PR E FAC E

Risk is an inherent part of Banks business and activities. The extent to which the Bank
properly and effectively identifies, assesses, measures, monitors, manages and controls each
credit risk, is critical to its financial soundness and profitability. In order to establish an
effective and efficient management of the credit risk, each banking organization should have
robust credit risk management policies and procedures.
Bangladesh Bank requires that each commercial bank operating in Bangladesh must have a
clearly defined credit policy to be approved by the Board of Directors. In pursuance of the
above objectives, the bank earlier prepared Credit Policy and Process Manual in 10(ten)
chapters duly approved by the Board of Directors. However, the need was felt to have a more
comprehensive policy document on Credit Risk Management. The earlier policy manual
has been suitably revised and amended for smooth handling of the affairs relating to credit.
This policy will replace the Credit Policy and Process Manual of the Bank which was
approved by the Board of Directors in its 225th meeting held on 16 January 2005 and ratified
by the Board of Directors in its 270th meeting held on October 29, 2008.
It is very likely that this policy will have shortcomings and inadequacies which will be
rectified in due course. This Credit Policy Manual will be modified as may be warranted by
the change of circumstances from time to time to suit the requirement of the Bank. Any
suggestion for improvement of its contents will be appreciated. In addition to the instructions
contained in this policy, the credit officers of Branch as well as Credit/Corporate Division of
Head Office will also be guided by credit circulars issued by Head Office and/or Bangladesh
Bank from time to time.
The concerned executives and officers of the Bank must keep themselves fully conversant
with the contents of the manual and follow them meticulously while processing and handling
various types of credit facilities and dealing with the administration of the credit portfolio.
The contents and instructions laid down in the Policy Manual are strictly PRIVATE and
CONFIDENTIAL and meant for internal use only. Any part of this manual must not in any
way be divulged to any person not in the service of the Bank and use of this manual other
than the purpose of United Commercial Bank Limited is strictly prohibited.
I express my thanks and gratitude for the support given by the distinguished Board of
Directors in finalizing the Manual to conduct the credit operation smoothly and efficiently.

United Commercial Bank Limited

Head Office, Dhaka

M. SHAHJAHAN BHUIYAN
Managing Director