Content
Introduction
Chapter 1. Theoretical aspects credit risk management
1.1 Essence and content of credit risk
1.2 Types of risk in banking
Chapter 2. Analysis of credit risk management using the example of Sberbank OJSC
2.1 a brief description of OJSC “Sberbank”
2.2 Methods for managing credit risk at Sberbank OJSC
Chapter 3. Directions for improving the organization of credit risk management

3.1 Application of optimal credit policy as the basis for credit risk management
3.2 Measures to reduce credit risk
3.3 Banking risk insurance
Conclusion
List of sources used

Introduction

Credit risks are the most common cause of bank failures, and therefore all regulatory authorities set standards for credit risk management, that is, the danger that the debtor will not be able to make interest payments or repay the principal amount of the loan in accordance with the conditions specified in loan agreement, is an integral part of banking activities. Credit risks mean that payments may be delayed or not paid at all, which in turn can lead to problems in movement Money and adversely affect the bank's liquidity.

Banks provide loans to various legal entities and individuals from their own and borrowed resources. Bank funds are generated from client money in settlement, current, urgent and other accounts; interbank loan of funds mobilized by the bank for temporary use by issuing debt valuable papers and so on.

At the same time, these operations are associated with credit risks to which banks are exposed. Despite innovation in the financial services sector, credit risk still remains the main cause of banking problems. More than 80% of the content of banks' balance sheets is usually devoted to this aspect of risk management.

There are usually three main types of credit risk:

1. Personal or consumer risk.

2. Corporate risk or company risk.

3. Sovereign or country risk.

The credit risk management process deserves special attention, because the success of the bank depends on its quality. Studies of bank failures around the world indicate that the main reason was poor asset quality.

credit banking risk insurance

Key elements effective management are: well-developed credit policies and procedures; good portfolio management.

Specific credit risk management measures typically include three types of directives: The first type are directives aimed at limiting or reducing credit risks, for example, determining the concentration and size of loans, lending to bank related parties or exceeding limits. The second type includes asset classification guidelines. This includes an analysis of the likelihood of repayment of a loan portfolio and other credit instruments, including accrued and unpaid interest, which exposes the bank to credit risk. The third type includes guidelines for credit provisioning - not only for the loan portfolio, but also for all other assets that may lead to losses.

Avoiding credit risk is possible through careful selection of borrowers, analysis of loan conditions, constant monitoring of financial condition the borrower, his ability (and willingness) to repay the loan. Fulfillment of all these conditions guarantees the successful implementation of the most important banking transaction-providing loans.

It is very important that banks provide necessary information controlling organizations and other interested parties so that they can correctly assess the financial condition of banks, since banks different countries different rules for classifying loans, reserve requirements, practice in handling problem loans, as well as the degree of professionalism of bank management.

The purpose of this course work analyze and identify types of risks, identify risk management problems associated with professional banking and Russian national specifics. Identify methods for improving measures to reduce credit risk.

This goal involves the consistent solution of the following tasks:

1) Analyze the theory of banking risks;

2) Determine the types of risks and their management methods;

3) Study the system of bank credit risk, the application of methods for managing bank credit risk and Russian national specifics;

4) Identify the principles of the credit risk management process in Sberbank of Russia;

5) Study the basic methods and management of credit risks in Sberbank of Russia;

6) Identify methods for improving measures to reduce credit risk using the example of Sberbank of Russia;

7) Suggest areas for improving credit risk management at Sberbank of Russia.

The subject of the study is the process of credit risk management in the organization of credit work.

Object of study – credit risks of Sberbank Russian Federation.

Chapter 1. Theoretical aspects of credit risk management

1.1 Essence and content of credit risk

Modern banking market unthinkable without risk. Risk is present in any operation, only it can be of different scales and “mitigated” and compensated for in different ways. It would be extremely naive to look for banking options that would completely eliminate risk and guarantee a certain financial results. With this approach to business in market conditions, it is impossible to stay afloat for a long time.

Consequently, for banking, it is important not to avoid risk altogether, but to anticipate and reduce it to a minimum level.

It is generally accepted to understand the probability, or rather the threat, of a bank losing part of its resources, losing income or additional expenses as a result of the implementation of certain financial transactions. Losses, understood as an unexpected decrease in banking profits, are a general indicator characterizing the risk inherent in banking activities.

Thus, risk can be defined as the threat that the bank will suffer losses, the size of which is an indicator of the level of riskiness of the upcoming event and the quality of the risk strategy.

1.2 Types of risk in banking

According to the statement that every bank tries to minimize risk and maximize profit. The optimal ratio of risk levels and expected profit varies and depends on a number of objective and subjective factors.

Risks are distributed among:

· Retrospective

· Current

· Promising

Analysis of retrospective risks, their nature and ways to reduce them makes it possible to more accurately predict current and future risks. By degree, banking risks can be divided into:

· Moderate

According to the main factors of occurrence, banking risks can be economic or political. These main types of risks are interconnected. In turn, political and economic risks can be external and internal. External risks include risks that arise externally to the bank and do not directly depend on its activities. These are political, legal, social and general economic risks that arise in cases of exacerbation economic crisis in the country, political instability, war, cancellation of import licenses and so on. The influence of external risks on the bank’s performance is extremely high; managing these risks is more difficult and sometimes impossible. Internal risks include those that arise directly in connection with the activities of a particular bank. The wider the circle of clients, partners, bank connections, banking operations and services, the greater the internal risks. Internal risks must be identified, assessed, minimized and constantly monitored. Internal risks, in turn, are divided into losses from the main and auxiliary activities of the bank. The first represent the most common group of risks:

Interest rate risk

· Currency risk

Market risk

· Credit risk

Interest rate risk is the risk of loss of profit arising from unfavorable fluctuations in interest rates, which lead to increased interest costs or a decrease in income from investments and proceeds from loans provided. Banks and other financial institutions that hold significant interest-earning funds are generally more exposed to interest rate risk.

The greater the rate mobility (the regularity of its changes), the greater the interest rate risk.

A borrower receiving loans at a fixed rate is at risk due to falling rates, and in the case of a loan at a freely fluctuating rate, he is at risk due to their increase. Interest rate risk for financial institutions can be either basic risk or time gap risk.

The basis risk is associated with a change in structure interest rates. Basis risk occurs when funds are borrowed at one interest rate and lent or invested at another.

Time gap risks arise when loans are received or provided at the same base rate, but with some time gap in the dates of their review for loans taken and provided. Risk arises from the timing of interest rate repricings, as they may change between repricing dates.

Currency risk, or exchange rate risk, is associated with the internationalization of the banking market, the creation of transnational (joint) ventures and banking institutions and the diversification of their activities and represents the possibility of monetary losses as a result of fluctuations in exchange rates.

Quantitatively, the amount of risk can be expressed in absolute and relative indicators. In absolute terms, risk is the amount of possible losses when carrying out certain operations.

Describing risk in absolute and relative terms is often practiced by banks. At the same time, in absolute terms, the risk is calculated when it comes to one specific transaction. If the top management of the bank develops regulations regarding the acceptable level of risk when carrying out various banking operations, then relative indicators are used.

