To increase the "flexibility" in respect of the balance of interest-rate risk

In a fixed-rate instruments (credit, deposit) provided an opportunity to renegotiate interest rates due to the significant fluctuations in market rates or changes in the discount rate. Analysis of GAP-break average interest rates made in accordance with the internal reporting form, "A time series of liquidity," which provides an opportunity to analyze the gaps in the rates and terms of assets and liabilities of consolidated subsidiaries and in the context of all currencies. For managerial decision making within the definition of the lower cost of bank credit and ensure the stable operation of the bank, the calculation is performed and the analysis of rates to break even. Among the main tools in the management of credit risk used in Pravex is the establishment of limits and standards for active operations, counterparties and financial instruments. World practice in developed countries with stable economies suggests the banks of bad debts to 6% of the total credit portfolio. As of 01.01.07g. in Pravex Bank of bad debts was 3.03% (including 1.2% - loans up to 1998), on 01.01.08g. - 1.56%. Category: Financial Management