Impacts of Covid 19 on businesses have been unexpectedly deterrent and it is unknown how long it keeps impacting. The workforce of Nepalese Banks working in the area of Credit and Risk management are mostly trained for processing credits with a focus on growth by assessing the inherent risks in the business.
The Agriculture sector is considered as a backbone of economy in the country. About 60.4% of the total population of Nepal is dependent on agriculture contributing more than one third of GDP and employing two third of labor forces . Due to the global impact of the COVID-19, the sector has become a more significant and high priority segment like our country.
Training on Credit Documentation, Monitoring, Recovery and Legal Issues in Recovery of Non-Performing Loans
Lending or advancing credit facilities is one of the core functions of banks and financial institutions. All employees engaged in credit related jobs should possess basic knowledge about the function before or at the time of assuming such role.
Property - Land and building is one of the Prime collateral considered by Banks and Financial Institutes. It is generally a challenge to understand cadastral map (the Blue Print) for the bankers. It is important for the bank staff -Relationship Managers, credit underwriters, documentation and loan processing staff to have a basic knowledge on interpreting the cadastral map.
COVID-driven travel restrictions and social distancing have had an immediate and dramatic impact on the cash flows of many corporates and SMEs, from airlines to retailers to restaurants. Banks are already being inundated with requests for credit and must make urgent and “distressed” credit decisions. This flow will increase in the coming weeks/months as cash reserves run down and clients look to banks to deliver billions of lending support.
A proper understanding of Retail lending concepts and systematic process would lead to quality decisions and avoid costly mistakes. In order to save the bank from reputation risk, the retail lending team should be aware of retail lending and security procedure.
