Comprehensive system of assessing credit risk

A) adequate knowledge base, which: - Allows management to make informed decisions about granting loans and evaluate risk on a permanent basis - Provides information on size, destination and source of debt, as well as to evaluate the borrower's ability to repay it on time - Provides information for timely response and application of appropriate legal sanctions against the borrower - Provides the ability to exercise adequate management and monitoring of credit, credit operations - Allows you to maintain storage and processing of data for previous periods, and d) the identification of loans whose quality is deteriorating, and e) proper work with troubled assets, which include the following: - Continuous management of credit exposures (operations in their entirety), which require further attention - Periodic inspection of asset quality for the identification of distressed assets - Methodology for the identification, evaluation, accounting, credit quality is deteriorating, and the creation of under their respective reserves - Compare the total amounts of problem assets with capital - Assessment of potential losses on troubled assets and reserves sufficient to cover these losses, e) Preparing and submitting periodic reports to the managers and the supervisory board with sufficient information to assess the level of risk. These reports shall include (but are not limited to): - List of loans by risk classification; - Analysis of bad loans - risk assessment of trends in the loan portfolio - Information about the bad loans from the loan officer, branch offices, industries, types of support and etc. - Analysis of changes in the level of bank reserves based on the level and trends in problematic assets and total loans - Analysis of the concentration of loans to customers, related entities, industries and regions, g) function of the independent audit of credit activity, the purpose of which is the analysis of the quality of individual loans and loan portfolio as a whole. The results of this analysis must be submitted by the board and the supervisory board on a regular basis. Topic: Risks in Banking