Investment risks associated with possible depreciation of securities. It can occur for a number of reasons. Among them, we should highlight fluctuations in the loan interest rate, changes in profitability and financial well-being, as well as inflationary depreciation of money.

Credit risk, or the risk of non-repayment of debt, applies equally to both banks and their clients, the risk of settlement and delivery is due to failure to fulfill contractual relations for some reason, the risk that is associated with the transformation of types of resources (most often due to ), and the risk of force majeure.

The degree of credit risk of banks depends on factors such as:

Degree of concentration credit activities a bank in any area (industry) that is sensitive to changes in the economy, that is, having elastic demand for its products, which is expressed by the degree of concentration of bank clients in certain industries;

· Share of loans and other banking contracts, attributable to clients experiencing certain specific difficulties;

· Concentration of the bank's activities in little-studied, new, non-traditional areas;

· Introducing frequent or significant changes to the bank’s policy on granting loans and forming a securities portfolio;

· Share of new and recently attracted clients;

· Introduction to practice too large quantity new services within a short period (then the bank is more often exposed to negative or zero potential demand);

· Accepting as collateral values ​​that are difficult to sell on the market or subject to rapid depreciation.

The risk of lending to borrowers depends on the type of loan provided. Depending on the terms of provision, loans are:

· Short-term

· Medium-term

· Long-term

From types of collateral:

· Secured

· Unsecured

Which in turn can be:

· Personal

· Banking

1.3 Credit risk management methods

The credit risk management method is understood as a set of techniques and methods of influencing the managed object in order to achieve the goals set by the bank.

There are three main goals of managing bank credit risk:

1. Risk prevention by eliminating the prerequisites for the occurrence of credit risk in the future.

2. Maintaining risk at a certain level requires the bank to comply with requirements regarding the level of risk that is established Central Bank, and is also determined by the bank itself according to its own risk strategy.

3. Minimizing risk under certain specified conditions, which covers a set of measures that directly influence credit risk.

Responsibility for credit operations entrusted to the board of directors of the bank. The board of directors delegates the practical provision of loans to lower levels of management and formulates general principles and credit policy restrictions.

First of all, the overall policy goal is formulated, for example the provision of reliable and cost-effective loans. The degree of risk must correspond to the usual rate of return on loans, taking into account the cost of credit resources and administrative costs of the bank.

The document indicates which types of loans the bank considers desirable and which it recommends to abstain from. Personal loans secured by houses are also desirable. At the same time, the bank does not recommend expanding the issuance of loans long term investment, loans from persons with a dubious reputation, loans against shares of closed companies, and so on.

Effective risk management must solve a number of problems - from tracking (monitoring) risk to its cost assessment.

The basis banking department risks should be based on the following principles:

· Forecasting possible sources of losses or situations that could cause losses, their quantitative measurement;

· Financing risks, economic incentives to reduce them;

· Responsibility and obligation of managers and employees, clarity of risk management policies and mechanisms;

· Coordinated risk control across all divisions and services of the bank, monitoring the effectiveness of risk management procedures.

The final, most important stage of the risk management process is preventing (warning) the occurrence of risks or minimizing them.

Credit operation is the most profitable item banking business. Due to this source, the main part is formed net profit, transferred to the reserve fund and used to pay dividends to the bank’s shareholders. Credit risk management methods include analysis of the borrower and its main documents from various points of view.

The problem of assessing the creditworthiness of a bank borrower is not one that has been sufficiently developed.

Creditworthiness is the ability of a person to pay off his debt obligations in full and on time.

When determining the borrower's creditworthiness, the following factors were usually taken into account:

· Legal capacity of the borrower to complete a credit transaction;

· His moral character, reputation;

· Availability of loan collateral;

· The borrower's ability to earn income.

Naturally, to the number the most important aspects Creditworthiness referred to the availability of material security for the loan.

At the same time, the complexity of assessing creditworthiness determines the use of a variety of approaches, depending both on the characteristics of the borrowers and on the intentions of a particular lending bank.

There are the following methods for assessing creditworthiness:

System based financial ratios;

· Based on cash flow analysis;

· Based on business risk analyses.

Methods for managing the credit risk of an individual loan include:

· Analysis of the borrower's creditworthiness;

· Analysis and assessment of credit;

· Loan structuring;

· Documentation of credit transactions;

· Monitoring the loan provided and the condition of the collateral;

The peculiarity of the listed methods is the need for their sequential application, since at the same time they are stages of the lending process.

Risk management methods loan portfolio jar:

· Diversification;

· Limitation;

· Creation of reserves for compensation of losses in credit operations of commercial banks;

· Securitization.

IN Lately Banks use methods for assessing the quality of potential borrowers using various types of statistical models in order to develop standards for approaches to determining the objective characteristics of borrowers, finding numerical criteria for dividing future clients based on the materials they provide into reliable and unreliable confirmed risk of bankruptcy and those for whom the risk of bankruptcy unlikely.

Chapter 2. Analysis of credit risk management using the example of Sberbank OJSC

2.1 Brief characteristics of Sberbank OJSC

The history of Sberbank of Russia begins with the personal decree of Emperor Nicholas I of 1841 on the establishment of savings banks, the first of which opened in St. Petersburg in 1842. In 1987, on the basis of state labor savings banks, a specialized bank for labor savings and lending to the population was created - Sberbank of the USSR, which also worked with legal entities. Sberbank of the USSR included 15 republican banks, including the Russian Republican Bank. In December 1990 it was transformed into a joint stock company commercial Bank, which was legally established on general meeting shareholders on March 22, 1991. In the same 1991, Sberbank became the property of the Central Bank of the Russian Federation and was registered as a joint-stock commercial Savings Bank of the Russian Federation. Largely thanks to the support of the Central Bank of the Russian Federation and increased commissions for settlement service Sberbank managed to withstand the default on the 1998 GKO-OFZ.

In September 2012, the Central Bank of the Russian Federation sold a 7.6% stake in Sberbank to private investors for 159 billion rubles, or almost $5 billion. Currently, the Central Bank continues to control controlling interest shares of Sberbank (the regulator has 50% plus one share). Minority shareholders are about 250 thousand legal entities and individuals, including foreign institutional investors, who own more than a third of Sber shares.

Subsidiary banks largest bank The Russian Federation is represented in Kazakhstan, Ukraine and Belarus. There is also a representative office of Sberbank in China and a branch in India. After the acquisition of Volksbank International in 2012, the geography of Sberbank representative offices expanded to nine countries in Central and of Eastern Europe. In June 2012, Sberbank announced the acquisition of 99.85% of the shares of Turkish DenizBanka. In the same year, Sberbank closed a merger deal with investment company Troika Dialogue.

Despite the far from outstanding quality of service in most branches (with the exception of services for VIP clients), the bank leads not only in the size of assets, but also in the number of current accounts of legal entities (over 1.5 million). In the market of private deposits, Sberbank of Russia is a monopolist - it controls 46.6% of the market, the bulk of deposits of individuals are accounted for by the so-called pension deposits in rubles). It is worth noting that at the beginning of 2002 the bank's share was 71.4%. A further decrease in the market share occupied by Sberbank is largely facilitated by the deposit insurance system and an increase in the amount insurance compensation. About 11 million people receive salaries through Sberbank, and 12 million people receive pensions. The bank issued more than 30 million plastic cards, the number of installed ATMs exceeds 19 thousand.

