Risk management
Credit risk
- Credit Risk may arise at the level of a loan or of a portfolio The following factors may cause the arising of credits risks at the level of individual loans: Lack of funds of the borrower for the repayment of the loan and for making payments under the credit facility Security liquidity risk Failure of sureties to comply with their obligations Personal features applicable upon a borrower
- The following factors may cause the arising of credits risks at the level of a loans portfolio: High concentration in respect of any specific field of economy | Portfolio’s currency concentration | Failure of the loan portfolio to correspond to the requirements of the bank | Personnel’s qualifications
- Management of credit risks includes the following stages: Evaluation of a credit risk | Monitoring of a credit risk | Regulation of a credit risk
- The following methods may be conducive to achieving the goals and purposes of the management of credit risks: Thresholds system (limits) | Authorities and decision making system | Information system | Monitoring system | Control system