home Debit cards The main stages of processing and issuing loans. The main stages of lending in a commercial bank. Recommendations for improving the lending process of Home Credit Bank

The main stages of processing and issuing loans. The main stages of lending in a commercial bank. Recommendations for improving the lending process of Home Credit Bank

Organizing a credit transaction between a bank and a borrower is a procedure adopted in a particular bank for considering a client’s request for a loan and making a decision, conclusion loan agreement, issuance and repayment of loans, monitoring the completeness and timeliness of its repayment.

The lending mechanism and the organization of relevant work by each bank are determined independently on the basis of current recommendations of the Central Bank, and are reflected in the Lending Regulations approved by the bank.

In this process, the loan issuance is divided into a number of interrelated stages, at each of which the bank has to solve special problems.

Stage 1 . The initial stage of organizing a loan transaction is submitting a loan application and submitting the necessary documentation by the client.

To obtain a loan, the borrower contacts a bank loan officer, who, during a preliminary conversation, decides to consider the loan application. If the decision is positive, the client is provided with a memo with a list of documents required for consideration of the application.

To obtain a loan, borrowers provide the bank with the following documents:

— application to the bank manager with a request for a loan(in any form indicating the amount, term, purpose of the loan, proposed collateral, sources of repayment);

— loan application on standard bank letterhead;

— interview questionnaire on standard bank letterhead;

In the questionnaire, in addition to general information (name of the enterprise, legal address and actual location, organizational and legal form, main founders and their shares in the authorized capital, date of formation and start of operation, presence of branches and subsidiaries, names of banks in which they are located current accounts) borrowers must report:

§ about the main activities, products, services(type of business, period of work in this area of business, name of the main product produced, its share in the total volume, supply, sales, warehousing policies used; share of export patents, trademarks; tax benefits and other advantages);

§ about the company's position on the market(main markets of the enterprise, their capacity; monopoly in the sales market; seasonality of sales, market development forecast; list and characteristics of the main suppliers and buyers, their concentration; main competitors of the enterprise, its advantages and disadvantages over them, turnover on the current account for the last 6 months, etc.);

§ about efficiency economic activity (behind previous years and for the working period of the current year): volume of sales (sales), including on the foreign market, balance sheet profit, cost of production, profitability (to fixed assets, to cost), average turnover of working capital.

— copies of constituent and registration documents, notarized (if the borrower is not a bank client);

- certified in tax office balance for two reporting periods with application financial performance reports;

— transcripts for balance sheet items “Debtors”, “Creditors”, “Fixed Assets”;

— existing loan agreements, including all extensions; pledge agreements with appendices (lists of pledged goods) related to the specified loan agreements; other agreements concluded within the framework of loan agreements;

— feasibility study of the use of credit(technical description of the project, calculation of the borrower’s costs associated with the implementation of the project, sources of loan repayment, calculation of the expected income from the implementation of the loan project, the period required to implement the project, etc.);

— support documents:

§ In case of pledge of inventory items: a list of inventory items (specifications) pledged indicating the specific price and date of purchase; warehouse certificate confirming the availability of goods; documents confirming ownership of this product.

§ In case of pledge of property: an inventory of the property being pledged, accompanied by insurance of the said property against the main types of risk.

§ In case of collateral of production equipment: list of equipment, year and country of origin, book value, degree of wear; inventory list of fixed assets.

§ In case of real estate pledge: real estate documents.

§ In case of pledge of securities: list of securities offered as collateral, par value, year of issue, information about the issuer, maturity date.

§ In case of guarantees from other banks and third-party organizations: guarantee (surety) of the bank signed by the first and second persons with the seal of the bank; guarantor balances for the last two reporting periods with breakdown by timing of raising and disbursing funds, including off-balance sheet accounts.

— documents confirming the purpose of the loan:

§ For trade and purchasing operations: purchase contract indicating terms of payment and delivery, possible penalties, specifications and bank details; warehouse certificate confirming the availability of goods from the seller; quality certificates for purchased goods; an agreement for the sale of purchased goods, indicating the terms of payment and delivery, possible penalties, with specifications and bank details, in the absence of one - a protocol of intent or other implementation options.

§ To replenish working capital: purchase contracts specifying terms of payment and delivery with specifications and bank details; invoices and other documents confirming payment for goods.

§ For production development: business plan.

§ For the purchase of real estate: a package of documents for the purchase of real estate, including indicating the purchase price and the attachment of permitting documentation.

§ For investments in securities : a list of securities that are expected to be purchased with borrowed funds; information about the issuer and seller.

— proposed selection schedule credit funds (in case of an application for a loan under a credit line);

— documents certifying the powers of persons, conducting negotiations on behalf of the borrower;

— passport details of the head of the company and the chief accountant;

— when considering an application, the bank has the right to require the borrower to provide additional documents necessary for the decision to grant a loan.

Stage 2. Consideration of a loan application.

Based on the provided package of documents, the credit, collateral, legal and security services work simultaneously.

At this stage the following is carried out:

· analysis of the client’s financial condition;

· collateral analysis;

· checking the client's integrity.

When considering an application, various sources of information are used:

· materials received from the client;

· materials about the client available in the bank;

· information from suppliers, buyers, creditors, other banks;

· information provided by the security service;

· printing materials;

· credit histories obtained from credit history bureaus.

Each service that reviews the package of documents gives its opinion on the loan application. The conclusion on the issuance of a loan must contain generalized information on the basis of which a decision is made to issue or reject an application for a loan.

Stage 3. Loan authorization

The loan is sanctioned by the coordination (credit) committee of the Bank. At the committee meeting, the conclusion on the loan application is considered. Loan officer reviewing loan application, must himself attend the coordination committee and defend his decision, as well as answer all questions of interest to the committee.

The approval process ensures that the decision made meets the Bank's quality requirements loan portfolio, as well as to ensure that the price of the loan corresponds to the degree of risk assumed by the bank, and that resources are allocated so as to achieve maximum profit within the established risk.

Stage 4. Conclusion of a loan agreement.

Having made a positive decision, the bank negotiates with the client and develops a version of the loan agreement that suits both parties. Each bank has standard loan agreement forms, which may be amended depending on the specific lending conditions. Typically, a loan agreement contains the following sections:

· general provisions;

· rights and obligations of the borrower;

· rights and obligations of the bank;

· responsibility of the parties;

· settlement of disputes;

· additional conditions;

· contract time;

· legal addresses.

Stage 5. Issuance of credit.

In accordance with Bank of Russia Regulation No. 54-P dated August 31, 1998 “On the procedure for providing (placing) credit institutions Money and their return (repayment)" to legal entities, the loan is provided only in non-cash by crediting funds to the borrower’s settlement (current) account, including when providing a loan to pay payment documents and pay salaries. Individuals can receive a loan both non-cash (by crediting to a bank account) and in cash (through the bank's cash desk). Loans in foreign currency are issued to legal entities and individuals only by non-cash payment.

Stage 6. Credit monitoring.

An important stage of lending is control over the spending of the loaned funds, which increases when the bank has doubts about the prospects for repaying the loan.

Control is carried out in the following areas:

for the targeted use of funds taken on credit;

the financial situation of the borrower;

the quality of the collateral (in the case of using collateral as a form of security for loan repayment).

Stage 7. Loan repayment.

Return (repayment) of the loan and payment of interest on it can be made by writing off funds from the borrower’s current account - legal entity according to his payment order, as well as debiting funds in the established order of priority based on the bank’s payment request. In the latter case, the borrower, when concluding a loan agreement, must document his consent to the direct debiting of funds from the current account to repay the loan.

Repayment of loans and payment of interest on them by individual borrowers is carried out by:

— transfers of funds from the accounts of borrower clients based on their written orders,

— transfer of client funds through communications authorities or other credit organizations,

— the latter’s contribution of cash to the cash desk of the creditor bank on the basis of a cash receipt order,

— as well as deductions from amounts due for wages to borrower clients who are employees of the creditor bank (according to their applications or on the basis of an agreement).

