Annual Report 2012 - National Savings Bank

112ASSESSING AND MANAGING OUR RISK FACTORSRISK MANAGEMENT(%)90.0080.0070.0060.0050.0040.0030.0020.0010.00-Tenor-wise Breakdown of Credit ExposureLess than 7 days 7-30 days 1-3 months 3-6 months 6-12 months 1-3 years 3-5 years Over 5 yearsperiodFinancial & Non-Financial InstitutionsDevelopment Finance LoansLoans Granted out of Investment Fund AccountHouse & Property LoansLoans against DepositsPawningPersonalAuto LoansOthers• Concentration of the Credit PortfolioConcentration of exposures in creditportfolios is an important aspect ofcredit risk. Concentration risk mayarise from two types of imperfectdiversication. The rst type; the ‘nameconcentration risk’ can arise fromuneven distribution of exposures (orloans) to its borrowers. The second type;the ‘sector concentration risk’ arisesfrom uneven distribution of exposures toparticular sectors, regions, industries orproducts. Name concentration implies(%)90.0080.0070.0060.0050.0040.0030.0020.0010.00-Region wise Credit ConcentrationCentralHousing &PropertyEasternNorthernNorth CentralNorth WesternPawningSouthernSabaragamuwaLoans AgainstDepositsUvaWesternYearOther LoansNATIONAL SAVINGS BANK . ANNUAL REPORT 2012