Sberbank is largest player in the government securities market and in the domestic market for interbank loans. In the interbank loan market, as a rule, he is a borrower. In the structure of assets, 71% is accounted for by the loan portfolio. About 15% of assets are placed in debentures, in particular, more than half of this portfolio is invested in government and municipal bonds. The leading positions in the bank's resource base are traditionally occupied by funds in the accounts and deposits of private accounts of corporate clients. At the end of 2012, the bank received a record net profit of 321.9 billion rubles (in 2011, the same figure was 183.6 billion). The bank's assets are almost three times the size of the assets of the next largest VTB and almost five times the assets of Gazprombank. Sberbank is among the top 100 banks in the world in terms of capital assets. Market capitalization exceeds 80 billion US dollars, or 2.4 trillion rubles (has grown more than 30 times over the past 6 years and is now comparable to the capitalization of the French banking group Societe Generale and Swiss Credit Suisse).

According to the Sberbank development strategy until 2014, adopted back in October 2008, the bank must achieve the following financial results:

1. increase net profit by 2.5-3 times;

2. Reduce the ratio of operating costs to operating income by 5 percentage points to (40%);

3. Return on capital must be at least 20%;

4. The number of employees should be 200-220 thousand people. (on this moment there are over 231 thousand of them).

2.2 Methods for managing credit risk at Sberbank OJSC

The credit risk management policy implemented by Sberbank of Russia is aimed at increasing competitive advantages Sberbank of Russia by expanding the range of counterparties and the list of provided credit products, implementation of a systematic approach to credit risk management, including ensuring the preservation or reduction of the level of realized credit risks, optimization of the industry, regional and product structure of loan portfolios.

The Bank applies the following main methods of credit risk management:

1. Covering (reducing the level) of credit risk by forming adequate reserves and appropriate structuring of transactions;

2. Prevention of credit risk by identifying, analyzing and assessing potential risks at the stage prior to transactions subject to credit risk;

3. Limiting credit risk by setting limits and/or risk restrictions;

4. Monitoring and control of the level of credit risk.

Credit risk assessment is carried out for the Bank as a whole and for individual portfolios of assets exposed to credit risk, as well as in the context of individual credit risks of individual counterparties and groups of counterparties, countries, geographic regions, economic sectors/types of economic activity.

The assessment of individual credit risks of corporate client counterparties is carried out depending on the types of counterparties:

1. Corporate clients, individual entrepreneurs, banks, government bodies of the Russian Federation, insurance companies - based on the construction of internal credit rating systems, determining the creditworthiness classes of counterparties, as well as by constructing predictive models cash flows or other important indicators;

2. individuals - based on an assessment of the solvency of counterparties in accordance with internal regulatory documents Jar; express assessments.

Internal credit rating systems provide for the assignment of counterparties to certain credit risk categories depending on the assessment of external and internal credit risk factors and the degree of their influence on the counterparty’s ability to service and repay assumed obligations. The Bank's internal regulatory documents provide for the assessment of a set of factors; their list is standardized depending on the types of counterparties. At the same time, risk factors related to the financial condition of the counterparty and trends in its changes, ownership structure, business reputation, credit history, cash flow and financial risk management system, information transparency, and the client’s position in the industry and region are subject to mandatory assessment. Based on the analyzed risk factors, an aggregated assessment of the risk level and classification of counterparties into credit risk categories is carried out.

Sberbank of Russia pays close attention to monitoring the concentration of large credit risks and compliance with the prudential requirements of the Bank of Russia, analysis and forecast of the level of credit risks, which is currently assessed as acceptable. Analysis, control and management of credit risk concentration is carried out in the following areas:

1. Control over the provision of large loans to individual borrowers or groups of related borrowers;

2. identifying groups of borrowers by industry, country and geographic (intra-country) affiliation;

The system of control and monitoring of the level of credit risks of the Bank is implemented on the basis of the principles defined by the internal regulatory documents of the Bank, ensuring preliminary, current and subsequent control of transactions exposed to credit risk, compliance established limits risk, timely updating.

In the context of growing credit risks in the economy, the Credit Policy of Sberbank of Russia was adopted, which defines a list of additional measures taken by the Bank to effectively manage credit risk in current situations.

The structure of the loan portfolio by currency during 2012 did not undergo significant changes. Loans in rubles still make up the bulk of the loan portfolio – 84% (Table 5).

Table 5

Structure of the group's loan portfolio by currency

The Bank pays close attention to controlling the level of concentration of large credit risks, which is currently assessed as acceptable (Table 6).

Table 6

Concentration of credit risk, %

The applied methods and procedures for managing credit risk allowed Sberbank of the Russian Federation to maintain the high quality of its loan portfolio at the end of 2012. The data in Table 8 below shows the distribution of loans that are overdue by number of days, as well as their share in the loan portfolio.

When creating reserves, the Bank carried out a thorough analysis of the borrower, its level current liquidity and debt burden, taking into account the sources of loan repayment and their reliability, quality and liquidity of collateral. As part of its risk management strategy, the Bank strives to maintain a sufficient level of liquidity, balance the structure of assets and liabilities by maturity and type of currency, and ensure the required level of diversification by region, industry, client and investment size.

The principle of limiting and monitoring credit risk is implemented by Sberbank of Russia through an internal rating system for counterparties, establishing limits and restrictions in relation to various groups of counterparties, regions and countries, individual credit products and transactions exposed to this type of risk. In accordance with internal regulatory documents, the Bank has implemented a procedure for daily monitoring of large credit risks and forecasting compliance with the requirements established by the Bank of Russia for N6 and N7 standards. For these purposes, a List of major and related borrowers of the Bank is maintained.

The applied methods and procedures for managing credit risk allowed Sberbank of the Russian Federation to maintain the high quality of its loan portfolio: as of December 31, 2012, overdue debt amounted to 1.6% of total loan debt (including interbank loans), which is higher than the level at the beginning of the reporting year (0.96%) , but significantly lower than the level of overdue debt in the Russian banking sector as a whole - 2.1% as of December 31, 2012.

Regular monitoring and control of the level of concentration of large credit risks allowed the bank to ensure unconditional compliance with prudential requirements

3.1 Application of optimal credit policy as the basis for credit risk management

To obtain a loan, the borrower submits a loan application to the bank. Application for a loan indicating its intended purpose, amount, terms of use, form of security, legal and postal address of the borrower, his payment details are signed by the manager and chief accountant and sealed by the borrower. An application for a loan by an individual is completed indicating the intended purpose, amount, terms of use, type of collateral, address, telephone number and passport details of the borrower. Depending on the form of the loan provided, the following documents must be provided:

For an interbank loan - notarized copies of the charter and license for banking operations issued by the Central Bank of the Russian Federation; card with sample signatures and seal imprint; annual report and the balance as of the last reporting date or on the day of applying for a loan with the balance on off-balance sheet accounts; calculation of mandatory economic standards for banks; audit certificate.