Repayment (return) of funds in foreign currency is carried out only by bank transfer.

If there is insufficient funds in the borrower's current account, the bank first collects interest on the loan, then the principal debt.

If the borrower does not pay the due amount within the terms established by the agreement, his debt to repay the principal debt and pay interest is transferred to the account of overdue principal and interest. For overdue loans, the bank sets an increased interest rate.

If it is impossible to collect the loan and interest from the borrower, the bank begins to sell the loan collateral.

If this is not possible or the entire amount of debt is not covered by the sale of collateral, the bank in the prescribed manner repays debt using a reserve for possible loan losses. If the amount of the reserve is not enough to repay the entire debt, the outstanding portion of the loan is attributed to the bank's losses.

Home-How to create your own business- Mechanisms for obtaining loans

Main stages of lending

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First stage: drawing up a loan application. To receive a loan application, you must contact a credit expert at your chosen bank. Many banks post a sample loan application on their website, including a list of necessary documents for applying for a loan.
Please read carefully and prepare the necessary information for your meeting with a loan officer.

How does the process of obtaining a loan by a legal entity take place?

The loan application must contain initial information about the required loan.
. the purpose of attracting a loan that does not contradict the statutory purpose of the borrower;
. loan amount and currency;
. type and repayment period of the loan;
. procedure for loan repayment and interest payment;
. proposed security (pledge of property; guarantees of individuals and (or) legal entities who have funds to repay the loan; surety);
. deposits, liquid securities, etc.

Second phase: analysis of the creditworthiness of a possible borrower and assessment of the quality of the application. Obtaining a loan begins with an assessment of title documents. If the enterprise is correctly registered legally, operates legally, pays taxes, then all this will allow the bank to do some business with it due to compliance with all legal aspects existence. Each bank provides its own list of necessary documents to verify the legal purity of the company’s activities, although their set is more or less standard. The title documents that the Applicant will need (copies with presentation of the originals) when applying for a loan are as follows:
— Charter;
- Memorandum of association;
— Decision to create an enterprise (extract from the protocol);
— Certificate of state registration;
— Protocol on the appointment of a manager;
— Order on assuming the position of a manager and appointing a chief accountant;
— Passports of the manager, chief accountant, founders;
— Certificate of registration in tax authority;
— Information letter about registration in the Statregister of Rosstat;
— Permission to engage in certain types of activities (license), if these types of activities are subject to licensing in accordance with current legislation.
Then the bank analyzes the statements and the actual condition of the borrower. As part of this stage, an analysis of the accounting (Form 1 and Form 2 accounting statements) is carried out. After checking the accounting and management reporting, there follows a check, or rather a reconciliation of the actual business with the documents financial statements. The purpose of these checks is to compare the data in financial and other documents with the actual existing and operating business.
Next, the bank determines whether the borrower will be able to receive income in the future that can cover payments on the stated loan amount, and at the same time maintain the financial stability of the company. The process of obtaining a loan ends with an assessment of the enterprise’s collateral.

Third stage: loan processing. A loan transaction is completed by concluding a loan agreement between the lender and the borrower. It reflects: the purpose, term, size, interest rate, mode of use of the loan account, the procedure for repaying the principal amount and interest on it, types and forms of verification of collateral.
The agreement must indicate the interest rates on loans, the cost banking services and deadlines for their implementation, including processing times payment documents, property liability of the parties for violation of the contract, including liability for violation of obligations regarding the timing of payments, and other essential terms of the contract.
The loan agreement must be drawn up only in writing. Standard forms of loan agreements are developed by the banks themselves, taking into account the recommendations of the Bank of Russia.
To monitor compliance with the terms of the agreement and the progress of loan repayment, a credit dossier is generated that contains all the information on the loan transaction and the necessary information about the borrower.
Before signing the contract, you must read it carefully and ask questions if you have any. The lender's representative must give a comprehensive answer to them.

Fourth stage: loan repayment and control over compliance with the terms of the loan agreement. Any lending program provides for credit monitoring aimed at reducing the lender's risk. Credit monitoring includes a system for monitoring the repayment of loans, development and adoption of measures to ensure the solution of the task.

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2.
Bank loan

Loan process

The lending process consists of a number of stages. In this article we will look at the main stages of the process bank lending. It should be noted that there are no uniform standards in lending, because The lending procedure itself may differ significantly not only in different banks, but also within the same bank for different segments or loan products. For example, lending to a large investment project of a legal entity will require not only the collection of a larger package of documents for issuing a loan, but also the involvement of a larger number of bank services (legal service, appraisal service, etc.), and the process of documenting a credit transaction will become more complicated (notary drawing up contracts, entering information on collateral into various registers of encumbrances, finalizing loan agreements in terms of introducing various covenants and restrictive conditions, etc.). At the same time, in consumer lending for small amounts, the lending process is carried out according to a very simplified scheme, and the process of analysis through credit scoring, processing a transaction and issuing a loan (credit card) can take from 15 minutes to several hours.

In most cases, the bank lending process includes the following: lending stages(see picture).

Let's take a closer look at these stages of lending.

First stage of lending: review and analysis of the package of documents provided by the borrower

To obtain a loan, the borrower must prepare a certain package of documents, the requirements for which are determined by each bank independently and depend both on the type of borrower (legal entity or individual) and on the nature of the project being financed ( intended purpose use of loan funds). As a rule, the package of documents for issuing a loan includes two main blocks: legal and economic.

The legal block includes title documents confirming the legitimacy and authority of a person, property, etc. These are, in particular, the constituent agreement, the charter of the enterprise, copies of registration certificates, obtained licenses, patents, powers of the company’s top officials (appointment order, copies of passports and identification codes), documents confirming ownership of the property pledged, and etc.

The economic block includes documents confirming the financial and economic condition of the borrower and the project being financed: the company’s accounting statements and transcripts thereto, certificates of income of an individual, business plan or feasibility study of the project, design estimates, tax returns, financial statements audit, balances and cash flows on accounts opened in other banks, etc.

After collecting the necessary package of documents, their subsequent analysis is carried out.

At this stage of lending, various bank services are involved in the preparation of appropriate conclusions: credit, legal, security and assessment of collateral.

The credit service assesses the solvency and creditworthiness of the borrower, determines its internal credit rating, analyzes the feasibility study of the project, assesses the adequacy of the requested loan amount, checks the calculation of the payback period of the investment project, etc.

The legal service determines the legal status of the borrower, checks his powers, legal capacity, compliance of the enterprise’s activities with its charter and the requirements of current legislation, analyzes title documents for collateral, etc.

The banking security service checks the business reputation of the borrower (including its founders and top officials of the company), the presence of negative information in various databases, incl.

Discovered

to the Credit History Bureau, criminal record, etc.

The appraisal service determines the collateral value of the property offered as security for obligations. Also, such an assessment can be carried out by third parties - independent experts.

The second stage of lending: making a decision to grant or refuse a loan

Based on the conclusions of various bank services prepared at the previous stage of lending, a decision is made to issue or refuse to issue a loan. Such a decision is made collectively by the relevant body of the bank, depending on the scope of powers granted to it. This may be a credit commission, a credit committee, an asset and liability management committee, a board or a supervisory board of the bank.

In some cases, for example in consumer lending for small amounts, the decision to issue can be made automatically by the bank’s software package or by verifying the scoring data by a credit expert. But even in this case, the general lending parameters ( scoring model) are initially approved by the collegial credit body.

The third stage of lending: processing the loan

At this stage of lending, based on the decision of the credit authority to issue a loan, the relevant agreements are prepared and signed: loan agreement, collateral, surety, guarantee, etc. After signing the pledge agreements, information about the encumbrance is entered into the relevant state registers.

The formation of a credit file and the opening of loan accounts are also carried out.

Collateral property is insured in favor of the lender (bank). For this purpose, as a rule, a tripartite agreement is concluded between the insurance company, the mortgagor and the bank. The role of mortgagor can be either the borrower himself or a third party - a property guarantor.

