Central banks and financial crises Willem H.

Buiter

The paper draws lessons from the experience of the past year for the conduct of central banks in the
pursuit of macroeconomic and financial stability. Macroeconomic stability is defined as either price
stability or as price stability and sustainable output or employment growth. Financial stability refers to
(1) the absence of asset price bubbles, (2) the prevention or mitigation of systemically significant
funding illiquidity and market illiquidity and (3) the prevention of insolvency of systemically important
financial institutions. The performance of the Fed, the ECB and the Bank of England is evaluated in terms
of these criteria. The Fed is judged to have done worst both as regards macroeconomic stability and as
regards one of the two time dimensions of financial stability: minimizing the likelihood and severity of
future financial crises. As regards ‘putting out fires’ (dealing with the immediate crisis), the Bank of
England gets the wooden spoon for its early failure to perform the lender of last resort and market
maker of last resort roles.

Loan Processing, Credit Appraisal, Follow-Up &Recovery Procedure of IFIC Bank Limited by

BRAC Business School BRAC University

Banking system of Bangladesh has through three phases of development Nationalization, Privatization
and lastly Financial Sector Reform. IFIC Bank Limited has started its journey as a private commercial
bank on June 24, 1983.As a part of my under graduation program, have completed my internship in this
organization. Throughout the period of my internship, I hadbeen working in several departments.
However, I was officially appointed to work in the creditdepartment. The report will reveal the
background of the company, description of the loans,findings and recommendations based on the
experience gathered. One of my major responsibilities was to assist the clients in opening new accounts.
Alongside, my work was limited to Account opening section, Bills and clearing section. I had been given
access to unique software, called MYSIS. I would be required to log in with username and password, and
then search for specific clients. In one hand, I was assigned to provide account opening related
information to the new customers. Every day, one of my responsibilities was to capture new or existing
information related to account opening and then, disseminate those information to the clients who are
interested to open accounts in IFIC BANK. On the other hand, I was assigned to keep a database of the
information collected. Alongside, I prepared and fill up new and existing files for the department.

CREDIT APPRAISAL SYSTEM IN BANKING SECTOR CH.MANJULA ASSISTANT PROFESSOR SRIDEVI

WOMEN’S ENGINEERING COLLEGE HYDERABAD. TELANGANA STATE.

Credit appraisal is the process of accepting or rejecting the proposal for finance from the public carried
out by department of credit of the banks. Finance is required at every stage of business either for
meeting day to operations or for starting up a new project. One of the important sources of raising
finance is loans from banks. Commercial lending is one of the prime functions of any bank. The fund of
depositors i.e, general public are mobilized by means of such advances/investments. Thus it is extremely
important for lender bank to assess the risk associated with credit, thereby ensure the fund deposited
by depositors. This paper describes and gives the idea about How does the bank appraises the
 creditworthiness of a borrower? What are the criterions to be fulfilled for granting loans? These
questions are being answered in this paper.

An Overview of Credit Appraisal System with special reference to Micro Small and Medium Enterprises
(MSME)

Ms. Sugandha Sharma Assistant Professor Jagan Institute of Management Studies, Rukmini Devi Institute
of Advanced Studies, New Delhi Ms. Pooja Kalra Assistant Professor Jagan Institute of Management
Studies, Rukmini Devi Institute of Advanced Studies, New Delhi

The Credit Appraisal is a complete exercise which starts from the time a potential borrower walks into
the branch and concludes in credit delivery and monitoring with the objective of certifying and
maintaining the quality of lending and managing credit risk. Credit appraisal is the assessment of the
viability of proposed long term investments in terms of shareholder wealth and the formal analysis of all
project costs and benefits which is used to justify the project proposal. The bank has over the years
designed and adopted the Best Practices Code. This in effect represents the bank's philosophy towards
effective Corporate Governance. The liberalization of the financial sector demands a new technology to
cope with the rising pressures on the profitability of banks and financial sector institutions. Analyzing
lending strategies, credit appraisal, risk analysis and lending decisions, while keeping in mind the broad
framework of corporate banking strategy, this book emphasizes that lending is no longer an activity
restricted to the assets side of the balance sheet. An invaluable tool for practicing managers and
students of business and financial management, this book demands no prior specialized knowledge of
the subject, taking readers from the rudiments of credit appraisal to advanced levels of decision making.
Numerous examples from the world of business have been provided to facilitate a better understanding
of the vast and significant changes in the financial market. The objective of credit analysis is to look at
both the borrower and the lending facility being proposed and to assign a risk rating. The risk rating is
derived by estimating the probability of default by the borrower at a given confidence level over the life
of the facility, and by estimating the amount of loss that the lender would suffer in the event of default.

Credit appraisal determines your loan eligibility

By 
Ashish Gupta
Acredit appraisal is an important part of determining the eligibility for a home loan, and the quantum of the loan. A
prospective borrower has to go thorough the various stages of the credit appraisal process of the bank. Each bank
has its own criteria to satisfy itself on the credit worthiness of the borrower. 

The eligibility for the loan that a person can get depends on his credit worthiness, determined in terms of the norms
and standards of the bank. Being a crucial step in the loan process, a borrower needs to be careful in planning his
financing modes. The credit worthiness, basically, assures the repayment capacity of the borrower - whether the
borrower is capable of repaying the loan and dues on time. 
 PROGRAMME on “CREDIT APPRAISAL” (Industrial and Commercial Advances other than SMEs) by

Leadership Center, Indian Institute of Banking & Finance, Kohinoor City, Commercial II, Tower 1, 3rd
floor, Off LBS Marg, Kirol Road, Kurla (W), Mumbai – 400070.

During its 84 years of service, IIBF has emerged as a premier institute in banking and finance education.
Considering the emerging requirements of the bankers in the ever changing dynamic environment, IIBF
has started providing training programmes in selected areas. IIBF has world class training facilities at its
Leadership center. PURPOSE The program envisages competence building among the participants by
improving their appraisal skill and enhancing their knowledge level. The program takes the participants
through logical journey right from collection and scrutiny of loan application to the credit decision
making, with emphasis on interactions, group discussions, sharing of experience and exercises, apart
from the traditional training methods. During the course of the Program, the participants are taken
through the entire gamut of the credit appraisal process enabling them, to return to their work place
with added confidence in handling credit proposals. This program on Credit Appraisal (Industrial and
Commercial advances) has been designed taking in to account the bankers need in the area of credit.