scholarly journals Economic Capital Allocation for Corporate Borrowers Credit Risk Coverage

2021 ◽  
Vol 14 ◽  
pp. 20-37
Author(s):  
Irina V. Berezinets ◽  
◽  
Anastasiya S. Loginova ◽  
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Bank ◽  
Kernel Regression ◽  
Capital Allocation ◽  
Economic Capital ◽  
Credit Risk Management ◽  
Theoretical Methods ◽  
Starting Point ◽  
Risk Coverage

Both the estimation of economic capital for bank's credit risk coverage, and the allocation of economic capital by sources in order to determine the contribution of individual elements to total credit risk play an important role in the area of risk management of a bank. The estimation of a bank's economic capital for credit risk coverage serves as a starting point in the management of a bank's credit risk, while the allocation of economic capital to cover credit risk among individual elements allows to answer the question of how individual elements contribute to the total credit risk of a bank, which makes it possible to take certain decisions on credit risk management based on the obtained results of allocation. Nowadays, there are various theoretical methods and approaches to solve this nontrivial issue. The authors of the article attempted to implement them in practice, to estimate economic capital for credit risk coverage of a commercial bank and to allocate it among elements. This problem was solved applying the Euler allocation method and kernel regression.

The Application of Stress Testing and Applied Technology in Credit Risk Management

2014 ◽  
Vol 977 ◽  
pp. 435-441
Author(s):  
Neng Fu Zhang ◽  
Xiang Kang
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Bank ◽  
Stress Testing ◽  
Stress Tests ◽  
Credit Risk Management ◽  
Hypothetical Scenario ◽  
Applied Technology ◽  
Bank System ◽  
The Impact

We take advantage of the non-performing loan ratio as the main indicators of credit risk of the commercial bank, make use of the experience of domestic and foreign research, use LOGIT methodology to construct the stress testing model for the macro-economic factors’ impact of China on credit risk of commercial bank, and apply the hypothetical scenario to the test of macro stress in order to make an assessment in quantity for the impact of the macro-economic changes on the credit risk of the commercial bank system. The results show that the stress tests and applied technology can make a contribution to useful reference of credit risk management of the commercial bank of China.

Research on credit risk management of small and medium-sized enterprise in the industrial and commercial bank of China

2021 ◽  
pp. 002072092098350
Author(s):  
Ning Yida ◽  
Luo Hehua
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Bank ◽  
Management System ◽  
Organization Structure ◽  
Practical Significance ◽  
Electronic Business ◽  
Credit Risk Management ◽  
Risk Management System ◽  
Risk Management Process

As the largest commercial bank in China, ICBC is a typical representative of the electronic business of SMEs. However, the electronic business for SMEs has credit risks and needs to continuously strengthen the credit risk management for SMEs. By analyzing the organization structure, system and process of credit risk management for SME in ICBC, this paper attempts to conclude that there are flaws on credit risk organization structure, credit risk management process and system is not sound enough, and there are omissions before, on and after the loan, in addition, risk management awareness is not strong. In view of the above problems, this paper puts forward some countermeasures and suggestions to improve the organization structure of credit risk management, perfect the credit risk management system of SME, strictly carry out risk control before, during and after loans, and strengthen the consciousness of risk management. Researching the credit risk management system for SMEs in ICBC has a great educational and practical significance, for other commercial banks establishing and improving their risk management system.

Credit risk management system of a commercial bank in Tanzania

2008 ◽  
Vol 3 (3) ◽  
pp. 323-332 ◽  
Author(s):  
Evelyn Richard ◽  
Marcellina Chijoriga ◽  
Erasmus Kaijage ◽  
Christer Peterson ◽  
Hakan Bohman
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Bank ◽  
Management System ◽  
Credit Risk Management ◽  
Risk Management System

scholarly journals Methodical approaches for reducing the credit risk

2021 ◽  
Vol 11/1 (-) ◽  
pp. 16-20
Author(s):  
Tetiana HORODETSKA ◽  
Kateryna ZAICHENKO ◽  
Alla IVASHCHENKO
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Banking System ◽  
Developed Countries ◽  
Legal Framework ◽  
Foreign Banks ◽  
Methodological Framework ◽  
Credit Risk Management ◽  
Management Tools ◽  
Starting Point

Banking is inevitably associated with risks. No matter what efforts the bank makes to minimize risks, they will always exist – the only question is to what extent. Lending operations are among the most profitable types of banking, but they are associated with a high level of risk. The instability of the economic situation in the country, the imperfection of the legal framework in this area necessitate a detailed study of the problems of minimizing credit risks. It should be noted that the choice of methods of credit risk management in the bank is quite relevant today. Credit risk management is the most important task of any bank, and choosing the right method of credit risk management will increase the stability, reliability and competitiveness of the banking system, which will positively affect the overall economic condition of the country. Credit risk is the oldest in the system of banking risks and occupies a prominent place. It is necessary to work out an effective system of using the tools recognized by the world banking community to minimize risks, given the possibility of their transfer from the bank to investors. The starting point in the development of the latest risk management tools of the bank should be the creation of a regulatory framework that will regulate this process. It is necessary to improve the existing methodological framework and develop a new methodological framework for credit risk management of the bank, concentrating the advantages of existing assessment methods, create a single method of assessing the borrower's creditworthiness, not to mention a certain algorithm for banks to form credit procedures. It is necessary to adopt the experience of foreign banks in credit risk management. The experience of foreign banks in developed countries, based on a detailed study of all credit procedures, multifactor analysis of the creditworthiness of potential borrowers.

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