Abstract

Banks undergo various types of risks throughout the process. Sometimes these risks can affect the profitability and reputation of the business. It is necessary for all the banks operating all over the world to establish risk management strategy to work smoothly. To achieve the financial soundness, it is necessary to align the risk a bank can face in a structural manner. This is referred as bank strategy that is an integral part of any banking business. Of various risk associated, the banks are mostly affected by the credit risk, which means failure of payment of loan. To avoid the risk of default it is essential for the bank to assess the different credit risk assessment methods designed to evaluate the loan performance

Description