The fourth stage of lending: loan support (credit monitoring)

The main task of the credit service at this stage of lending is to constantly monitor the borrower’s progress in fulfilling the terms of the loan agreement, changes in his financial condition, promptly identify negative trends in the work of the borrower (guarantor) and timely take measures to reduce the risks of untimely repayment of the loan.

In the process of credit monitoring, the presence and state of safety of collateral, changes in its market value are also monitored, and payment of insurance premiums is monitored. insurance policy and so on.

If the borrower's financial condition deteriorates and problems arise with debt servicing, a more detailed analysis is carried out in order to identify the reasons that led to this situation. If the problems are temporary, the borrower is usually offered various options for debt restructuring.

Fifth stage of lending: loan repayment

After full repayment The borrower closes the loan accounts and transfers the loan file to the archive.

If problems arise with debt repayment, the collection service is activated. The bank is interested in pre-trial settlement of the dispute, but if the borrower evades fulfilling its obligations, then forced collection of the debt is carried out in court.

To summarize, it should be noted that high-quality completion of each stage of lending helps reduce the level of credit risk.

Topic 8. BANKING SYSTEM

Banking system and its structure. Banks are financial intermediaries, since, on the one hand, they accept deposits, attracting money from savers, i.e., they accumulate temporarily free funds, and on the other hand, they provide these funds at a certain percentage to economic agents who need them, i.e. e. issue loans. Thus, banks are intermediaries in credit, so the banking system is part credit system. Credit system consists of banking and non-banking (specialized) credit institutions. TO non-banking Credit institutions include funds (investment, pension, etc.), insurance companies, savings and loan associations, credit unions, pawnshops, etc., i.e., all organizations that perform the functions of intermediaries in credit.

Main financial intermediaries are commercial banks. The word "bank" comes from the Italian word "banco", which means "bench [of the money changers]". The first banks with modern accounting principle double entry appeared in the 16th century. in Italy, although usury (lending money) as the first form of credit flourished even before our era. First special credit institutions originated in the Ancient East. Credit functions in Ancient Greece and Ancient Rome were performed by temples, and in medieval Europe - by monasteries.

Modern banking system two-level. The first level is the central bank (CB), the second level is the system of commercial banks.

Functions of the central bank. The Central Bank is main bank countries. In the USA it is called the Fed (Federal Reserve System), in the UK - the Bank of England, in Germany - the Bundesbank, in Russia - the Central Bank Russian Federation(Bank of Russia).

The Central Bank, being emission center of the country, has a monopoly right to issue banknotes, which provides it with constant liquidity. Central Bank money consists of cash (banknotes and coins) and non-cash money (commercial bank accounts with the central bank).

Being government banker The Central Bank serves the financial transactions of the government, mediates treasury payments and lends to the government. The Treasury stores free monetary resources in the central bank in the form of deposits, and it, in turn, gives the Treasury all its profits in excess of a certain, predetermined norm.

The central bank is also bank of banks, i.e. commercial banks act as clients of the Central Bank, which stores required reserves, which allows it to control and coordinate their internal and foreign activities. In addition, he performs lender of last resort for struggling commercial banks, providing them with credit support through the issuance of money or the sale of securities.

In addition, the Central Bank performs the functions interbank settlement center And custodian of the country's gold and foreign exchange reserves. In this latter capacity, the Central Bank serves the country's international financial transactions and controls the state of the balance of payments, acting as a buyer and seller in international currency markets.

The Central Bank determines and implements monetary(monetary) politics.

Commercial banks and their operations. Bank reserves.

The second level of the banking system consists of commercial banks. Distinguish universal And specialized commercial banks. Thus, banks can specialize, for example: 1) in goals: investment (lending to investment projects), innovative (issuing loans for the development of scientific and technological progress), mortgage (issuing loans secured by real estate); 2) by industries: construction, agricultural, foreign economic; 3) by clients: serving only firms, serving only the population, etc.

Commercial banks are private organizations that have the legal right to attract available funds and issue loans for the purpose of making a profit. Therefore, commercial banks perform two main types of operations: passive– to attract deposits and active- for issuing loans. In addition, commercial banks carry out cash settlement, trust (trust), interbank operations (credit - for issuing loans to each other and transfer - for transferring money from account to account), operations with securities, operations with foreign currency, etc.

Main part income a commercial bank is the difference between interest on loans and interest on deposits (deposits).

Additional sources of bank income can be commissions for the provision of various types of services (cash settlement, trust, transfer, etc.). Part of the income goes to pay the bank’s costs, which include wages of bank employees, costs for equipment, for the use of computers, cash registers, for renting premises, etc. The amount remaining after these payments is the bank’s profit, from which dividends are paid to holders shares of the bank, and a certain part can be used to expand the bank’s activities.

Historically, banks largely originated from jewelry stores. Jewelers had reliable, guarded basements for storing jewelry, so over time, people began to give them their valuables for safekeeping, receiving in return IOUs jewelers, certifying the possibility of receiving these valuables back upon request. This is how bank credit money arose.

At first, jewelry makers only kept the valuables provided to them and did not issue loans. This means that all funds received were kept in the form reserves. This situation corresponds to the system full, or 100 percent, reservations. In this case, if the bank received a deposit of $1000 ( D= $1000), then the bank’s liabilities (liabilities) will be $1000, and its reserves (assets) will also be equal to $1000 ( R= $1000), since they will not be issued on credit ( TO= $0). A simplified bank balance sheet under a full reserve system will look like:

Under these conditions, the bank ensures 100 percent solvency and liquidity. Solvency bank means that the value of its assets must be equal to its debt, which allows the bank to return to all depositors the amounts of deposits placed in it upon first demand. Liquidity- this is the bank’s ability to return deposits to any number of customers in cash. However, under a full reserve system, since the bank does not issue loans (hence, does not receive interest on loans) and stores all reserves in the form of banknotes (which does not generate income, unlike, for example, bonds), it not only deprives itself of profits, but does not even have the opportunity to pay its costs. The relationship between solvency (and liquidity) and profitability is inverse:

By not issuing loans and maintaining 100 percent solvency and liquidity, the bank completely eliminates risk and ensures the full confidence of depositors, but does not make a profit. To exist, a bank must take risks and make loans. The larger the amount of loans issued, the higher both the profit and the risk.

The main source of banking funds that can be provided on credit are demand deposits, funds in current and current accounts. Bankers around the world have long understood that, despite the need to maintain solvency and liquidity, a bank's daily liquid funds should be approximately 10% of the total funds deposited with it. Since, according to the theory of probability, the number of clients wishing to withdraw money from the account is equal to the number of clients depositing money, banks began to issue loans and switched to a system partial reservation. Fractional reserve means that only a certain portion of the deposit is kept as reserves and the rest is used to make loans.

In the last century reservation rate(rr), i.e. the share of deposits that could not be issued on credit (the share of reserves in the total amount of deposits: rr = R/D), was determined empirically, by trial and error. In the 19th century. The reserve rate was set by the commercial banks themselves and was quite high - usually 20% (due to numerous bankruptcies, banks were cautious).

Under a fractional reserve system, a simplified bank balance sheet will look like:

If the bank receives a deposit of $1000 ( D= $1000), then in accordance with the reserve norm established by the bank, equal to 20%, the bank stores $200 in a safe in the form of reserves ( R = D? rr= $1000 ? 0.2 = $200), and gives out $800 on credit ( K = D – R= $1000 – $200 = $800, or K = D – rr? D=D(1-rr) = $1000 ? (1 – 0.2) = $800).

At the beginning of the last century, due to the instability of the banking system, frequent banking crises and bankruptcies, the function of establishing the norm of bank reserves in order to control the work of commercial banks was taken over by the central bank (in the USA this happened in 1914). This quantity, called required reserve norms(reserve requirement ratio) is the percentage of total deposits that commercial banks are not allowed to lend and which they keep with the central bank as non-interest-bearing deposits.

