Mechanism and model of credit portfolio diversification

2020 ◽  
Vol 17 (1) ◽  
pp. 78-89
Author(s):  
E. V. Orlova
Keyword(s):  
Credit Risk ◽  
Portfolio Management ◽  
System Analysis ◽  
Statistical Data ◽  
Empirical Studies ◽  
Practical Importance ◽  
Maximum Yield ◽  
Credit Risks ◽  
Credit Portfolio

Under conditions of demand for credit resources growing in Russian economy the importance of credit risks assessment and their influence on the credit organizations efficiency is increased. Empirical studies show that credit risks in the banking today are increasing nonlinearly relative to the main characteristics of the credit — the level of credit risk, credit terms, interest rate. Therefore, the formation of the most acceptable from the point of view of risk reducing of the bank’s credit portfolio is a scientifically based and practically important problem. The aim of the work is to justify the need for and develop a new mechanism for managing the bank's credit portfolio, ensuring its diversification and reduction of credit risks. The materials of the study were the statistical data of the Bank of Russia and Rosstat. Methods used in the work are: system analysis, control theory, statistical data processing and operational research. A mechanism for managing the quality of a bank credit portfolio is proposed, featuring a combination of quantitative and qualitative criteria for assessing the quality of the credit portfolio and allow to monitor of the credit portfolio, to make decisions on approving or rejecting a credit application in accordance with the permissible values of risk factors. A model has been developed for optimizing the structure of the credit portfolio, which makes it possible to form an optimal ratio of long-term and short-term credits, ensuring the maximum yield of the credit portfolio taking into account credit risk in the context of various credit policy types. A practical importance of the investigation are the positive results of the implementation of the proposed mechanism and model of credit portfolio management into the credit organization, ensuring the growth of its profitability and promoting an increase in competitiveness.

scholarly journals Evaluating the Processes of Management of Credit Portfolio of JSC CB «PrivatBank»

2020 ◽  
Vol 10 (513) ◽  
pp. 325-332
Author(s):  
N. P. Pohorelenko ◽  
◽  
A. Y. Yurchenko ◽  
Keyword(s):  
Portfolio Management ◽  
Banking Sector ◽  
Analytical Data ◽  
Bank Lending ◽  
Financial Indicators ◽  
The Status ◽  
Credit Portfolio ◽  
Research Period ◽  
Credit Portfolio Management

The article is aimed at studying the status and structure of the credit portfolio of JSC CB «PrivatBank», also evaluating the processes of management of the bank’s credit portfolio through the computation of the coefficient of credit portfolio management efficiency. While analyzing financial indicators, a consideration and a research of the status of bank lending in modern conditions of the national economy of Ukraine were carried out. The reasons for reducing the proportion of the credit portfolio in the GDP structure during the research period are summarized. The fundamental principles of the credit portfolio management of JSC CB «PrivatBank» were analyzed in accordance with the «Regulation on credit policy». As a result of the research, the analysis of the main analytical indicators of credit portfolio management was accomplished, the structure of the credit portfolio and the structure of the bank’s portfolio credit quality during 2016-2019 were determined. On the basis of analytical data, the coefficient of efficiency of management of the bank’s credit portfolio was computed. Actual problems affecting the process of management of the bank’s credit portfolio were considered. The indicators of the efficiency of credit portfolio management of JSC CB «PrivatBank» for 2016-2019 are computed. It is determined that the key challenges for both the researched bank in particular and the banking sector in general remain a high proportion of non-performing loans. Decisive actions on the part of the management of JSC CB «PrivatBank» will help to improve the structure of the credit portfolio and reduce the amount of troubled debts of the bank. Ways to solve problems of improvement and enhancing the quality of credit activity of the bank are prospects for further research.

scholarly journals MINIMIZING CREDIT RISK AND IMPROVING THE QUALITY OF THE CREDIT PORTFOLIO OF THE COMMERCIAL BANK

2017 ◽  
pp. 18-23
Author(s):  
O. M. Ermolenko
Keyword(s):  
Credit Risk ◽  
Foreign Banks ◽  
Credit Policy ◽  
Loan Portfolio ◽  
Financial Uncertainty ◽  
Main Factors ◽  
Lending Activity ◽  
Credit Portfolio