For the loan provided legal entities– a notarized copy of the constituent agreement; a notarized copy of the charter; document about state registration; permission to occupy economic activity indicating the period of operation; card with sample signatures and seal imprint; annual report, balance sheet with attachments as of the last reporting date; technical – economic justification loan. For a loan provided to individuals - a photocopy of the passport certified by a bank employee; pledge agreement. At the bank's discretion, additional documents may be collected.

The loan application, along with a full package of documents, is reviewed by credit and legal services. During the review loan application The bank carries out a comprehensive analysis of the client’s creditworthiness.

Based on the results of reviewing the documents, an employee of the lending department gives a written opinion on the feasibility of issuing a loan, which is subsequently considered by the bank’s credit committee. The loan provided cannot assume a deviation from normal risk. The decision of the credit committee is documented in the appropriate protocol.

If the issue of granting a loan is resolved positively, the bank enters into a loan agreement with the borrower, the specific content of which and the list of all conditions are determined by agreement of the parties. Loans provided by the bank are secured by the pledge of property and property rights, and the pledge of securities of third parties. These forms of loan repayment security can be used either separately or in combination. In this case, the amount of collateral for loan repayment should be determined by the real (market) value of the collateral is determined at the time of risk assessment for a specific loan. When determining market value collateral, the actual and future state of market conditions by type of property provided as collateral are taken into account.

The provision by the borrower of property and property rights as collateral to the bank is formalized in a separate collateral agreement. The bank accepts the borrower's property as collateral as security for repayment of the loan.

Loans can also be secured by collateral securities, highly liquid shares and bonds joint stock companies, certificates of deposit of commercial banks, bonds and bills government agencies authorities.

The valuation of securities pledged is carried out by the securities department on the basis of current stock exchange quotations or the par value of the securities, depending on their level of liquidity. The transfer of securities as collateral is formalized by an agreement.

Repayment of loan debts is carried out by the borrower in the following forms:

· One-time transfer of the entire amount of debt within the period established by the contract;

· Gradual transfer of amounts agreed with the bank within the loan term in accordance with the payment schedule.

The loan repayment date may be the date the funds are credited to the bank account or the date they are debited from the borrower’s account. The specific repayment date must be specified in the loan agreement. When payments are due to repay the loan by the date specified in the loan agreement, the amount of the outstanding debt is no later than the next trading day transferred to the account of overdue loans with increased interest charged for using the loan in accordance with the loan agreement, if so agreed. Simultaneously with the attribution of the outstanding debt to the account of overdue loans, the bank makes claims against the borrower's account or directly writes off this debt and the interest due for using the loan. If the borrower has overdue debt for more than 10 days, the bank has the right:

· Stop issuing new loans to the borrower and begin collecting loan debt in accordance with current legislation;

· Sell the property accepted as collateral and use the proceeds from the sale to pay off the debt on the borrower's obligations secured by this collateral.

After the sale of the collateral, the remaining amount from the repayment of obligations under the loan agreement must be sent to the borrower no later than three business days following the repayment of all obligations under the loan.

In some cases, the bank may provide a deferment of loan repayment (extend the loan). To consider extending the loan, the borrower must provide the bank no later than 10 days before the loan repayment date.

The decision to extend the loan is made in the manner specified for the issuance of the loan and is formalized by an additional agreement to the loan agreement with a corresponding extension of the loan collateral agreements

3.2 Measures to reduce credit risk

A very important part of credit risk management is measures to reduce and prevent identified risks. IN international practice There are four main directions for reducing credit risk:

1. Assessment of creditworthiness;

2. Reducing the size of loans issued to one borrower;

3. credit insurance;

4. attracting sufficient collateral.

Credit assessment - credit officers usually prefer this method, since it allows you to prevent almost completely all possible losses associated with non-repayment of a loan. There are many different approaches to determining a borrower's creditworthiness.

However, recently, in the practice of foreign banks, a method based on the score of the borrower has become increasingly widespread.

This method involves the development of special scales to determine the client's rating. The criteria by which a borrower is assessed are strictly individual for each bank and are based on its practical experience. These criteria are reviewed periodically to improve the efficiency of credit analysis.

IN Russian practice Determining creditworthiness is used, as noted above, a method based on the study of financial statements.

Currently, this method does not provide a real assessment of the borrower’s creditworthiness, due to underestimated data provided by enterprises and organizations in tax office according to quarterly reporting forms.

Reducing the size of loans issued to one borrower. This method is used when the bank is not completely sure of the client’s sufficient creditworthiness. A reduced loan size allows you to reduce the amount of losses in case of non-repayment.

Loan insurance - involves the complete transfer of the risk of non-repayment to an insurance organization. There are many various options insurance of loans, but all costs associated with their implementation, as a rule, are borne by the borrowers. The object subject to insurance is the responsibility of all or individual borrowers to the bank for timely and full repayment of loans and interest on loans within the period established in the insurance agreement. The policyholder is faced with a choice: to insure the amount of the loan issued with interest or only the amount of the principal debt; insure the liability of all borrowers to whom loans were previously issued or the liability of each individual.

As a rule, in unstable economic situation It is advisable to insure the loan amount with interest for each borrower separately, however, it should be borne in mind that when insuring all loans, automatic liability of the insurance organization is achieved and, in addition, under such contracts a more preferential tariff rate is established. Attracting sufficient collateral - this method almost completely guarantees the bank the return of the issued amount and the receipt and receipt of interest.

Wherein important point is the fact that the amount of loan security must cover not only the amount of the loan issued, but also the amount of interest on it.

The main types of security are pledge, surety, guarantee. Collateral is one of the reliable security for a loan. The most preferred form of collateral at present is deposit or cash currency, which is transferred to the bank. The pledge can also be presented in a commodity, property form, in the form of shares, securities, and if it is transferred to a bank, it is called a mortgage. The bank is obliged to ensure the safety of the mortgage and use it only in case of non-repayment of the loan. Also, the pledge can be in the form of goods in circulation or products in processing, however, since it is difficult to monitor the quantity of goods and products at a certain moment, such a pledge is not encouraged.

When deciding on collateral, the following factors must be taken into account:

· liquidity, that is, the possibility of selling the collateral, the presence of demand for it, the quality of the collateral - how outdated or damaged the equipment is;

· what is the ratio of the market value of the collateral to the size of the loan and how often it should be reviewed. (The bank must be confident that if the collateral is sold, the proceeds will be sufficient to cover the outstanding portion of the loan or the entire loan);

· how the collateral is protected from inflation;

· in case of default by the borrower, will it be easy to collect the collateral legally;

· check before granting a loan the assets intended as collateral for existing claims and other claims against them;

· register the assignment of rights to the pledge in court (if the law does not allow);

· Conduct periodic checks of the location and condition of the collateral.

The next form of loan security is a guarantee. Typically, a surety guarantee is an agreement with unilateral obligations, through which the guarantor undertakes an obligation to the lender to pay, if necessary, the debt of the borrower. In practice, a guarantee is the most acceptable form of security when the guarantor has impeccable solvency and there is no doubt about the legal validity of their guaranteed obligations.