In order to determine the amount of required reserves of the bank ( R obligation), you need the amount of deposits ( D) multiplied by the required reserve ratio ( rr):

Robligation = D? rr.

With a full reserve system, the required reserve rate is 1, and with a partial reserve system it is 0< rr< 1.

If you subtract the amount of required reserves from the total amount of deposits, you get the amount that the bank can issue on credit, i.e., the amount of its lending capabilities ( TO):

К = D – Robligation = D – D ? rr = D (1 – rr).

If the bank issues all these funds on credit, this means that it uses its credit capabilities fully.

However, the bank may not do this, and retain part of the funds that it could issue on credit in the form of reserves. This value is excess reserves jar ( R hut). The sum of required and excess reserves is actual reserves jar:

Rfact = Roblig + Rex.

With a reserve requirement ratio of 20%, having deposits of $1,000, the bank must keep $200 ($1,000 × 0.2 = $200) as required reserves, and the remaining $800 (1,000-200 = 800) he can give on credit. However, the bank can lend only part of this amount, for example $700. In this case, $100 (800–700 = 100) will constitute its excess reserves. As a result, the bank's actual reserves will be $300 ($200 required reserves + $100 excess reserves = $300).

If a bank holds excess reserves (above mandatory ones), then its reserve ratio will be equal to the ratio of actual reserves to deposits ( R fact / D) and, therefore, will be the sum of the required reserve ratio and the excess reserve ratio. In this case, the amount of funds actually issued on credit ( TO fact), will be less than the bank’s credit capabilities ( TO fact< TO) and can be calculated using the formula

Kfact = D – R fact.

IN modern conditions The balance sheet of a commercial bank has the following structure:

The right side of the balance sheet reflects the sources of funds (liabilities) and the bank’s equity capital, and the left side shows the directions for using depositors’ funds. The main balance sheet identity of a commercial bank is the equality of the sum of its liabilities and equity capital to the total amount of assets.

The balance sheet of the central bank is:

The central bank only controls the supply of money in the economy. Commercial banks create money.

Money creation by commercial banks. Banking multiplier. The process of creating money by commercial banks is called credit expansion, or credit animation. It occurs when banking sector money comes in and commercial bank deposits increase, that is, if cash turns into non-cash money. If the value of deposits decreases (the client withdraws money from his account), the opposite process occurs - credit contraction.

When considering the credit extension process, keep in mind that:

> firstly, money can only create universal commercial banks. Neither non-bank credit institutions nor specialized banks can create money;

> secondly, universal commercial banks can create money only under the conditions of the system partial reservations. If the bank does not issue loans, the money supply does not change, since the amount of cash received on deposit is equal to the amount of reserves stored in the bank's safe. Therefore, there is only a redistribution of funds between money outside the banking sector and money inside the banking system within the same amount of money supply. Thanks to the fractional reserve system, the maximum increase in the supply of money occurs provided that: a) commercial banks do not store excess reserves and issue loans in excess of the required reserves; this means that they use their credit capabilities fully and the reserve ratio is equal to the required reserve ratio; b) once in the banking sector, money does not leave it and, being issued on credit to the client, does not end up with him in the form of cash, but is returned to the banking system (credited to a bank account).

Suppose that Bank I receives a deposit equal to $1,000 and the required reserve ratio is 20%. In this case, the bank must contribute $200 to required reserves ( R obligation = 1000 ? 0.2 = 200) and his credit capacity will be $800 ( TO= 1000 ? (1–0.2) = 800). If the bank issues this entire amount on credit (fully uses its credit capabilities), then its client (any economic agent, since the bank is universal) will receive a loan of $800.

Bank balance I

The client uses the funds received to purchase the goods and services he needs (the company – investment, and the household – consumer or for the purchase of housing), creating income (revenue) for the seller, which will go to his (the seller’s) current account in another bank (for example, Bank II ).

Bank II, having received a deposit equal to $800, will contribute $160 to required reserves (800 × 0.2 = 160), and its lending capacity will be $640 (800 × (1–0.2) = 640).

Bank balance II

By issuing this entire amount on credit, the bank will enable its client to pay for the transaction (purchase) for this amount, i.e., it will provide revenue to the seller. The $640 deposit will go into that seller's bank account III. Bank III's required reserves will be $128 (164 × 0.2 = 128), and its lending capacity will be $512 (640 × (1–0.2) = 512).

Bank balance III

By providing a loan for this amount, Bank III will create the preconditions for increasing the credit capabilities of Bank IV by $409.6, Bank V by $327.68, etc. We get a kind of pyramid:

This is the process of deposit expansion.

The total amount of money (total deposits of bank I, II, III, IV, V, etc.) created by commercial banks will be:

M = DI+ DII+ DIII+ D V + DV + … = D + D ? (1– rr) + ? (1 – rr) + ? (1 – rr) + ?(1 – rr) + ? (1 – rr) +… = 1000 + 800 + 640 + 512 + 409.6 + 327.68 +…

Thus, we have obtained the sum of an infinitely decreasing geometric progression with the denominator (1 – rr), i.e., a value less than 1. In general, this amount will be equal to:

M = D?

=D? (1/rr). In our case M = rr 1000? (1 / 0.2) = 1000 ? 5 = 5000. Value 1 / is called banking (or credit)

multiplier:

multbank = 1/rr. Another name for it is deposit expansion multiplier (deposit multiplier). All these terms mean the same thing, namely: if commercial bank deposits increase, then money supply

increases to a greater extent, i.e.

M = D? mult bank.

For example, in the USA the bank multiplier is 2.7. The bank multiplier shows the total amount of deposits that the banking system can create from each monetary unit

The multiplier works in both directions. The money supply increases as money enters the banking system (deposits increase) and decreases as money leaves the banking system (withdrawals). And since, as a rule, in the economy, money is simultaneously invested in banks and withdrawn from accounts, the money supply cannot change significantly. Such a change can only occur if the central bank changes the required reserve ratio, which will affect the lending capacity of banks and the size of the bank multiplier. It is no coincidence that changing the required reserve rate is one of the instruments of the Central Bank's monetary policy (policy for regulating the money supply).

Using the bank multiplier, you can calculate not only the amount of money supply ( M), but also its change. Since the value of the money supply consists of cash and non-cash money (funds in current accounts of commercial banks), i.e. M= WITH+ D, then the money ($1000) on deposit of bank I came from the sphere of cash money circulation, i.e. they already formed part of the money supply and there was only a redistribution of funds between WITH And D. Consequently, the money supply as a result of the process of deposit expansion increased by $4,000.

(M–D I = 5000–1000 = 4000), i.e.

Main stages of the loan process

That is, commercial banks created money exactly for this amount. This is the result of their lending, so the process of increasing the money supply began with an increase in the total amount of deposits of Bank II as a result of Bank I extending credit to its customers for the amount of its credit capacity equal to $800. Therefore, the change in money supply can be calculated using the formula:

M = DII + DIII + DIV + DV + … = D? (1 – rr) + ? (1 – rr) + ? (1 – rr) + ? (1 – rr) + ? (1 – rr) +… = 800 + 640 + 512 + 409.6 + 327.68 +… = 800 ? (1 / 0.2) = 800 ? 5 = 4000,

?M = ? (1/rr) = K? (1/rr) = K? multbank = 800 ? (1 / 0.2) = 4000.

Thus, changes in the money supply depend on two factors: the amount of commercial bank reserves issued on credit and the amount of the bank multiplier. By influencing one or both factors, the Central Bank can change the amount of money supply by pursuing monetary policy.

Credit is a fairly common concept nowadays, but few people know all the pitfalls that lie behind this concept. In a broad sense, a loan is a conclusion between a lending company (for example, a bank) and a borrower of a transaction to provide funds under certain conditions. The need to get a loan can be due to various reasons and the inability to borrow money from relatives or friends.

Reasons for taking out a loan:
1. Purchase of real estate;
2. Repayment of an early loan;
3. To promote the business as initial capital;
4. Training;
5. Illness.
The main types of loans provided by banks are:
1. Consumer (loan for household appliances, furniture);
2. Mortgage (loan for the purchase of real estate);
3. Car loan (loan to buy a car);
4. Overdraft (repayment of a loan on a current account).

