Most important area of ​​ongoing bank

The structure of the bank's balance sheet loan portfolio is considered as one component of bank assets and having a level of profitability and risk. Therefore, for successful loan - repayment of loans and increase profitability of lending - banks need to implement an efficient and flexible system for credit portfolio management. One of the key elements of effective credit management are well-developed credit policies should ensure the effective management of a portfolio of bank loans, careful control over them and minimizing losses from the onset of credit risk. In banking as in other types of business risk is associated primarily with the financial losses that arise in the implementation of certain risks. The activities of the bank is very diverse and includes operations to raise funds, issue and purchase of securities lending, factoring, leasing, providing customers in cash. Implementation of each transaction is associated with the ability to implement multiple risks. As the bank at the same time performs active and passive operations there are risks as credit risk, currency risk, interest rate risk, liquidity risk, the risk of rupture time attracting and placing funds and other risks. Risk means the risk (opportunity) loss of the bank of its resources, lost revenue or additional costs incurred as a result of certain financial transactions. Category: Health and Safety | Tags: credit portfolio management