If the borrower turns out to be insolvent, then the guarantor who acted in this role at the conclusion loan agreement, a significant debt must be repaid. To draw up a guarantee, a written statement from the guarantor is required, which indicates the debtor and the amount of obligations. Of particular importance is the fact that the guarantor’s obligations are in addition to the main debt. This means that the guarantor's liability is limited only to the obligations recognized by the debtor himself. Like the debtor, the guarantor is responsible for paying interest, compensation for losses, and paying penalties, unless otherwise provided in the surety agreement.

Typically, the guarantee covers the entire loan amount. If the debtor is not solvent or does not want to pay the debt, then in this case it is paid to the bank by the guarantor, to whom, after making the payment, the claim against the debtor passes. In the future, it can be presented to the latter by the guarantor, who now acts as a creditor.

A special form of guarantee is the issuance of a guarantee. It differs from a guarantee in that it is not an act supplementing the main transaction. A guarantee is an obligation of the guarantor to pay a certain amount for the guaranteed person upon the occurrence of a guarantee event. In banking practice, it often happens that the borrower must provide an obligation to guarantee the return of funds from another bank. By issuing a guarantee, the bank undertakes to act as a guarantor to the lender that in the event of a guarantee event, it will pay a certain amount. Bank guarantee applies to interest or parts of the loan not paid by the debtor within the specified period.

Within warranty obligation The bank's claims and objections from the borrower to the lender are not paid. In this regard, when securing a loan, banks, as a rule, give preference to a guarantee rather than a surety, especially if the guarantee includes a “on demand” clause. In this case, the guarantor bank undertakes to deposit the guaranteed amount upon the first notification of the specific institution in whose favor the guarantee is issued.

3.3 Banking risk insurance

The need for bank insurance lies in the banking activity itself and the inherent risk that arises from the uncertainty of the market situation. The interest that a credit institution receives for services provided is determined in most cases as payment for the risk of loss, not only profit, but also capital. New technologies, the complexity of bank management, computer crimes, abuses of bank employees, ineffective and unpredictable government regulation and much more that gives rise to acquisition financial institutions insurance policies. Losses of this kind can only be compensated by insurance.

Banking experts identify many banking risks. In addition, the success of banks depends on the general economic situation in the country, on changes in domestic and foreign financial markets, on legislation and government actions. None of the risks can be completely eliminated. Banking risk insurance is not a private matter separate bank, because the bank is the custodian and manager of social capital. Bank capital insurance in in full is impractical and impossible and therefore the bank is obliged to create and replenish reserve funds, which provide protection against so-called risks low level. To do this, authorized bank employees determine the necessary types of insurance, primarily against serious types that call into question the continued existence of the bank. For this purpose, in some countries there is a general banking policy, which is mandatory. And this comprehensive insurance helps the bank attract customers and investors.

For an insurance company, a policy is a product that is obliged to provide high level protection for the bank, guarantee to third parties the stability of the credit institution. And for this you need to take a very serious approach to concluding a bank insurance contract. This is as follows:

· conducting a comprehensive audit of the financial condition of the bank;

· organization of control;

· defining clear responsibilities of employees, and so on.

For our own purposes financial security the insurer never takes on 100% of the insurance coverage, since it is more profitable to share this risk with other insurance companies, that is, resort to insurance or reinsurance.

Bank insurance, taking into account the specifics of banking activities, includes:

1. Insurance bank values and other property of banks;

2. Insurance of computer equipment and software V banking sector, including insurance against computer fraud;

3. Insurance against risks associated with the use plastic cards in the banking sector;

4. Credit insurance (both direct credit insurance and loan collateral insurance, including borrower life insurance);

5. Insurance bank deposits(deposits).

6. Cash in the bank's cash desk;

7. Contents of the subscriber safe;

8. Transportation of cash (collector insurance);

9. Can from downtime;

10. From accidents of bank depositors in the amount and term of deposit at the expense of the bank;

11. Banking machines (ATMs);

12. Bank employees in case of their abduction (however, Article 928 of the Civil Code of the Russian Federation imposed a ban on insurance of “expenses that a person may be forced to incur in order to free hostages,” therefore, from March 1, 1996, such insurance cannot be carried out in Russia);

13. Interests of depositors (the federal law “On Banks and Banking Activities” provides for the creation of the Federal Fund compulsory insurance deposits).

The most important banking operation that brings the greatest income to the bank is lending. However, issuing a loan is associated with a large number of risks, with the occurrence of which the bank may lose not only income, but also the funds issued. It was during the period of intensive formation banking system in the Russian Federation (1991-1993), there was maximum demand for credit insurance in the forms of insurance against the risk of loan non-repayment and insurance of the borrower's liability for non-repayment of the loan. It is during this period that the most intensive growth of insurance organizations occurs, when almost every Insurance Company, which appeared on the insurance market, had a license to conduct credit insurance. Essentially, during this period, banks shifted their responsibility for working with customers to repay loans to insurers.

In fact, banks insured their business risk, but at the expense of the borrower. During this period, the payment for insurance was made from the transferred or issued loan amount. The non-repayment of such loans reached 70%. The first steps of cooperation were more forced in the conditions of the formation of banks and insurance companies than a meaningful strategy.

The bank's interest lies in the lump sum repayment of the remaining part of the loan in the event of the client's death, as well as the bank's commission for concluding insurance contracts. Borrower life insurance is also offered by the company when issuing mortgage loans.

Article 38 of the Law of the Russian Federation “On Banks and Banking Activities” requires commercial banks to compulsorily insure deposits in Federal Fund compulsory deposit insurance. Meanwhile, the bill “On guaranteeing citizens’ deposits in banks” has been in the State Duma for about 10 years. Against this background, banks themselves initiate insurance of bank deposits.

Insurance bank deposits is a special type of insurance financial investments from commercial risks that ensure insurance protection in case of bankruptcy commercial bank. The formation and development of the deposit insurance system in the world had a revolutionary social significance, when the overwhelming majority of depositors acquired confidence in the preservation of their funds. At the same time, the creation of a deposit guarantee system helped stimulate the attraction of funds into deposits, strengthen the banking system, and increase the liquidity of both individual credit institutions and the credit system as a whole.

A developing type of bank insurance is insurance of plastic card issuers. The production and use of plastic cards in Russia has developed since the mid-90s, and is currently one of the means of payment that is becoming increasingly popular. The range of users is growing, the number of banks offering the use of both their own and international plastic cards is increasing, and the network of ATMs is expanding. For plastic card issuers, the problem of forgery is a very serious one. Among the many ways to combat card fraud, there are programs that include insurance of plastic cards against forgery, fraudulent changes, and the use of a lost or stolen card by persons other than their owners.

An important type of insurance for banks is insurance of safes, bank vaults and valuables stored in them: money in any currency, securities, debt obligations, etc.; precious stones, precious metals and alloys, as well as products made from them; collections: rare items, antiques and other valuables (business and personal correspondence, database and other information). According to demand among banks this type insurance occupies one of the leading positions, since robbery is one of the most common crimes committed in the financial sector.

In addition to the banking insurance products offered to banks, insurers go further - they provide comprehensive insurance products to bank clients.