Nowadays, you can already purchase any item on credit. In principle, it is very convenient. Especially for those who don’t have a lot of money to buy goods right now.

In order to purchase goods in installments you must:
- find out the conditions for obtaining a loan,
- apply for a loan,
- get a loan.

It should be noted that obtaining a loan from a bank is not a quick and complex process that requires a thorough study of issues such as loan conditions and requirements.

Remember that the loan is issued to persons 18 years of age and older. Each bank sets its own age restrictions. Before applying for a loan, first of all, you need to weigh the pros and cons and realistically assess your capabilities. Taking is always simpler and easier than giving. Do not forget that when applying for a loan, the recipient bears legal responsibility.

So, the first thing you need to do is decide on the choice of bank. Then come to the manager, familiarize yourself with the terms of the loan, paying attention to the interest rate (the lower it is, the better for you), the loan term, and the monthly repayment amount. Ask for a calculation monthly payment before applying for a loan, since all payments will already be made into it, that is, the final amount. And only after all the conditions put forward by the bank become clear and acceptable, you can begin to conclude an agreement.

The loan is received after the client provides a certain package of documents, as well as when a positive decision on lending is made (each bank is different, on average from three to ten days). It should be noted that the package of documents will vary depending on the loan amount. And only after a positive decision, the client can receive a loan.

Then you will have to pay a certain amount monthly, thereby repaying the loan. It will already be installed credit institution, because each bank has its own conditions for obtaining and repaying a loan.

The recipient must keep a copy of the agreement concluded with the company. Always keep your payment receipts, which may be the only proof of your successful repayment in the future.

Please read the article:

The lending process consists of a number of stages. In this article we will look at the main stages of the bank lending process. It should be noted that there are no uniform standards in lending, because The lending procedure itself may differ significantly not only in different banks, but also within the same bank for different segments or loan products. For example, lending to a large investment project of a legal entity will require not only the collection of a larger package of documents for issuing a loan, but also the involvement of a larger number of bank services (legal service, appraisal service, etc.), and the process of documenting a credit transaction will become more complicated (notary drawing up contracts, entering information on collateral into various registers of encumbrances, finalizing the introduction of various and restrictive conditions, etc.). At the same time, in consumer lending for small amounts, the lending process is carried out according to a very simplified scheme, and the process of analysis through, execution of a transaction and issuance of a loan () can take from 15 minutes to several hours.

In most cases, the bank lending process includes the following: lending stages(see picture).

Main stages of lending

Let's take a closer look at these stages of lending.

First stage of lending: review and analysis of the package of documents provided by the borrower

To obtain a loan, the borrower must prepare a certain package of documents, the requirements for which are determined by each bank independently and depend both on the type of borrower (legal entity or individual) and on the nature of the loaned project (the intended purpose of using the loan funds). As a rule, the package of documents for issuing a loan includes two main blocks: legal and economic.

The economic block includes documents confirming the financial and economic condition of the borrower and the loaned project: the company and its transcripts, certificates of income of an individual, or a feasibility study of the project, design estimates, tax returns, financial audit reports, balances and movement funds from accounts opened in other banks, etc.

After collecting the necessary package of documents, their subsequent analysis is carried out. At this stage of lending, various bank services are involved in the preparation of appropriate conclusions: credit, legal, security and assessment of collateral.

The credit service evaluates the borrower, determines its internal value, analyzes the feasibility study of the project, assesses the adequacy of the requested loan amount, checks the calculation, etc.

The banking security service checks the business reputation of the borrower (including its founders and top officials of the company), the presence of negative information in various databases, incl. c, having a criminal record, etc.

The appraisal service determines the collateral value of the property offered as security for obligations. Also, such an assessment can be carried out by third parties - independent experts.

The second stage of lending: making a decision to grant or refuse a loan

Based on the conclusions of various bank services prepared at the previous stage of lending, a decision is made to issue or refuse to issue a loan. Such a decision is made collectively by the relevant body of the bank, depending on the scope of powers granted to it. This could be a credit commission, an asset and liability management committee, a board or a bank's supervisory board.

In some cases, for example for small amounts, the decision to issue can be made automatically by the bank’s software package or by verifying the scoring data by a credit expert. But even in this case, the general lending parameters () are initially approved by the collegial lending body.

The third stage of lending: processing the loan

The formation of a credit file and the opening of loan accounts are also carried out.

The fourth stage of lending: loan support (credit monitoring)

The main task of the credit service at this stage of lending is to constantly monitor the borrower’s progress in fulfilling the terms of the loan agreement, changes in it, promptly identify negative trends in the work of the borrower (guarantor) and timely take measures to reduce the risks of untimely repayment of the loan.

Fifth stage of lending: loan repayment

After the borrower has fully repaid the loan debt, the loan accounts are closed and the loan file is transferred to the archive.

If problems arise with debt repayment, the service is activated. The bank is interested in pre-trial settlement of the dispute, but if the borrower evades fulfilling its obligations, then forced collection of the debt is carried out in court.

To summarize, it should be noted that high-quality completion of each stage of lending helps to reduce the level.

Each bank has developed its own lending technology, which involves a sequence of studying and passing documents with making a decision at each stage of their consideration. The lending process can be divided into several stages, each of which contributes to the quality characteristics of the loan and determines the degree of its reliability and profitability for the bank.

The loan process includes several stages: preparatory, assessing the creditworthiness of borrowers, concluding a loan agreement, credit monitoring and loan collection. Each of them contributes to the quality characteristics of the loan and determines the degree of its reliability and profitability (see table 1)

Table 1 - Stages of organizing the credit process

Lending stages	Regulated parameters and procedures
1. Preparatory	Receiving a client’s application (application) for a loan and transferring it to the lending department. Conducting negotiations with a potential borrower. Checking data for compliance with lending parameters (purpose of lending, its size, period and date of payment)
2. Credit assessment	Assessment of the borrower's financial situation. Studying credit history borrower. Determining the credit limit. Evaluation of additional loan repayment collateral. Determination of the lending regime.
3. Applying for a loan	Loan structuring. Development of credit conditions. Conclusion of a loan agreement. Technological procedure for issuing a loan.
4. Credit monitoring and loan repayment	Monitoring the execution of loan agreements. Making decisions to change loan terms. Loan collection.

On preparatory stage meeting with a potential borrower takes place. The client’s field of activity and product sales directions are studied. When a loan application is processed by a loan manager, its compliance or non-compliance with the primary criteria is determined, i.e. general rules lending and internal bank regulations on credit policy issues. If the loan application does not meet the bank’s primary criteria, the loan manager prepares a conclusion on the impossibility of granting a loan. If the provision of a loan is considered appropriate for the bank, they proceed to the second stage of the loan process.

Analysis and assessment of the borrower’s creditworthiness is necessary in order to decide whether it is worth giving him a loan and, if so, on what conditions: amount provided by the bank, term, interest rate, interest payment schedule and the “body” of the loan, the need for collateral on it and the like. This is done in order to minimize the risks associated with non-payment or late payment as much as possible. .

Assessing the borrower's creditworthiness, which is understood as his ability and willingness to repay the principal amount of debt and interest on time and in full, involves an analysis of his reputation and solvency.

There are several important principles on the basis of which the question of whether or not to give a loan to a particular borrower is decided:

1. Risks of fraud on the part of the client, as well as significant changes in the capital market. They are no less important factors in making the final decision than assessing the creditworthiness of the person taking the loan.
2. During the assessment, the division of income and expenses of the borrower and the business operation (that is, the project) must be taken into account.
3. It is required to monitor how the client manages the lender’s funds, the so-called “loan support”.
4. Assessing the borrower’s risks also necessarily requires consideration on the part of the lender. It includes an assessment of its current financial condition, as well as prospects. It is necessary that the borrower provides the most complete and reliable information on this issue.

