Midland Credit Management

One is naturally inclined to have as much financial help as he/she can avail. The operational procedures include credit application, evaluation of credit proposal, preparation of credit proposal, forwarding to sanctioning authority, giving sanction to the client, disbursement, nursing of the credit and finally recovery of the credit from the client.

It manages in the region of £1 billion of assets on behalf of clients, collects on average over £47 million per month on portfolios it either owns or services on behalf of clients, and has delivered a consistently strong financial performance, having grown its business in each of the last 18 years without exception.Credit Management

However the purchase of Bear Stearns (including its valuable New York office building) in the midst of this Extreme Risk crisis is an example of a survivor (J P Morgan Chase) taking over a failing competitor based on ‘fire sale’ asset values; asset values were falling rapidly as inter-bank credit evaporated and banks frantically chased cash to meet margin calls and other obligations falling due.

Though there is no written record, but it is articulated from the talk with some of the old employees that the very essential segment of their vision was ‘not letting control of every thing go in the hands of West Pakistanis, we the Bengalis must retain control on our economy.’ The pride was shared by all its employees and there was high sense of owning the bank by its employees also (this is very much evident from the talk with some of the old retired personnel).Credit Management

Unquantifiable Uncertainty Risk cannot be modelled because there is no data, so cannot be covered by traditional risk management practices or insurance; moreover extreme risk events (Black Swans) occur relatively frequently and result in business failures.Credit Management