RISK MANAGEMENT FRAMEWORK

NBP Board of Directors and senior management is fully committed to strengthen the Risk Management structure and practices in NBP. A number of initiatives taken and planned by NBP, in this regard reflects management commitment to upgrade the quality of the risk management process, such as the formation of a Board level Risk Management Committee; Basel II Gap Analysis Exercises; implementation of Risk Management Software for managing Credit Risk, continuous improvement in the Policies, Procedures and reporting for effective Risk Management and shift from fixed mark-up rate structures to floating rates of mark-up for managing interest rate Risk.

Credit and Risk Management

NBP is continuously upgrading its risk management process to identify, evaluate and manage risk. The bank established an Operational Risk Management Unit to supplement its already established Credit and Market risk units for comprehensive risk managements. Risk management in terms of adoption of Basel II guidelines is on time and is advancing smoothly with completion of internal gap analysis. Credit Management System is based on elaborated risk assessment and Credit Rating System to ensure a very objective and timely assessment of each proposal.


We have our internal filtration systems and approval hierarchy to ensure that proper authority and responsibility is established and at the same time to reduce the lead processing time of the credit application. We have proper monitoring system and have also setup a separate Credit Administration Department (CAD) to further improve our credit monitoring function.