Assessing the creditworthiness of an individual borrower differs from a similar process for legal entities. Credit assessment procedure individuals carried out primarily on the basis of information regarding their level of income. At this stage, a scoring assessment of the borrower and a study of his credit history are also required. The level of income is assessed based on data not only about income itself, but also about the degree of risk of losing it. It is possible to determine your income level by studying the provided salary certificates or tax returns.

There are several approaches to assessing creditworthiness, such as assessing the creditworthiness of an individual using quantitative rating models and subjective assessments of loan officers, statistical models and automated systems scoring - theoretically justified, applicable in practice, and have certain advantages. The main disadvantages include the following: banks take into account the total income of a family in rare cases, which significantly narrows the circle of potential borrowers; additional sources of income of the borrower are not taken into account; there is no possibility of lending to individual, “non-standard” categories of borrowers; a significant number of refusal decisions on the scoring system, due to its conditional nature, manifested in refusals to all persons who, according to formal criteria, are close to clients with a bad credit history. As a result, banks lose potential clients, income, competitive advantage, and individuals cannot get a loan.

According to Kovalenko O.A.

in case of refusal under the system of providing loans - scoring, or lending to certain categories of individuals, it is necessary to apply a methodology for assessing payment and creditworthiness. The essence of this approach is the possibility of providing loans to certain categories of borrowers who have individual risk factors, which are proposed to be understood as a set of individual unique personal characteristics of an individual, which together make it possible to qualitatively assess the characteristics of a “non-standard” client for the purpose of effective lending.

Figure 1 shows a diagram of the approach to assessing the creditworthiness of certain categories of borrowers - individuals.

Figure 1 - Block - diagram of the approach to assessing the creditworthiness of certain categories of borrowers - individuals

Assessing the creditworthiness of the borrower’s enterprise or any other legal entity wishing to receive a loan includes two key points:
1. financial analysis, which is carried out on the basis of a system of certain financial indicators;

A qualitative methodology for assessing the creditworthiness of a bank borrower is based on the use of information that cannot be expressed in any quantitative terms. During such an analysis, the bank studies the business reputation of the potential borrower, that is, the level of qualifications of its management team, honesty, integrity, experience in a particular industry, staff turnover rates, as well as timely payment of past loans. Also, assessing the creditworthiness of bank borrowers involves a thorough study of their economic environment - the level of competitiveness of manufactured products, main business partners, stability of the sales market and other indicators. At this stage, the bank can use information that was collected both by itself and by other banks or credit bureaus.

Assessing the borrower's financial condition in the vast majority of cases is the final stage of assessing creditworthiness. Its essence is to determine such indicators as liquidity and equity ratios, profitability and turnover ratios, as well as indicators of financial stability and sustainability.

The results of calculations of these indicators give the bank the opportunity to make a conclusion about the creditworthiness of possible borrowers, which, in turn, is directly dependent on the class of each of the calculated indicators. If there is a significant discrepancy between the levels of actual coefficient values, then classifying a particular client into any class becomes much more difficult. In this case, banks resort to the so-called rating system, which implies the bank itself selects the most important indicators and assigning them a certain weight.

Methodology 1. Rating system for assessing risks for loans to legal entities. Designed to conduct a qualitative assessment of the borrower’s creditworthiness and to make a decision on the possibility of lending. The rating system allows you to obtain a credit score and a recommended decision on the possibility of lending as a result of assessing five components of the analysis:

1) general characteristics client;
2) the financial condition of the client;
3) characteristics of the loaned object;
4) loan security;
5) legal aspects.

Each of the above components of the analysis is assigned a certain weight in the total score. Depending on the number of points scored by the borrower during the analysis, the degree of risk inherent in his lending is determined, as well as the recommended decision to issue a loan.

Decision-making based on determining the risk group for a loan is presented in Table 2.

Table 2 - Relationship between credit score and recommended solution

An important component of a comprehensive assessment of the risk and quality of the borrower using this method is the system for calculating lending limits. It combines one of the methods of protecting a commercial bank from credit risk - by calculating various financial ratios that characterize the borrower.

Methodology 2. Methodology for calculating the credit limit.

The lending limit is an approved indicator that determines in quantitative terms the potentially maximum value within which the bank can carry out credit transactions with a given client.

The methodology for calculating the credit limit is based on a comprehensive analysis of the enterprise’s cash flows in conjunction with its financial condition according to the financial statements: balance sheet; income statement; data on cash flows across all client accounts. Calculation of the lending limit is primary when assessing the quality of the loan and the borrower. The analysis is carried out by comparing the main financial indicators for three years. Data for the analysis of comparative indicators are presented in Table 3.

Table 3 - Comparison data of main indicators and key coefficients

When analyzing creditworthiness, it uses three groups of indicators: profitability, financial condition and asset turnover (see table 4)

Table 4 - Indicators for analyzing the borrower’s creditworthiness

Based on these ratios, the borrower is assigned a rating of an international corporation (D&B rating). Then the maximum possible loan amount is determined, i.e. lending limits. Thus, according to the methodology discussed above for compiling a company’s credit dossier, a credit rating is assigned based on profitability, liquidity, and turnover ratios.

Methodology 3. Methodology for assessing the creditworthiness of borrowers of the Bank of Russia, which Trokhov M.E. recommends using it to assess credit risks in order to form a reserve for possible loan losses. .

The most important source of information about the financial condition of the borrower is financial statements organizations. The credit institution calculates the following indicators:

current ratio. Limit value of the indicator: ? 2;

equity ratio. The limit value of this indicator: ? 0.1;

the value of the borrower's net assets, which should not be less than authorized capital enterprises.

Significant disadvantages of the proposed methodology are the lack of clear criteria for classifying factors of enterprise activity, the absence of a system of indicator weights and criterion boundaries for the values of financial ratios.

Traditionally, domestic banks mainly use the ratio method. They can be divided into five groups: liquidity ratios; capital turnover ratios; odds financial stability; profitability (profitability) ratios; debt security ratios.

Based on the values of these indicators, a credit rating of the borrower is constructed, which is expressed in points and allows each borrower to be assigned to a certain class of creditworthiness, and, accordingly, to determine the mode of lending.

Class i - class of the i indicator;

n - number of indicators;

i - indicator.

Depending on the results of the analysis, the borrower belongs to one of the following classes:

First class - the feasibility of lending is beyond doubt;

Second class - lending requires a balanced approach;

Third class - lending is associated with increased risk.

The lending regime for borrowers is established depending on the creditworthiness class. When assessing creditworthiness, the quality and value of the proposed collateral are also analyzed. For this purpose, all available materials are used, both received from the client and available in the credit archive.

The main criterion of creditworthiness is the financial condition of the borrower, the analysis of which is carried out in the following areas: financial results(profit Loss); liquidity (solvency); market position (business activity, competitiveness, stable dynamics of market position); cash flows, forecast for the loan term.

After assessing the borrower's creditworthiness and making a decision to issue a loan, the next stage of the credit process begins - concluding a loan agreement. At the stage of concluding a loan agreement, the loan is structured and loan terms are developed. At the same time, the bank’s position is determined in relation to the main parameters of the loan: type, amount, term, collateral, cost for the borrower, repayment terms, etc. At this stage, banks take into account the results of the assessment of the clients’ creditworthiness and the quality of the collateral provided at the previous stage and the conclusion of a specialist. The main forms of fulfillment of loan obligations are: pledge of tangible and intangible assets, financial guarantees governments, enterprises and organizations, guarantees from individuals. Credit institutions comply current rules carrying out credit transactions in accordance with regulations, such as the Law of the Russian Federation dated January 29, 1992 No. 28721 “On Pledge”, the Federal Law of the Russian Federation dated July 21, 1997 No. 122FZ “On state registration of rights to real estate and transactions with it”, the Law of the Russian Federation dated January 8. 98 No. 102FZ “On mortgage (real estate pledge)”, etc.

For clients of the first class of creditworthiness, banks can open revolving lines of credit, provide credit in the form of an overdraft, issue unsecured loans, set interest rates below average, etc.