Classical property insurance has features related to the insurance assessment of objects and the determination of the insured amount in relation to valuables placed in a safe or in a storage facility, securities on the date of occurrence insured event and etc.

The insurance amount is established by agreement of the parties, taking into account the insured risk and the conditions for its manifestation, therefore the amount of the insurance premium is determined depending on the object and period of insurance, the volume of the insurer’s obligations and the degree insurance risk. If the bank has signed an insurance agreement, the insurance company, together with bank appraisers, assess the bank's risk level. The bank decides whether it enters into a comprehensive insurance contract or insures individual risks and stipulates the insurance conditions.

Credit risk is the possibility of losses due to non-payment or late payment by a client of its financial obligations. Both the lender (bank) and the borrower (enterprise) are exposed to credit risk. Credit risk refers to the possibility that a company will not be able to repay its debts on time and in full.

The following types of risk can be distinguished as part of credit risk:
The risk of non-repayment of a loan means the risk of the borrower’s failure to fulfill the terms of the loan agreement: full and timely repayment of the principal amount, as well as payment of interest and commissions.

The risk of late payments (liquidity) means the risk of delay in loan repayment and late payment of interest and leads to a decrease in the bank's liquid funds. The risk of late payments may transform into the risk of non-repayment

The risk of loan collateral is not an independent type of risk and is considered only when the risk of non-repayment of the loan occurs. This type of risk manifests itself in the insufficiency of the income received from the sale of the loan security provided to the bank to fully satisfy the bank's debt claims to the borrower.

The risk of non-repayment of a loan is preceded by the risk of the borrower's creditworthiness, which refers to the borrower's inability to fulfill its obligations towards creditors in general. Each borrower has an individual credit risk that is present regardless of the business relationship with the bank and is the result of business and capital structure risk.

Ways to reduce credit risk

insurance or reservation - insurance implies that the borrower insures his obligations in favor of the lender (this form of protection against loan default is increasingly popular and is often a prerequisite for issuing a loan); reservation - creating reserves for possible losses; Reservation is a mandatory procedure in banking practice to reduce credit risk.

Diversification - distribution of risk between various loans(various by time frame, industry, etc.); this method is used in relation to credit portfolio management

The main method of reducing the level of credit risk is a thorough analysis of the creditworthiness and selection of the borrower and, possibly, refusal to issue a loan associated with a high risk.

68. Assessing the borrower's creditworthiness

Creditworthiness assessment is a determination of the potential borrower's readiness to fulfill its financial obligations to the lender. Implemented credit experts bank or appraisal companies based on an analysis of the borrower’s credit history.

Where does a credit assessment begin? Firstly, from the amount of income. And the higher it is, the higher the chances of getting approval from the bank’s credit committee. The monthly paid amount, which includes the loan itself and interest on it, cannot be higher than 50% of your income - you need to live on something. The amount of income is the main, but not decisive, factor in obtaining a loan. In second place in importance is position, profession, education, place and length of service, etc. last. If you trade on the market (which the authorities promised to close soon) and your income is $5,000 per month, the underrider will most likely not approve your application, despite the amount of your income. But if you are a good specialist, with a salary of $2,500, and work in one of the companies included in the Top 500, then most likely you will get the loan you need. This is explained quite simply: the bank first of all evaluates the reliability and predictability of the future borrower’s income, and what kind of reliability can we talk about if a person trades on a closed market? Perhaps after closing, he will not find work at all. A good specialist, even if his company goes bankrupt, will easily find a job in a similar company, perhaps even better paid. In third place is the method of verifying income. This is official income on which taxes are paid: 2NDFL, 3NDFL; or it is a “gray” salary, when part of the income is paid officially, and the other part “in an envelope”; or it is a “black” salary, when there is no official confirmation of income. Naturally, banks are more willing to lend to “white” income, but there are banks that consider both “gray” and “black” income. According to the latter, lending conditions are less attractive, but they still exist. In fourth place is credit history, its value and whether it is positive, i.e. if you have previously taken out loans several times and always paid them on time, without delays, then this can be considered a big and fat plus to the underrider’s decision. Next come less important, but still influential parameters: the magnitude down payment, number of dependents, presence of co-borrowers, presence of guarantors, whether the borrower is a resident or not.

69.Leasing and leasing operations of banks

Leasing is an agreement to lease movable and immovable property for a period of three to fifteen years. Unlike traditional leasing, the object of the leasing transaction is chosen by the lessee, and the lessor purchases the equipment at his own expense. The lease term is shorter than the term physical wear and tear equipment. Upon expiration of the leasing period, the client can continue leasing for preferential terms or buy the property at its residual value. In world practice, the lessor is usually a leasing company, and not a commercial bank.

Leasing is one of the types of rental transactions in which there is no transfer of legal ownership of the product to the consumer. By periodically making payments to the lessor during the term of the contract, he pays for the right to temporary use of goods. Leasing involves the preliminary purchase of equipment by a special credit and financial company - a leasing company, which then enters directly into direct relations with the consumer of the leased product. As a rule, the object of such operations is various equipment, means of transport, computers, etc. Insurance costs leasing operations fall on the tenant.

Rent acts as a unique form of obtaining a loan and in many cases significantly facilitates the promotion of exporters’ products to foreign markets. With regular trade credit leasing brings together the conditions for rental operations. The tenant is spared the need to raise funds. Rental payments are made in installments throughout the entire period of use of the equipment. However, the purpose of leasing is not to obtain ownership of a product, but to acquire the right to use its consumer qualities.

Increasing the volume of rental operations in international trade requires attracting significant financial resources. Therefore, it is no coincidence that large commercial banks in many countries are actively involved in financing leasing companies, which then often become their property.

In international practice, a distinction is made between export and import leasing. A transaction in which a leasing company purchases equipment from a domestic firm and then leases it to a lessee abroad is called an export leasing. When purchasing equipment from a foreign company and leasing it to a domestic tenant, the transaction is called import leasing.

Leasing - long-term rental of machinery, equipment, transport equipment and production facilities. appointments. Leasing is the whole complex of emerging property relations and connections. with the transfer of property for temporary use on the basis of its acquisition and subsequent long-term lease. Leasing happens: L. of movable property (Transportation of equipment, machines); L. real estate property (buildings, structures for industrial purposes)1) FINANCIAL leasing-L. property with full recoupment or full payment of its cost. OPERATING leasing - the contract term is shorter than the operational life of the property. (equipment with high rates of obsolescence) 2) CLEAN l. - all maintenance of the transferred equipment. assumed by the lessee. L. WITH FULL SET. SERVICES - full service property is assigned to the lessor. 3) FICTIONAL - the transaction was concluded to provide tax and depreciation benefits. VALID l.-if decree. The higher goal is not the determining one.

Leasing generally refers to property (financial, economic and legal) relations that begin with the fact that one legal entity or individual (potential leasing recipient, user) approaches another entity (leasing company) with a commercial offer to purchase the necessary equipment and transfer it for temporary paid use to the first person.