The article examines the main factors shaping the credit risk and defines the role of credit risk in the process of formation of a credit portfolio of commercial banks. In conditions of instability and financial uncertainty, credit institutions are faced with risks, including credit, because credit operations occupy the largest share in their activities. The quality of loan portfolio determines the capabilities of the Bank in its functioning on the market of credit products, which affects the level of lending activity and the possibility of recovery in the credit market. The process associated with the loans is determined by the credit quality of the banks. Statistics data of the operation activities of commercial domestic and foreign banks suggests that a well-organized loan process, efficiently formed loan portfolio and conduct credit policy, the Bank will provide prosperity in the future.

scholarly journals Problems of qualitative evaluation of commercial bank loan

2020 ◽  
pp. 15-19
Author(s):  
Nadiia SOLOVEI ◽  
Ihor SKRYPNYCHENKO
Keyword(s):  
Commercial Bank ◽  
Financial Stability ◽  
Risk Index ◽  
Maximum Yield ◽  
Bank Loan ◽  
Credit Policy ◽  
Loan Portfolio ◽  
Banking Institutions ◽  
Credit Portfolio

The article defines the nature of the loan portfolio, as well as the problems in the assessment and analysis of the commercial bank loan portfolio. In order to improve the existing credit portfolio of the bank, the dynamics, categories of the borrower ratio and the quality of the loan portfolio are analyzed, based on the obtained data, significant factors influencing the formation and management of the analyzed bank's loan portfolio are determined. Generation of a loan portfolio is usually subject to issuance of loans with maximum yield on the same terms. The profitability of a loan transaction is determined by the amount of the interest rate on the specific loan, the duration of the loan and the accepted system of calculation of interest payments. Practice shows that the success of managing the efficiency of banking investments and the formation of an effective structure of the bank's credit portfolio depend to a large extent on the skills of managing the banking institutions that carry out optimal formation, management of the credit portfolio and good management to ensure the efficiency of activities with the least possible risk and maximize results. The quality of the loan portfolio is analyzed using the coefficient method based on the calculation and analysis of trends in the development of relevant quantitative indicators. In the economic literature, the indicators that we can use to assess the quality of a bank's loan portfolio are divided into two groups: the credit portfolio risk index and the profitability of the credit business. The results of the analysis allow us to draw conclusions about the level of risk and profitability of the bank's loan portfolio and to develop measures to improve the effectiveness of the bank's credit policy. Based on the analysis of the structure and quality of the loan portfolio, the Bank's management is given an opinion to consider in order to determine the priority instructions for the placement of credit resources, limit the concentration and diversification of the loan portfolio and set limits on the execution of individual loans. It is concluded that prudent credit policy with an increase in rates, constant monitoring of the components of the credit portfolio, urgent management measures of banking institutions in the field of risk management should lead to an increase in lending and improve the quality of the portfolio management system. It is noted that the implementation of mainly quality measures to improve the structure of the loan portfolio will inevitably affect the financial stability of the bank and business efficiency, as well as increase its competitiveness and operational security.

scholarly journals Impact of credit information on the banks stability: Global experience and lessons for Ukraine

2016 ◽  
Vol 6 (2) ◽  
pp. 28-34
Author(s):  
Inna Bielova ◽  
Taras Savchenko
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Credit Risks ◽  
Credit Bureaus ◽  
Public Credit ◽  
Low Efficiency ◽  
Domestic Banks ◽  
High Level ◽  
Credit Portfolio

A quality of the credit portfolio is one of the most important factors of banking system reliability. It is obviously, that there is a direct relationship between this indicator and financial stability of the bank. In turn, the quality of the loan portfolio depends on many factors that are investigated in scientific and educational literature. In this paper, we propose to focus on a group of factors of credit risk that are connected with the availability of information about the borrower. The low efficiency of the national system of collecting information about borrowers in Ukraine in comparison with foreign models was confirmed by the quantitative analysis. This tendency cases the high level of credit risks and low financial stability level of domestic banks. It is necessary to make active efforts on improving the effectiveness of credit bureaus in Ukraine by establishing public credit registry and also to focus on solving other problems associated with the collection and use of information about borrowers.