To clients of the second class of creditworthiness, loans are provided in the presence of appropriate forms of security obligations, at average interest rates, they are given one-time loans and credit lines are opened under a disbursement limit.

Banks provide loans to clients of the third class of creditworthiness on more stringent than usual conditions (double collateral, requirement to maintain a minimum balance or a certain balance on the current account cash flow funds)

The bank refuses credit to clients whose creditworthiness is below third class.

The decision to issue a loan and its parameters, depending on what was adopted in credit policy bank, the procedure for sanctioning loans is decided either by the head of the credit department, or the credit committee of a bank branch, or the board of the bank. The same authorities also decide on the nature of the security obligations on the loan.

The loan parameters agreed upon with the borrower are fixed in the loan agreement.

The relations of the loan agreement in the Russian Federation are established in accordance with the Civil Code of the Russian Federation dated November 30, 1994 N 51-FZ (hereinafter referred to as the Civil Code of the Russian Federation). First of all, these are the provisions on the loan agreement provided for in § 2 of Chapter 42 of the Civil Code of the Russian Federation, provisions on obligations and ensuring their fulfillment (Chapters 21-26 of the Civil Code of the Russian Federation), insurance and assignment (Chapters 48 and 49 of the Civil Code of the Russian Federation), etc. Under a loan agreement, a bank or other credit organization (lender) undertakes to provide funds (loan) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the received sum of money and pay interest on it.

A loan agreement is considered concluded if two conditions are met: first, compliance with its form and second, achievement of all its essential conditions. At the same time, significant are following conditions: about the subject of the agreement; receiving interest under a loan agreement; all those conditions regarding which, at the request of one of the parties, they insisted on notarization of the loan agreement, although this is not required by law. According to the concluded loan agreement, both the borrower and the lender have the right to refuse lending in whole or in part. The lender refuses, as a rule, if there are circumstances indicating that the loan will not be repaid on time. The borrower must notify the lender of his refusal and his reasons.

After concluding a loan agreement, the bank creates a client’s credit dossier, which should contain all the documentation for the loan transaction and indicate all the necessary information about the borrower, including information about his risks. After the borrower and the lender sign the loan agreement and in the appropriate form of the security obligation, the loan is issued to the borrower (within the established time frame and amount according to the agreement). It is accompanied by an order issued by the bank's credit department from the bank's accounting department. Based on this order, the bank's accounting department assigns a number to the loan account opened by the borrower (based on the type of loan, its term and the organizational and legal form of the borrower), an account number for recording the reserve for possible losses on the loan (based on its risk category), and the balance on accounts 913 (03-08) “Security for granted loans and placed funds” includes collateral for the loan (depending on its nature).

In accordance with the regulation of the Bank of Russia No. 54-P, the placement of funds by the bank in the lending process can be carried out both in the currency of the Russian Federation and in foreign currency. Loans can be provided to legal entities only in a non-cash manner by crediting them to a current or current account, including loans issued to pay wages. Provision of loans in foreign currency is carried out exclusively by authorized banks.

After the loan is issued, work with the borrower does not stop. There comes a stage called credit monitoring.

At this stage of the lending process, the bank monitors the execution of the loan agreement, with the goal of identifying signs of a standard loan turning into a problem loan at the earliest possible stage and taking measures to ensure its repayment.

The main goal of monitoring is to ensure repayment of the principal debt on time and payment of interest on the loan. Monitoring involves analysis and control of each individual loan, as well as analysis of the loan portfolio as a whole.

In the process of individual control, a bank employee must assess:

- loan quality - changes in the client’s financial situation and his ability to repay the loan;
- compliance with the terms of the loan agreement - whether the client fulfilled loan obligations in accordance with the original terms of the transaction;
- the state of the collateral (guarantees, sureties) - have the conditions affecting the value of the collateral or the ability of the guarantor (guarantor) to fulfill their obligations changed;
- profitability - whether the lending operation continues to generate sufficient profit.

As a result of control, so-called problem loans are identified, i.e. loans for which problems arise with the payment of interest and repayment of the principal debt. It is necessary to create additional reserves for them, as well as make decisions on changing the terms of lending and the amount of collateral in order to ultimately ensure that the borrower repays the loan along with the interest due for its use. The procedure for the mandatory formation and use of reserves for loan debt is established by the Central Bank of the Russian Federation in Regulation No. 254-P.

Course work

Topic: Organization and stages of the credit process in commercial bank

Chapter 3. Credit process at Home Credit Bank

Bibliography

Introduction

Lending activity is one of the most important features that form the very concept of a bank. In the current economic situation in Russia, bank lending is one of the main sources of profit for commercial banks. All this speaks to the exceptional importance of establishing clear and effective mechanisms for the credit process, both for the banks themselves and for the economy as a whole. Meanwhile, such mechanisms are not yet available in most domestic banks. The creation of these mechanisms for the credit process can be considered one of the most important tasks facing the entire Russian banking system. Thus, the topic of the course work is relevant and important, since it would not be an exaggeration to say that the level of organization of the credit process is perhaps the best indicator of the overall work of the bank and the quality of its management.

The purpose of the course work is to conduct theoretical and analytical studies of the organization of the credit process and its impact on the activities of a commercial bank. The course work involves solving the following most important tasks:

Study of the essence and main stages of organizing the credit process in a commercial bank;

Study of the organization of the credit process at Home Credit Bank;

Analysis and improvement of shortcomings in the organization of the credit process of Home Credit Bank.

The object of the study is the economic relations that arise between a commercial bank and other business entities regarding the provision of funds on loan. The subject of the study is the credit process and the Home Credit Bank, which organizes this process.

Chapter 1. Theoretical basis bank lending activities

1.1 Characteristics and essence of the loan

In scientific and educational literature, the nature of credit is sometimes interpreted ambiguously. Therefore, it is necessary to first clarify the main points associated with this concept.

Credit translated from Latin - the word kreditum means house, loan, trust.

The loan serves the movement of capital. Thanks to him, funds are temporarily released during the operation of enterprises, execution state budget, as well as citizens’ savings are directed to areas of activity with a lack of resources. That is, credit ensures the transformation of money capital into loan capital.

Loan capital is money capital lent on the terms of repayment and payment for use.

With the help of a loan, temporarily free funds of enterprises, the population and the state are accumulated in the banking system and are involved in money turnover, turning into loan capital, which, in turn, is transferred for a fee for temporary use to entities experiencing a temporary shortage. Capital physically, in the form of means of production, cannot flow from one industry to another. This process is carried out in the form of movement of money capital.

With a loan, money acts as a means of payment. Consequently, credit is a special form of money movement.

Credit finds expression relations of production between business entities regarding the transfer of value for temporary use on the basis of repayment. The word "kreditum" is translated from Latin. also as “I believe”, “I trust”.

Credit is a form of economic relations associated with the repayment of resources and the repayment of obligations arising in connection with this. In the broadest sense of the word, a loan is a transaction, an agreement between legal entities and/or individuals for a loan or loan.

Thus, the credit relationship consists of three elements - the lender, the borrower and the loaned value.

Lender is the party to the credit relationship that provides the loan.

Borrower is a party to a credit relationship who receives a loan and is obligated to repay the loan received.

The lender and the borrower are on opposite sides of the loan transaction, but at the same time have the same goal - making a profit.

Lent value is the unrealized part of the value, which, when entering into a credit relationship, has a special additional use value.

The structure of a loan presupposes the unity of its elements - this is always a movement of the loaned value.

Thus, the essence of a loan can be defined as the transfer by the lender of the loaned value to the borrower for use on the basis of repayment and in the interests of social needs.

1.2 Credit as a product of a bank’s activities

When studying the features and subtleties of organizing the credit process in a commercial bank, the fundamental point is the definition of a loan as a banking product (the result of the activities of bank employees).

There is a widely held opinion, the essence of which is that banks, when engaged in lending, trade in monetary resources. This opinion is not correct enough and should be clarified in relation to what exactly banks trade in the lending market.

