Download Annotation Improving the management of credit risk in banking

Annotation
Improving the management of credit risk in banking institutions
Avramchuk L.,Ohrimchuk T.
The article deals with the stages and the credit risk management of the bank. Based on what
presents
measures
to
improve
credit
risk
management
in
banking
institutions.
Keywords: bank, risks, credit operations, management, limitation.
To successfully lending and increase profitability of credit operations, banks
should implement a clear and flexible credit risk management operations.
Formation of quality loan portfolio with indication credit risk is one of the
priorities of Ukrainian banks. No bank can not completely prevent the negative
effects of risk factors, but should take them into account in their work and to
develop appropriate measures for timely adaptation or neutralize their action.
Increased competition, liberalization of financial markets and diversified
banking institutions pose new challenges and contribute to the emergence of new
risks.
In addition, the bank was able to successfully manage risk, they must be
identified in time. The risks can and should be consciously controlled.
Analysis of risk is based on goals, pursuing the borrower, loan term, loan
methods, procedures etc. calculations. But most important is the analysis and
comparison of projects for their economic efficiency.
This is a very important element in the choice of projects because of wellfounded and comprehensive assessment depends term return on invested resources
and options for their use.
Each entity management (credit manager, credit committee) selects a
particular method of reducing the credit risk of the borrower, depending on the
specifics of your credit activities defined credit policy.
As for market risk management, the Bank is carried out in accordance with
its strategic objectives. The priority is to maximize the preservation of assets and
capital through reducing potential losses and profit shortfall on deposits in the
bank's financial instruments including deposits in foreign currency and precious
metals.