Credit System and Collection Management: a Performance Evaluating Analysis of Hsbc’s Credit and Collections Management

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1.0 Introduction

The Hong Kong Shanghai Banking Corporation (HSBC) stands for trust and prestige. It is one of the most efficient, best performing banks in the worldwide banking sector. The HSBC Group, one of the world's largest banking and financial services organizations, had its beginnings in Asia more than 130 years ago. The Group has some 9,500 offices in 79 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. HSBC started its operation in Bangladesh from the year 1996. Today, the HSBC Group offers a comprehensive range of financial services in Bangladesh including commercial banking, consumer banking, global payments and cash management, trade services, treasury, and custody and clearing. Recently they gave introduced Amanah banking based on Islamic Shariah (Islamic Law).

The HSBC group has an international pedigree, which is unique. Many of its principal companies opened for business over a century ago, and they have a history, which is rich in variety and achievement. The HSBC Group is named after its founder member, The Hong Kong and Shanghai Banking Corporation Ltd, which was established in 1865 to finance the growing trade between China and Europe.

Throughout the late 19th and early 20th centuries, the bank established a network of agencies and branches based mainly in China and South-East Asia, but also with representation in the Indian Subcontinent, Japan, Europe, and North America. In many of its branches, the bank was the pioneer of modern banking practice. From the outset, Trade Finance was a strong feature of the bank’s business with bullion, exchange and merchant banking also playing an important part. Additionally, the bank also issued notes in many locations throughout the South-East Asia.

1.1 Origin of the study:
Internship Program brings a student closer to the real life situation and thereby helps to launch a career with some prior experience. So, this report has been prepared as a requirement of the internship program for my BBA. The report has been titled as “Credit system and Collection management: A performance evaluating Analysis of HSBC’s credit and collections management”.

1.2 Rationale of the study:

Now-a- days banks are the largest financial institutions and in our country there are 48 banks, and including nine foreign banks.

A bank’s one of the main activities is providing services and credit/ loan facilities to the customers. But, only giving loans to the customers is not all. A bank has to attract its customers for choosing their products and create stimulations by giving extra benefits. That’s not all, after giving such loans a bank have to ensure its loan collections activities by following step by step procedures. As a student I think this is very important to know this banking system to develop my future career and my enhancement. So, I’m proposing this study.

This study will help to find out the nature of delinquent customers of asset products of HSBC and the risk management of delinquent customers, which will work as supportive to Product Section of the department of Personal Financial Services and their collection management unit. 1.3 Statement of the problems:

From the study we can find out the answers of the following questions: 1.What is HSBC Ltd?
2.What are the products offered by the PFS department of HSBC to its customers? 3.Which products are most likely to the customers now and why? 4.What is the defaulting customer’s nature and company’s performance evaluation? 5.In which procedure HSBC collecting their loans?

6.Comparison of HSBC with another local bank?

1.4 Scope of the study:
The presentation of asset-products of Personal Financial Services (PFS) and nature of customers - provide the scope of this report. The scope of this report is limited to the overall description of the company, personal asset-products and their collection management unit.

1.5 Limitations of the...
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