| Author | Acharya, Hem Kumar |
| Note | A research project submitted in partial fulfillment of the requirements for the
Degree of Professional Master in
Banking and Finance, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | The linkage of non-performing loans to performance of banks is already well established, and studied have been done by various scholars in different countries linking NPLs to credit risk management practices. It was found that Bhutan was one country where such study is lacking, and this is an attempt to make some headway into this field, for Bhutanese banks.
This paper attempts to find out what practices were followed by banks in Bhutan for administration of credit, and whether the credit risk management practices followed by them were in line with international best practices, and also whether what they followed was effective for them. The study has also focused on the factors contributing towards credit risk in Bhutan, and whether any steps could be taken to mitigate those.
One of the important results this study found was the lack of proper and timely credit information of customers that may need to be addressed by the credit information bureau of Bhutan, and the need to introduce risk-based loan pricing system to reduce credit risk. The requirement to have more skilled personnel at banks so that better financial analysis procedures were followed, was another. |
| Year | 2013 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Venkatesh, Sundar; |
| Examination Committee(s) | Wijewardena, Weerakoon A. ;Badir, Yuosre ; |
| Scholarship Donor(s) | Bank of Bhutan, Ltd.; |