In accordance with the Federal Law of October 29, 2008 No. 164-FZ 0 financial lease (leasing) in its latest edition (Law of January 29, 2009, Ns 10-FZ), leasing (leasing activity) is a special type of investment entrepreneurial activity, characterized by the fact that an entrepreneur (lessor) acquires ownership of certain property for production purposes and, on the basis of an appropriate agreement (leasing agreement or leasing agreement), transfers it to another individual or legal entity (lessee) for temporary possession and use for a certain fee and for other reasons. certain contractual conditions with or without transfer to the lessee of ownership of the leased asset upon expiration of the lease agreement.

Please note that the lessor is not obliged to sell the property at the end of the term the said agreement, just as the lessee is not obliged to acquire ownership of this property, however, they can enter into a purchase and sale transaction of such property with mutual consent. If the lessor is the owner of the relevant property, then, as is known, in accordance with Art. 209 of the Civil Code of the Russian Federation, he cannot be obligated, even by another law, to renounce the authority to dispose of his property. Consequently, the alienation of one’s property cannot be recognized as the responsibility of the lessor.

Items (objects) of leasing can be things that are not related to personal consumption items, including enterprises and other property complexes, buildings, structures, equipment, vehicles and other movable and real estate, which can be used in business activities.

The functioning of every commercial bank is inherent in financial risk . It is expressed in the likelihood (possibility) of the bank suffering financial losses (losses) or not receiving income compared to planned ones, as well as uncertainty regarding future cash flows due to various reasons, including incorrect actions or lack thereof.

Bank financial risk contains a number of components (Figure 1), the main of which are:

Operational risk;
- risks of banking transactions;
- risk of loss of bank liquidity.

Figure 1 - Components of a bank's financial risk

In turn, the risk of banking transactions can be divided into price and credit.

Credit risk represents the main banking risk, the management of which is a key factor determining the efficiency of the bank. This happens because, as a rule, commercial banks generate a significant part of their income through lending activities, so assessing the potential profit in relation to the probability of non-repayment of the loan by the client is of particular relevance.

In a narrow sense credit risk is defined as the risk that exists for the lender that the borrower will not pay the principal and interest on it.

It should be noted that credit risk relates not only to direct lending operations, but also to leasing, factoring, forfeiting, and guarantee operations to form a securities portfolio.

Bank credit risk should be considered as the risk of a specific borrower and the risk of the loan portfolio .

On the one hand, credit risk is borrower-specific risk, which represents the bank’s potential losses in the event of complete or partial failure by the client to fulfill financial obligations to the bank (failure to repay the principal amount of the debt, interest on it within the terms established by the terms of the agreement).

Here, credit risk includes the risk of non-repayment of the principal debt (this is the loss of part bank assets), the risk of non-payment of interest on the loan (this is the loss of part of the income), the risk of loss of loan security as a result of the destruction of the collateral or bankruptcy of the guarantor.

When carrying out a specific credit transaction, operational risks also arise: risk legal registration credit operation, computer systems risk, etc. If the borrower is a non-resident, country risk may arise; if the loan is provided in foreign currency - currency risk.

Increased credit risks arise when linked lending is the provision of loans to individuals or legal entities associated with the bank through property relations or who have the opportunity to influence the nature of decisions made by the bank on issuing loans and on lending conditions.

As a consequence of the connection between the legal or individual the bank may result in non-compliance with established rules and procedures for reviewing loan applications, determining the borrower’s creditworthiness and making decisions on granting loans. In these circumstances, being tied up may increase the risk of loss on a given loan.

If we consider bank loans in their totality, then for such a totality of credit investments there appears risk of the credit (loan) portfolio jar. Therefore, on the other hand, credit risk is the likelihood of a decrease in the value of part of the bank’s assets, represented by the amount of issued loans and acquired debt obligations, or the likelihood that the actual return on this part of the assets will be significantly lower than the expected calculated level.

The risk components of a bank's loan portfolio may include country risk and loan concentration risk. Country risk arises when banks undertake foreign economic activity and have a wide network of correspondent accounts with foreign banks.

The risk of loan concentration arises when providing large loans individual borrower(non-refundable large sum loan may cause the bank to lose solvency and liquidity) or a group of related borrowers, as well as as a result of the bank’s borrowers belonging either to individual industries and sectors of the economy, or to geographic regions.

Based on the above, credit risk a bank can be defined as the maximum expected loss that can occur with a given probability over a certain period of time as a result of a decrease in the value of the loan portfolio, due to the partial or complete insolvency of borrowers by the time the loan is repaid.

Process credit risk management (credit risk reduction) consists of the following steps:

1. Credit risk identification. Identification involves identifying credit risk, determining possible causes and conditions for its occurrence.

2. Credit risk assessment. The following methods can be used to assess credit risks:

Comparison of actual indicators and risk standards established by the Bank of Russia;
- expert assessments, including, inter alia, analysis of the financial and economic activities of borrowers, rating scales, etc.;
- mathematical calculations and statistical methods, which must be periodically revised to take into account changes in the market.
- scenario analysis, including the development of stress tests (worst-case scenarios associated with the occurrence of risk).

3. Credit risk analysis, carrying out constant monitoring of its level.

4. Minimizing or limiting credit risk by applying appropriate management techniques.

Modern banks use the following credit risk management methods :

Preliminary analysis of the borrower's creditworthiness and solvency;
- current monitoring of loans;
- diversification of the bank’s loan portfolio;
- formation of reserves to cover possible loan losses.

The first and second methods relate rather to a theoretical approach to risk management (forecasting and taking measures to eliminate possible adverse events). They apply to each individual loan application and each individual loan.

The third and fourth methods embodied the approach of creating additional (alternative) sources of funds to eliminate (reduce) financial losses in the event of an adverse event. Here, loans must also be considered in aggregate, as the bank’s loan portfolio.

INTRODUCTION 3
1. NATURE AND CLASSIFICATION OF CREDIT RISKS 6
1.1. The essence of banking risks 6
1.2. Credit risk factors 8
1.3. Principles and criteria for classification of banking risks 13
1.4 Credit risk of a commercial bank and methods of its calculation 21
Conclusions on the first chapter. 27
2. ANALYSIS OF CREDIT RISKS OF JSCB “REGIONAL DEVELOPMENT BANK” 28
2.1. Organization credit process JSCB "BRR" 28
2.2. Credit risk analysis 33
2.3. Credit process and analysis of the credit process using the example of Absolut Bank 39
Conclusions on the second chapter 57
3. PROBLEMS AND WAYS TO REDUCE CREDIT RISKS IN MODERN CONDITIONS 59
3.1. Problems of credit risk management in modern conditions 59
3.2. Ways to reduce credit risks in modern
conditions 72
Conclusions on the third chapter 74
CONCLUSION 75
LIST OF REFERENCES USED 79
APPLICATIONS 82