scholarly journals DSS FOR IMPLEMENTING SYSTEMIC APPROACH TO FORECASTING

2015 ◽  
Vol 14 (5) ◽  
pp. 5769-5778 ◽  
Author(s):  
Aleksander Peter Gozhjy ◽  
Peter Bidyuk ◽  
Alexander Trofymchuk ◽  
Alexei Bidyuk
Keyword(s):  
Data Processing ◽  
Credit Risk ◽  
System Analysis ◽  
Risk Estimation ◽  
Quality Criteria ◽  
Modular Architecture ◽  
Risk Models ◽  
Modeling And Forecasting ◽  
Computer Based

A computer based decision support system is proposed the basic tasks of which are modeling and forecasting of financial processes and credit risk estimation. The system is developed on the basis of system analysis principles, i.e. it has hierarchic architecture, there exists the possibility for taking into consideration some stochastic and information uncertainties, forming alternatives for models and forecasts, and tracking the computing procedures during all stages of data processing. A modular architecture is implemented that provides a possibility for the further easy enhancement and modification of the system functional possibilities with new forecasting and parameter estimation techniques, and the risk models. High quality of final result is achieved thanks to appropriate tracking of the computing procedures at all stages of data processing: preliminary data processing, model constructing, and forecasts estimation with appropriate sets of statistical quality criteria. Example is given for modeling selected processes and credit risk estimation. The example presented shows that the system developed has good perspectives for practical use.

scholarly journals What Constitutes a Local Public Sphere? Building a Monitoring Framework for Comparative Analysis

2021 ◽  
Vol 9 (3) ◽  
pp. 85-96 ◽  
Author(s):  
Renate Fischer ◽  
Alexa Keinert ◽  
Otfried Jarren ◽  
Ulrike Klinger
Keyword(s):  
Statistical Data ◽  
Empirical Studies ◽  
Public Spheres ◽  
Four Dimensions ◽  
The Social ◽  
Monitoring Framework ◽  
Local Actors ◽  
The Impact ◽  
German Cities

Despite the research tradition in analyzing public communication, local public spheres have been rather neglected by communication science, although they are crucial for social cohesion and democracy. Existing empirical studies about local public spheres are mostly case studies which implicitly assume that cities are alike. Based on a participatory-liberal understanding of democracy, we develop a theoretical framework, from which we derive a monitor covering structural, social, and spatial aspects of local communication to empirically compare local public spheres along four dimensions: (1) information, (2) participation, (3) inclusion, and (4) diversity. In a pilot study, we then apply our monitor to four German cities that are comparable in size and regional function (‘regiopolises’). The monitoring framework is built on local statistical data, some of which was provided by the cities, while some came from our own research. We show that the social structures and the normative assessment of the quality of local public spheres can vary among similar cities and between the four dimensions. We hope the innovative monitor prototype enables scholars and local actors to compare local public spheres across spaces, places, and time, and to investigate the impact of social change and digitalization on local public spheres.

scholarly journals Decision-Making Techniques for Credit Resource Management Using Machine Learning and Optimization

Information ◽  
2020 ◽  
Vol 11 (3) ◽  
pp. 144 ◽  
Author(s):  
Ekaterina V. Orlova
Keyword(s):  
Machine Learning ◽  
System Analysis ◽  
New Technology ◽  
Practical Importance ◽  
Optimization Methods ◽  
Bank Lending ◽  
Credit Risks ◽  
Management Processes ◽  
Positive Results ◽  
Methods Of Control

