This study aims to unveil the bank’s attitude towards credit and investment management. In Bangladesh there is mainly two categories banking system that is Islamic Banking system and conventional Banking system. Those system has totally different credit and investment policy. Islami Bank is based on Sharia. So, they invest as a partner of any business organization. As a result, it is sharing their profit not the interest. On the other hand, conventional bank based in interest system. So, their investment and credit policy are totally different from each other. In this research we investigate the relationship of credit or investment initiates and profitability of bank. We used secondary research method in completing this relationship of which we collect qualitative data from different sources.This study aims to unveil the bank’s attitude towards credit and investment management. In Bangladesh there is mainly two categories banking system that is Islamic Banking system and conventional Banking system. Those system has totally different credit and investment policy. Islami Bank is based on Sharia. So, they invest as a partner of any business organization. As a result, it is sharing their profit not the interest. On the other hand, conventional bank based in interest system. So, their investment and credit policy are totally different from each other. In this research we investigate the relationship of credit or investment initiates and profitability of bank. We used secondary research method in completing this relationship of which we collect qualitative data from different sources.This study aims to unveil the bank’s attitude towards credit and investment management. In Bangladesh there is mainly two categories banking system that is Islamic Banking system and conventional Banking system. Those system has totally different credit and investment policy. Islami Bank is based on Sharia. So, they invest as a partner of any business organization. As a result, it is sharing their profit not the interest. On the other hand, conventional bank based in interest system. So, their investment and credit policy are totally different from each other. In this research we investigate the relationship of credit or investment initiates and profitability of bank. We used secondary research method in completing this relationship of which we collect qualitative data from different sources.

1. Name ID
Jahid Khan Rahat 145159
Nabila Rumman 145154
Nazmul Kabir 145155
Md. Asifur Rahman 145156
Effective Credit
& Investment
Management of
Bangladesh

2. Introduction
The process of granting credit
Setting the terms to recover the credit
Ensure compliance with Bank policy

3. Investment Management
 Controlling Bad
Debt
 Ensuring Sufficient Assets against Credit
 Monitoring and Projecting Cash Flow
 Setting Credit or Investment Limits
 Initiating Legal or Other Recovery Actions
 Hiring Qualified Credit or Investment Analyst

4. Controlling Bad Debt
 Check Past History
 Set Strong Terms and Condition
 Provide update Regularly
 Collect more Collateral
 Impose Penalty
 Send Legal Notice

5. Ensuring Sufficient Assets
Know how much collateral is worth
Use bottom line approach
Understand collateral’s discount rate
Calculate Collateral Coverage Ratio

6. Monitoring Cash Flow
Calculate Creditors Income and Expenses
Calculate Liability inflow and outflow
Calculate Assets inflow and outflow
New External Credit
Risk of collecting debts

7. Setting Credit Limits
• Income
• Expenses
• Deposit
• TAX Amount
Investment
Limits

8. Initiating Legal Actions
Step 1 : Bank can go for legal remedies.
Step 2 : Court where suit for recovering money can be filed.
Step 3 : Ensuring there is no triable issue present.
Step 4 : Filing a summary suit
Step 5 : Summoning the defaulter
Step 6 : Court look into these things while granting a
leave to defence
Step 7 : Where the borrower do not reply to summons or
fails to appear before the court

9. Hiring Qualified Analyst
Diligence
Quantitative analysis skills
Written and oral communication skills
Industry knowledge
Multitasking and prioritization skills
Experience with financial software

10. rocess of investment Management
investment
process
Understanding
the client
Asset
allocation
decision
Portfolio
strategy
selection
Asset selection
decision
Evaluating
portfolio
performance

11. Different of Conventional & Islamic
Investment

12. Approval and Evaluation
 Return
 Collect more Collateral
 Risk
 Tax Benefits

13. Investment Default Risk
Understanding Default Risk
Determining Default Risk
Types of Default Risk

14. Importance of Credit Management
 Liquidity
 Safety
 Diversity
 Stability
 Profitability

15. Limitations
i) Lack of proper identification of the determinants
related to bank dealings;
ii) Failure to properly identifying risks involved in banking
transaction; and
iii)Lack of knowledge to manage the risks faced by banks.
iv)All these necessities call for an in-depth investigation
on risk management practices and here lies the
justification of this study.

16. Recommendation
 Improve techniques and appraisal method
 Promote dialogue between Financial
institutions
 Improve information access
 Develop alternative markets

17. References
Investopedia. (n.d.). Analyzing a Career in Credit Analysis. Retrieved from Investopedia:
https://www.investopedia.com/articles/financial-careers/09/career-credit-analysis-analyst.asp
Investopedia. (n.d.). Credit Limit. Retrieved from Investopedia:
https://www.investopedia.com/terms/c/credit_limit.asp
Marshall Freeman. (2021, April 14). How to prevent bad debt. Retrieved from Marshall Freeman:
https://www.marshallfreeman.com.au/blog/how-to-prevent-bad-debt/
Noriega, H. (n.d.). Monitoring and Projecting. In STRIKING THE BALANCE IN MICROFINANCE (pp. 301-
307).
Pandey, A. (2017, May 8). How to get money back from a friend legally in Bangladesh. Retrieved from
ipleaders: https://blog.ipleaders.in/how-to-get-money-back-from-friend-legally/
Wikipedia. (2021, Januuary 31). Credit management. Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/Credit_management
Wikipedia. (2021, February 18). Islami Bank Bangladesh Ltd. Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/Islami_Bank_Bangladesh_Ltd
Wood, M. (2020, September 29). Collateral Coverage Ratio: Formula, Definition, and Examples.
Retrieved from Fundera: https://www.fundera.com/blog/collateral-coverage-ratio-definition

18. Any Question