| Article Name : | |
| DEFAULT RISK MANAGEMENT IN LOCAL AREA BANKS - CASE STUDY OF KBS BANK LTD |
| Author Name : | |
| Mustari Hanmanth. N |
| Publisher : | |
| Ashok Yakkaldevi |
| Article Series No. : | |
| GRT-3646 |
| Article URL : | |
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| Abstract : | |
| The default risk arises from a borrower's failure to pay interest or principal or both on loans and securities as promised. It is the potential that a bank borrower/counterparty fails to meet the obligations on agreed terms. There is always scope for the borrower to default from his/her comments for one or other reason resulting in crystalisation of credit risk to the bank. Credit risk is inherent to the business of lending funds to the operations linked closely to market risk variables. The objective of credit risk management is to minimize the risk and maximize bank risk adjusted rate of return by assuming and maintaining credit exposure within the acceptable parameters. |
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