Fragment of work for review

INTRODUCTION
Modern business is impossible without risk. Risk is reverse side freedom of enterprise. With the development of market relations in our country, competition is intensifying and business opportunities are expanding.
To succeed in your business, you need original decisions and actions. We need constant creative search, we need mobility and a willingness to implement all possible technical and technological innovations, and this is inevitably associated with risk.
The problem of credit risk management is becoming relevant today for all market entities. Banking risks differ from each other in the place and time of occurrence, in the combination of external and internal factors influencing their level, and, consequently, in the method of their analysis and methods of measurement and reduction.
Topic of this thesis: “Credit risks: their factors and ways to reduce them in modern conditions” is extremely relevant.
In this work, we examine credit risks, the object of study of JSCB Regional Development Bank.
Every activity, whatever it may be, and life itself contain a certain amount of risk and chance of the most varied nature.
Any economic activity is subject to uncertainty associated with changes in market conditions, i.e., to a large extent, with the behavior of other economic entities, their expectations and their decisions.
Risk represents an element of uncertainty that may affect the activities of a particular economic entity or the conduct of any economic transaction. So a bank cannot operate without risk, just as not a single type of risk can be completely overcome.
And since the purpose of the bank’s activities is to obtain maximum profit, it must pay great attention to the implementation of its operations with the minimum possible risks. To avoid bankruptcy and its liquidation, to achieve and maintain a stable position in the banking services market, banks need to seek and apply effective methods and tools for managing these risks. The specific risks that banks most often face will determine their performance.
Therefore, as long as banks and banking operations exist, bank risk management and the problems associated with it will always be relevant and significant.
For the same reason, for economists, bank workers Bank risks are increasingly becoming the subject of discussion and analysis. Why more and more often? This is due to the consequences of the transition to market economic principles. It was perestroika and the negative phenomena it caused in Russia (inflation, unemployment, falling production, depreciation of the ruble, etc.) that increased the likelihood of unfavorable consequences of the bank’s activities and expanded the range of banking risks. Imperfection also played a role. monetary policy Bank of Russia.
Credit risk is the borrower’s failure to repay the principal and interest on the loan, interest rate risk, etc. Avoiding credit risk allows for careful selection of borrowers, analysis of the terms of the loan, constant monitoring of the borrower’s financial condition, his ability (and willingness) to repay the loan. Fulfillment of all these conditions guarantees the successful implementation of the most important banking operation - the provision of loans.
In this thesis based on foreign and Russian experience methods of analysis and management of credit risks are considered, allowing them to be reduced as much as possible.
The purpose of writing this thesis is to analyze theoretical and methodological approaches to the analysis and assessment of bank credit risks and to apply the acquired knowledge in practice.
To achieve this goal, it is necessary to solve the following tasks:
1. Determine the essence of credit banking risk;
2. Classify existing credit risks;
3. Analyze the credit risks of a particular commercial bank;
4. Identify problems in managing bank credit risks;
5. Outline ways to reduce them.
The object of the study is Russian commercial banks, namely JSCB Regional Development Bank and JSCB Absolut Bank.
The subject of the study is bank credit risks.
The thesis consists of an introduction, three chapters, a conclusion and a list of references. The first chapter discusses the essence and classification of credit risks; the second chapter provides an analysis of the credit risks of a commercial bank using the example of JSCB Regional Development Bank; The third chapter outlines the problems and ways to reduce the credit risks of commercial banks in modern conditions.

1. NATURE AND CLASSIFICATION OF CREDIT RISKS
1.1. The essence of banking risks
Credit operations of commercial banks are one of the most important types of banking activities.
On stock and financial markets lending retains the position of the most profitable item of assets of credit institutions, but at the same time the most risky. Credit risk, therefore, has been and remains the main type of banking risk. Credit risk is the risk that a third party will not perform credit obligations before the credit institution.
The risk of this type of risk arises when carrying out lending and other operations equivalent to lending, which are reflected on the balance sheet, as well as as a result of some off-balance sheet transactions. Risk is a property of any loan transaction, even with appropriate collateral, since its actual effectiveness at the time of concluding the loan agreement is unknown.
First, there is always the possibility that the borrower will not be willing to repay the debt when it comes due. Secondly, the risk remains due to the occurrence of unforeseen circumstances (loss of pledged property, insolvency of the debtor, bankruptcy of the guarantor or guarantor, etc.)
Thirdly, the credit market contains a lot of risky situations that contribute to the risk of loss of assets of a credit institution. We can say that credit risk is the possibility of losing all or part of the assets in the form of principal. Loss of yield or interest on the principal debt is a prerogative of interest rate risk.
When carrying out credit operations, the creditor bank pursues one goal - to receive income, to increase its capital, and since the credit organization receives the bulk of its profit from lending operations, the importance of minimizing credit risk becomes obvious. Unfortunately, the conditions Russian economy contribute to an increase in risk in this area of ​​banking. These include technical backwardness of production, low quality of products at high costs and, as a consequence, their lack of competitiveness, etc. Therefore, when developing a credit policy in order to manage credit risks, a credit institution must take into account many random factors that influence them and reduce the likelihood of loss of bank assets.

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Credit risks are always possible when applying for loans, and this circumstance should be taken into account by every user. What is the main reason for this? As statistical data show, the main problem is the debtor’s failure to repay the principal amount of the loan, interest payments on it, and other failures to fulfill the conditions stipulated in the loan agreement.

According to the same official statistics, such violations account for more than half of the reasons leading to the termination of loan agreements. 80 percent of the balance sheets of financial organizations contain an interpretation of precisely these nuances of managing possible risks.

In modern banking, there are three types of credit risks:

consumer (personal) risk;

company risk (corporate);

sovereign (country) risk.

Types of credit risks can be assessed by their complexity and possible losses. There is a special scale of indicators for this. Let's consider the main criteria by which this financial value is determined.

The main role is played by:

the possibility of default, when the debtor becomes insolvent for an indefinite period;

credit migration, that is, an indicator of changes in the credit ratings of the debtor, issuer, counterparty and financial transactions themselves;

the amount that is exposed to the possibility of risk and depends on the total volume of receivables to the organization. It is also determined by the amount of funds invested in securities;

the level of non-repayment in the event of default, which constitutes a significant share of the amounts exposed to credit risks.

A basic assessment of this type of possible financial loss can be carried out according to two main positions: by determining borrowing transactions separately and as a whole, when the total portfolio of transactions is summed up.

If we do not take into account credit migration indicators, the basic assessment is detailed as follows:

assessment of the amount of possible risk;

assessment of the probability of default;

assessment of the size of foreseeable and unforeseen losses.

A basic assessment is necessary, first of all, in order to effectively manage credit risks and avoid unwanted losses when doing business. To do this, a financial organization must have significant reserves, which will guarantee the stability of its activities. This approach allows you to adjust credit risks in your favor.

Management of risks

When making trade or financial transactions, it is quite possible to minimize credit risks in conditions of deferred payment, using so-called factoring for this purpose. What does this mean in practice?

The pre-selected farthing company issues a guarantee to the debtor for the deferred payment period, which amounts to about 90 percent of the total payment amount. In the event that he is unable to deposit the necessary funds, the factoring company pays the amount from its reserves in the amount specified in the guarantee.

Another tool for managing credit risks is classic credit insurance. The objects of insurance here are the property categories of the interested party, which relate to possible losses in contractual transactions. In the event of bankruptcy or other unforeseen circumstances arising from the debtor, the insurer undertakes to compensate for lost income, the amount of which is indicated in the relevant contract.