So, in order to reduce credit risk

5:01 AM    

So, in order to reduce credit risk the bank's employees consider documents submitted by potential borrowers, carry out verification of compliance and authenticity of the documents and information provided by the borrower, carry out analysis of the key indicators of its financial activity, studied business reputation management company. In a study of the company focuses on compliance with contractual obligations, financial and economic discipline, the analysis of cash flows in the accounts of the potential borrower. In assessing the borrower's financial state by validating its balance sheet. Experts expect the coefficients that determine the class of the borrower's credit and risk operations, monitor collateral interviews with business leaders, site visits and other collateral during the loan agreement is carried out quarterly evaluation of the financial condition of the borrower in order to identify changes in the financial and economic condition of the company and if necessary, amended the loan agreement. As a result of adverse market fluctuations in interest rates the bank exposed to interest rate risk. In order to reduce interest rate risk and the bank uses a comprehensive risk management system based on: predicting trends in interest rates, the study of dynamics of the spread between interest rates on borrowed and placements, the determination of the GAP-gap between assets and liabilities that are sensitive to changes in interest rates on different time intervals, determining the balance of assets and liabilities sensitive to interest rate changes and the ratio of GAP-breaking to the net assets of the bank, monitoring the gaps between assets and liabilities sensitive to interest rate changes on a daily basis, monitoring the level of net interest margin, compared values ​​of interest rate risk with a profit of bank holding weighted interest rate policy of the bank, which is based on the formation of interest rates on loans, taking into account the cost of liabilities, and the rating of the borrower, the risk of surgery, a monthly review of interest rates on active and passive operations with consideration of the market exposure of banks - rivals. Category: Financial Management