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COMPLIANCE OF BASEL CREDIT RISK MANAGEMENT PRINCIPLES IN UAB BANK LIMITED
- This thesis intends to identify credit risk management of UAB and analyses the compliance status of Basel credit risk management principles in UAB. To explore these objectives, the descriptive method is used, and secondary data are collected from Central Bank of Myanmar, Internet website, Library and UAB annual report. Regarding of objectives, it found that credit risk management in UAB is very effective and comply with Basel credit risk management principles. Appropriate credit risk environment is established as per Basel credit risk management principle topic no.1. Policies and procedures are clearly defined, ceiling of loan segments is set, and loans spread to different industries, different business segments and different geographical areas. Procedure for granting new loans and renew loans are in place and delegation of lending authority is given to different authority levels. Credit recovery and follow up procedures are in place and NPL is well controlled. UAB adopts 3-Tier ratings system and it found very effective in controlling NPL. Appropriate credit administration, measurement and monitoring process are maintained. However UAB needs to practice more international Credit risk assessment methods such as moving to latest Basel Guidelines on credit risk capital, provision requirements, insist for more documentary evidences on financial status of the borrowers to assess real financial strength of the borrower to reduce collateral requirements, introduce more loan products suitable for various industries, ensure proper usage of funds disbursed to borrowers, more stringent follow up methods etc.
Zin Mi Chit Po (MBF - 88)
- Yangon University of Economics