Credit operations are fundamental in the banks’ activities and provide a significant share of their income. Under an increased demand for credit resources, credit risks are growth. It keeps the importance of the problem of an increase in the efficiency of lending management processes in financial institutions. The aim of the work is the justification and development of new technology and models for the management of bank lending that reduce credit risks and increases lending efficiency. The research materials are statistical data from the Bank of Russia and Rosstat. The methods of system analysis, methods of control theory, methods of statistics, optimization methods and machine learning are used. The positive results of the implementation of the proposed technology and credit management models are of practical importance to ensure the profitability growth of credit organization and contribute to its competitiveness.

scholarly journals Methods for analyzing the quality of a banks loan portfolio

2020 ◽  
pp. 35-40
Author(s):  
Tetiana BELIKOVA ◽  
Marharyta PUSHKINA
Keyword(s):  
Portfolio Management ◽  
Quality Management System ◽  
Bank Loan ◽  
Risk Indicators ◽  
Loan Portfolio ◽  
Advantages And Disadvantages ◽  
Definition Of ◽  
Credit Portfolio ◽  
Credit Portfolio Management

Lending is one of the major banking institutions. But lending has some risks of varying degrees. The main purpose of banks is to repay loans and to maximize profits. To do this, banks need to implement an efficient, flexible and modern credit portfolio quality management system. An important element of this system is the analysis of the quality of the loan portfolio. That is why the consideration of the methods by which banks can carry out this analysis is a very actual topic. The purpose of this paper is to review methods of analyzing the quality of a bank's loan portfolio, as well as to outline the disadvantages and benefits of each method. The paper examines the most common and modern approaches to defining the concept of «bank loan portfolio». The types of loan portfolio are considered. The definition of the quality of the bank loan portfolio is given. The definition of bank credit portfolio management is given and the basic elements of credit portfolio management are given. The main methods to be used in assessing the quality of a bank's loan portfolio are identified. They are divided into three groups: methods of expert judgment, statistical and analytical methods. A more detailed description of the methods in the three groups listed above is given. The rating method, the «Decision Tree» method, coefficient analysis, Monte Carlo method, scoring, correlation-regression analysis, taxonomic analysis and stress testing are characterized. The advantages and disadvantages of each method are also given. Indicators to assess the quality of the bank's loan portfolio are considered: the credit portfolio risk indicators and the profitability of credit operations. After the study, it was concluded that the above methods of analysis of the quality of the loan portfolio should be applied comprehensively. It is determined that currently the banks of Ukraine do not use the whole analytical set of methods, but choose for themselves several and constantly use them in the analysis of the quality of the loan portfolio. In order to ensure effective management of the bank's credit portfolio, it is necessary to constantly monitor the quality of the bank's credit portfolio for early detection of credit risk and its prevention, as well as for detection of deterioration of profitability indicators.

scholarly journals Psychological and Pedagogical Features of Training Future Teachers (Primary School)

2021 ◽  
Vol 7 (2) ◽  
pp. 125-131
Author(s):  
Tetiana D. Shсherban ◽  
Ganna V. Schcherban
Keyword(s):  
Higher Education ◽  
Primary School ◽  
Professional Training ◽  
System Analysis ◽  
Practical Importance ◽  
Future Teachers ◽  
School Teachers ◽  
Primary School Teachers ◽  
Effective Development

The relevance of the study is conditioned by the increasing requirements for the quality of psychological and specialised training of modern primary school teachers, as well as the need to increase the level of their professional competences in the context of current changes in secondary education. The main purpose of this study is an objective analysis of the features of psychological and pedagogical training of future primary school teachers, carried out to determine the most effective and currently available methods of professional training of future teachers in higher educational institutions. The leading approach in this study was a combination of methods of system analysis of the training of future primary school teachers in the system of higher education and analytical research of modern methods of improving the psychological stability of future teachers and the development of their professional competences. The results of this study indicate the importance of the subject matter, the need to find new opportunities for pedagogical skills and psychological stability of future primary school teachers in the context of trends in the modern education system and in terms of prospects for its further effective development. The results and conclusions of this study are of great practical importance both for the compilers of curricula responsible for the final quality of professional training of future primary school teachers, and for teachers of higher education institutions who conduct classes on pedagogical and psychological training of these professionals and pedagogical university students that have chosen a specialty related to teaching in primary school

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