A New Retail Credit Risk Management Approach to Cope with the Crisis

2013 ◽  
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Approach ◽  
Credit Risk Management ◽  
Retail Credit

Retail Credit Risk Management in Indian Public Sector Banks

2012 ◽  
Vol 3 (8) ◽  
pp. 31-37
Author(s):  
Nayan J. Nayan J. ◽  
◽  
Dr. M. Kumaraswamy Dr. M. Kumaraswamy
Keyword(s):  
Risk Management ◽  
Public Sector ◽  
Credit Risk ◽  
Credit Risk Management ◽  
Public Sector Banks ◽  
Retail Credit

scholarly journals Incorporating Sustainability Considerations into Lending Decisions and the Management of Bad Loans: Evidence from Greece

2018 ◽  
Vol 10 (12) ◽  
pp. 4728 ◽  
Author(s):  
Theodosios Anagnostopoulos ◽  
Antonis Skouloudis ◽  
Nadeem Khan ◽  
Konstantinos Evangelinos
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Intermediaries ◽  
Management Approach ◽  
Credit Risk Management ◽  
Critical Question ◽  
Risk Management Process ◽  
Wide Range ◽  
Bad Loans ◽  
Lending Decisions

The financial sector’s role is undeniably crucial in modern economies. Yet, this sector often attracts criticisms. Of particular concern is the negligence of proper credit risk management, which may undermine (macro)economic stability. The absence of appropriate policies (industry and institutional) draws attention to firm performance indicators, which remain short-sighted in assessing the provision of sustainable risk management. The sector and, in particular, financial intermediaries (FIs) must confront the complex task of assessing their impacts and, in doing so, actively endorse enabling conditions towards sustainable development. Our paper offers managerial insights from a wide range of financial intermediaries (FIs) currently active in Greece. We address the critical question of how FIs incorporate sustainability in credit risk management. A mixed-methods approach of online questionnaires and semi-structured interviews was utilized to link and investigate managerial perspectives of sustainability risks and their impact on bad loans. The executives’ responses revealed that sustainability risk management indeed exists, but it has yet to penetrate core processes. It does provide strong motives over new management techniques and contributes to a higher level of materiality of FI’s core operations. Nonetheless, there is still plenty of room for improvement before sustainability risk assessments are comprehensively incorporated in all phases of the credit risk management process so that a robust sustainability management approach underpins FI’s core mission and goals.

scholarly journals Modeling of Bank Credit Risk Management Using the Cost Risk Model

2021 ◽  
Vol 14 (5) ◽  
pp. 211
Author(s):  
Iryna Yanenkova ◽  
Yuliia Nehoda ◽  
Svetlana Drobyazko ◽  
Andrii Zavhorodnii ◽  
Lyudmyla Berezovska
Keyword(s):  
Risk Management ◽  
Decision Support ◽  
Credit Risk ◽  
Risk Model ◽  
Bank Credit ◽  
Credit Risk Management ◽  
Loan Default ◽  
Increased Risk ◽  
Credit Portfolio ◽  
Cost Risk

This article deals with the issue of managing bank credit risk using a cost risk model. Modeling of bank credit risk management was proposed based on neural-cell technologies, which expand the possibilities of modeling complex objects and processes and provide high reliability of credit risk determination. The purpose of the article is to improve and develop methodical support and practical recommendations for reducing the level of risk based on the value-at-risk (VaR) methodology and its subsequent combination with methods of fuzzy programming and symbiotic methodical support. The model makes it possible to create decision support subsystems for nonperforming loan management based on the neuro-fuzzy approach. For this paper, economic and mathematical tools (based on the VaR methodology) were used, which made it possible to analyze and forecast the dynamics of overdue payment; assess the quality of the credit portfolio of the bank; determine possible trends in bank development. A scientific and practical approach is taken to assess and forecast the degree of credit problematicity by qualitative criteria using a mathematical model based on a fuzzy technology, which can forecast the increased risk of loan default at an early stage in the process of monitoring the loan portfolio and model forecasting changes in the degree of credit problematicity on change of indicators. A methodology is proposed for the analysis and forecasting of indicators of troubled loan debt, which should be implemented as software and included in the decision support system during the process of monitoring the risk of the bank’s credit portfolio.

An Investigation of Credit Risk Management Strategies of Private Commercial Banks of Bangladesh

2014 ◽  
Vol 2 (2) ◽  
pp. 77-87
Author(s):  
Abu Hanifa Md. Noman ◽  
Md. Amzad Hossain ◽  
Sajeda Pervin
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Management Practices ◽  
Management Practice ◽  
Management Strategies ◽  
Third Party ◽  
Primary Data ◽  
Credit Risk Management ◽  
Risk Management Strategies

Objective - The study aims to investigate credit risk management practices and credit risk management strategies of the local private commercial banks in Bangladesh. Methodology -The investigation is conducted based on primary data collected from a set of both closed end and open end questionnaire from 23 out of 39 local private commercial banks in Bangladesh. Descriptive statistics has been used in processing the data and interpreting the results. Findings - The results reveal that credit risk management practice of the sample banks is sound which is attributed to the appropriate implementation of Basel II and credit risk management guidelines the country's central bank. The findings further show that use of Credit risk grading is most popular and effective criteria for measuring the borrowing capacity of the borrowers. In order to control credit risk and preventing losses from credit exposure banks give more focus on collateralization, accurate loan pricing and third party guarantee. Loan is monitored properly and credit reminder is given to the client if principal and interest remain outstanding for three months. The study further reveals that lack of experienced and trained credit officers, lack of genuine market information and Lack of awareness regarding non-genuine borrower are the most important problems of current credit risk management practices in Bangladesh. Novelty - To the best of the knowledge of the authors the study is the first that investigates credit risk management strategies of private commercial banks, especially on Bangladesh. Type of Paper - Empirical Keyword : Bangladesh; Commercial Bank; Credit risk; Credit risk management; Credit risk management strategies.

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