Managing Portfolio Credit Risk in Banks Credit risk is the risk resulting from uncertainty that a borrower or a group of borrowers may be unwilling or unable to meet its contractual obligations as per the agreed terms. It is the largest element of risk in the books of most banks and financial institutions. Potential losses due to high credit risk can threaten a bank’s solvency. After the global financial crisis of 2008, the im- portance of adopting prudent risk management practices has increased mani- fold. This book is an attempt to demystify various standard mathematical and statistical techniques that can be applied in measuring and managing portfo- lio credit risk in the emerging market in India. It also provides deep insights into various nuances of credit risk management practices, which are derived from the best practices adopted globally with case studies and data support from the Indian banks. The book explains how a proper portfolio credit risk management framework enables banks to identify, assess and manage the risk proactively and enhance entity performance. The book has been designed to give readers – students of finance, bank personnel and practitioners – solid foundation knowledge of credit risk measurement and management. Arindam Bandyopadhyay is Associate Professor in Finance and Associate Dean (Research and Consultancy) at National Institute of Bank Management (NIBM), Pune. He teaches risk management and research methodology sub- jects for NIBM’s postgraduate course and has undertaken major consultancy research projects in risk management, banking, finance, and housing market. Dr Bandyopadhyay has publications to his credit in peer-reviewed journals in the areas of risk management and corporate finance. He is a trainer to bank executives and has conducted about 50 executive development programmes for banks at NIBM. www.cambridge.org © in this web service Cambridge University Press Cambridge University Press 978-1-107-14647-1 - Managing Portfolio Credit: Risk in Banks Arindam Bandyopadhyay Frontmatter More information