Term paper a study on Audit risk in promoting financial transparency and accountability Course Title: Research Methodology
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Quantitative Analysis For Management 11t (1)
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Objectives:After completing this paper, we will get: The reason for default loan in banking sector of Bangladesh. For a sound Banking system, the importance of efficiency and effectiveness of governing body. The topic of this discussion examines the legal implications of obtaining loans from defaulting parties. The probable solution of reducing default loan in Banking sector of Bangladesh Literature review:Debt control system enhances the economic structure in the economy. If you considered the fact that bank is the biggest money circulator in the economy. If that money controls system collapse, the full economy collapses instantly. It has been stated that in the year 2008, there was a great collapse in the economy of USA, also known as great depression, due to non-perfuming loan (NPL) (Calomiris, 1993). Bangladesh currently faced similar types of threat as estimated NPL is 1 lakh 34 thousand crore tk. According to (Rahim, 2022) assertion, the issue of loan default has resulted in significant challenges within the banking industry of Bangladesh. Empirical evidence suggests that nonperforming loans are primarily influenced by interest rate, credit size, and borrower income. The presence of nonperforming loans (NPL) poses a hindrance to the profit-making capacity of banks, thereby exerting an impact on the overall economy. (Chowdhury & Dhar, 2018) identified several contributory factors, including credit management, credit laws, and the degree of political intervention, in their report. The loan distribution methods employed by state-owned commercial banks were deemed inadequate in achieving the required recovery objective. Empirical evidence suggests that state-owned commercial banks are comparatively more susceptible to the various contributing factors than their privately owned counterparts. Non-performing loans (NPLs) are an inevitable aspect of banking operations owing to the inherent risk associated with extending credit. Thus, it is imperative to employ a sturdy governance structure and efficient legislation to minimize the repercussions of non-performing loans to the maximum degree feasible. The study will center on the lending and deposit systems of the bank. Download 47.7 Kb. Share with your friends:
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