Internship Report on Stress Testing of Sonali Bank PLC

-By Sheikh Salah Uddin

During my stay at the office as an intern, I never felt vague or ambiguous. The environment of the Sonali Bank Limited is work-friendly. The staffs are specialized in their respective fields. Each of them works on their own and their id supervised from the top management. The motivation of the staff, I believe, comes from the very sense of responsibility. My report is on the basis of the fundamental analysis rather than the general banking. So, I actually worked there full time, but prepared my report in my room after my work time. First of all I described all functions and present position of Sonali Bank, then gradually I entered into the main part of the report through describing the newly invented process of measuring the financial situation or position of a bank/FI, named Stress Testing. This report is intended to answer some of the basic questions that may arise as part of the process of stress testing. The report begins with a discussion of stress testing in a financial system context, highlighting some of the differences between stress tests of systems and of individual portfolios and then ends up with the stress test on the basis of financial system of Sonali Bank Limited. The paper provides an overview of the process itself, from identifying vulnerabilities, which are called ‘shock’ to constructing scenarios to interpreting the results. The remaining part consist the analysis (page-56), findings (page-82), recommendations (page-83) and conclusion (page-86). I tried to make the report perspicuous and comprehensible for the students and the other persons who are not related to any part of business and so I used graphical presentation besides data & calculation tables. As CAR is the main capital risk 1 measurable function, all the risks are converted to CAR (%) to understand the company position if they can recover that shock using their own capital or not. I’ve done lots of financial calculations, observed their financial reports & from my working experience I also gathered knowledge about their administrative processes of managing different issues. Summarized findings can be found in chapter-6.

Please follow the link below to get the analytical report:

https://shorturl.at/w9WEv

Thank you.