent in the entire portfolio as well as the risk in individual borrower transactions. The effective management of credit risk is a critical component of a comprehensive approach to risk management and is essential to the long-term success of any banking organization. Since exposure to credit risk continues to be the leading source of problems in banks, banks should have a keen awareness of the need to identify, measure, monitor, and control credit risk as well as to determine that they hold adequate capital against these risks and they are adequately compensated for risks incurred. The Internal Credit Risk Rating System describes the creditworthiness of the borrower of a particular sector based on the assessment criteria set for that sector. Since the leverage, liquidity, profitability, as well as other quantitative and qualitative indicators, vary significantly from sector to sector, the ICRRS is developed to calibrate such diversities into the rating system.ICRR refers to the system to analyze a borrower’s repayment ability based on information about a customer’s financial condition including their liquidity, cash flow, profitability, debt profile, market indicators, industry and operational background, management capabilities, and other indicators.

Methodology

Interactive Lecture
PowerPoint Presentation
Group Discussion

Contents of Training:

Contents: ICRRS
1. Background

2. Key Points of ICRRS

i. Applicable credit exposure.
ii. Quantitative & Qualitative parts of ICRRS.
iii. Segmentation of Business for ICRRS.
iv. Templates for assessment.
v. Distribution of Scores.
vi. Rating Scales.
vii. Required quality of Financial Statements.
viii. Schedule for conducting ICRRS.
ix. ICRR in Multiple Line of Business.
x. Significance of Cash Flow Analysis in ICRRS.

3. Management Action Triggers

i. Where to allow loan.
ii. Special guideline for “Marginal” & “Unacceptable” cases.
iii. Special emphasis on Quantitative part.
iv. Special Significance on Audited Balance sheet.

4. Exceptions:

i. For Types of loans.
ii. For amount of loan.
iii. For types of Financial Institutions.
iv. For “New” business establishments.
v. For group conglomerates.

5. Modifications of ICRRS by circulars of Bangladesh Bank.

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This course is designed for the business graduates who are interested to start their career in banks and other financial institutions and also existing bankers.

Resource Person

Md. Zakir Hossain

DMD

Md. Zakir Hossain is the Deputy Managing Director (DMD) of Mercantile Bank Limited with experience of about 28 years in the banking industry of Bangladesh. He started his banking career in 1993 with Janata Bank- the 2nd largest state-owned Commercial Bank of Bangladesh as Financial Analyst in the position of Senior Officer. Thereafter, he moved to Prime Bank Limited in 1995 and served there as Credit Officer in Credit Risk Management Division till 1999. Then Mr. Zakir joined Mercantile Bank Limited in June 1999. He has been serving MBL since its inception in various capacity and positions at Branch and Head Office. He was the Deputy Chief Business Officer (DCBO) and Chief Operating Officer (COO) of Mercantile Bank. As DMD he supervised several Divisions like Corporate Banking Division, Agriculture Credit Division, SME Financing Division, Research & Planning Division and Islamic Banking Division of Mercantile Bank. At Present, he is the Head of Chattogram Region of this Bank. He has experience of working as a member of the committee for Review of Credit Risk Management Guidelines and of the committee for formulation of guidelines for Internal Credit Risk Rating (ICRR) System of Bangladesh Bank. Mr. Zakir is a Finance graduate from University of Dhaka with major in Banking. Alongside the banking career, he has academic track also. He is associated with BD jobs as professional trainer and was adjunct Faculty of reputed private Universities. Main focus of banking experience of Mr. Zakir is project finance and corporate business.
He started his banking career in 1993. During this 20 years long journey, he served with Janata Bank (1993-1995), Prime Bank ltd.(1995-1999) and then with Mercantile Bank Ltd. since 1999. Most part of his job was as the Financial Analyst and Credit Officer. For the last 12 years he has been serving as the Branch Manager.
Mr. Zakir has an excellent academic background. He has obtained several significant training in the field of Credit Management, Lending Risk Analysis, Factoring & Venture Financing, Industrial Project Financing, Anti Money Laundering, SME, BASEL-I & II both at home and in abroad. He is the regular trainer of Mercantile Bank Training Institute (MBTI).

Interactive Lecture
PowerPoint Presentation
Group Discussion



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