Bank like commercial organization can and should sell the result, the product of its own activities. But what acts as such a product in the lending industry? One could assume that the bank is offering money for sale, partly its own, but mostly borrowed (considering the attraction itself as a result of the difficult activities of bank employees).

In fact, this is a superficial idea, since the bank both attracts and lends money only for a time, which deprives the entire process of standard trading content.

Hence the first clarification: we should not be talking about the sale of money, but the right to temporarily use it. Such a right traded by the bank can be considered the result of the bank's activities prior to the issuance of the loan.

However, the question remains unanswered about whether there is a product of the bank’s lending activity itself and, if so, what it is. To understand this issue, it is necessary to remember what is generally meant by the result or product of a bank’s activities.

A banking product is some more or less original banking technology, invented and used in a given bank, i.e. a certain skill of its employees that other banks may or may not possess.

That is, banking products are always different and unique in some way, since they are created by different people and are designed, as a rule, for the unique needs, capabilities and requests of a wide variety of clients.

All of the above about the productive and creative nature of banking activity most of all, perhaps, applies specifically to credit activity.

In almost every case of lending, banks create more or less different lending technologies that suit specific borrowers. These technologies are the main product that banks sell as participants in the credit market.

Thus, a loan must be understood both as a certain amount of money allocated by the bank for a known purpose, and as a certain technology for satisfying the borrower’s demand. financial need, but it is also necessary to distinguish between the specified technology and the results of its application.

The price for using bank loans is the loan interest, determined on a mutually beneficial basis between the subjects of credit relations and fixed in the loan agreement.

Then it can be argued that a loan as a product of a bank’s activities is:

Firstly, the amount of money provided by the bank to the borrower and satisfying the basic characteristics of a loan outlined above, reflecting its specific economic and legal nature;

Secondly, a credit product of a deeper level, namely the specific way in which the bank provides or is ready to provide a credit service to a client in need, i.e. an orderly, internally consistent and documented set of interrelated actions that make up a holistic regulation of interaction between bank divisions (related to the credit process), a unified and complete technology for customer credit servicing.

All this speaks to the exceptional importance of establishing clear and effective mechanisms for the credit process. However, before you begin to study the features of organizing the credit process, you need to familiarize yourself with the main types bank loans.

1.3 Classification and types of loans

Bank loans are divided into a number of types according to various criteria or signs. Their classification can be based on different features that reflect certain aspects of lending.

According to the terms of use, loans are on demand and urgent (among which, in turn, short-term, medium-term and long-term are distinguished).

Depending on the subject of lending, loans are distinguished to state and non-state enterprises, citizens engaged in self-employment, other banks, other economic entities, including authorities, joint ventures, international associations and organizations.

By purpose, loans are distinguished as consumer, industrial, trade, agricultural, investment, and budget. According to the scope of application, loans are divided into loans in the sphere of production and in the sphere of circulation.

Consumer loans are loans provided to the public. In Russia, consumer loans include any types of loans provided to the population, including loans for the purchase of durable goods, mortgage loans, loans for emergency needs, etc.

Loans are divided into large, medium and small by size.

Depending on the fee, bank loans are divided into loans with market, increased and preferential interest rates. There are private and aggregate lending objects.

Bank loans are divided depending on the currency used for lending (loans in rubles, US dollars, euros, etc.).

An important criterion for classifying loans is their security.

Security in a broad sense is the presence of guarantees that provide confidence that the loan will be repaid to the lender in a timely manner and the specified payment will be received from the borrower for its use.

By type and availability of collateral, some other types of loans should be distinguished.

Lombard loan - secured by securities. The borrower can provide various types of securities as collateral: stocks, bonds, short-term treasury bills, bills, certificates of deposit. Both registered securities and bearer securities are accepted as collateral. If the borrower fails to repay the loan debt, the securities pledged as collateral for the loan in the prescribed manner (and within a specific period) become the property of the bank

Bill credit - loans secured by bills of exchange.

Bank loans can be divided into two groups according to the order of repayment.

The first group should include loans repaid in a lump sum, and the second group should include loans with installment payments.

As a rule, when providing short-term lending to legal entities and individuals in need of cash to cover current needs, the practice is to provide loans that are repaid in a lump sum. We are talking about repaying the principal and interest in a lump sum at the end of the loan term.

Installment loans are loans that are repaid in two or more installments (usually monthly, quarterly or semi-annually). This group includes loans of a wide variety of types, including: branded (commercial), open account, bills, leasing, factoring, forfaiting, mortgage, etc.

Depending on the type of interest rates, bank loans can be divided into two groups: loans with a fixed and floating interest rate. A fixed interest rate is set for the entire loan period and is not subject to revision. In this case, the borrower undertakes to pay interest at a constant agreed rate, for using a loan, regardless of changes in conditions in the interest rate markets. This is beneficial to both the lender and the borrower, since both parties are able to accurately calculate their income and expenses associated with the use of the loan provided. Fixed lending rates are usually used for short-term lending. By size, bank loans are divided into small, medium and large. In banking practice, there is no unified approach to classifying loans according to this criterion.

In Russia, a large loan is considered to be a loan to one borrower that exceeds 5% of the bank’s capital. Bank loans are divided into active and passive. In the first case, the bank gives a loan, i.e. acts as a creditor, in the second he takes a loan, i.e. is a borrower. . A bank can enter into credit relationships (take or give loans) with other banks (credit organizations), including a neutral bank, performing an active or passive function, depending on the situation. In this case, interbank lending takes place. As for all other enterprises, organizations, institutions and individuals, the bank’s credit relations with them are of a different nature - here the bank is almost always the party giving the loan. In conclusion, it should be noted that in banking practice There is no unified classification of bank loans. Ego is linked to developmental differences banking systems, their established methods of providing loans.

Chapter 2. Basics of organizing the credit process in a commercial bank

2.1 The concept and essence of the credit process in a commercial bank

Studying and considering such a concept as the credit process allows us to comprehensively analyze all the components and stages of the bank lending mechanism. The credit process is the process of organizing the bank’s credit activities.

The Bank, being a commercial enterprise, places attracted resources on its own behalf and at its own risk in order to generate income.

The bank's active operations are heterogeneous both in economic content and in terms of their profitability and quality. Part active operations bank is a non-alternative placement of its funds (into the mandatory reserve fund, into a correspondent account at the RCC, etc.), which allows the bank to operate stably, but does not generate income.

Other types of placement may be highly profitable, but very risky. Therefore, every commercial bank is interested in increasing the level of organization of the lending process. A carefully designed credit process allows you to minimize credit risk by significantly reducing the likelihood of providing a loan to an unreliable borrower.

What exactly should be classified as bank lending operations? On this score, complete unanimity of opinion has not yet been achieved.

Providing the borrower with a certain amount of money for the intended (usually) use, their timely return,

Receiving payment from the borrower for the use of funds placed at his disposal.

A bank loan can be provided to a borrower (legal entity or individual) for a variety of purposes, the most common of which are:

Increasing (replenishing) the working capital of a business organization, which may mean, for example:

Financing the seasonal needs of the organization;

Financing a temporarily increased amount of inventory items"

Tax financing;

Assistance in covering extraordinary (large) costs, etc.

Financing of production costs, including sales investment projects(for example, an expansion, reconstruction or modernization project of an enterprise), i.e. in general - an increase in capital. In this case, we talk about medium- or long-term production (investment) lending;

Consumer goals of an individual (purchase or renovation of housing, education, etc.), satisfied with the help of a consumer (personal) loan.

Credit operations of commercial banks are one of the most important types of banking activities. On financial market lending retains its position as the most profitable item of assets of credit institutions, although also the most risky.

Credit operation - yourself practical actions(an orderly, internally consistent set of actions aimed at satisfying the client’s need for a loan) of bank loan officers in the process of lending services to borrowers, a form of implementation of a loan product.

The result of the credit process cannot be reduced only to satisfying the corresponding needs of the client, since in the relationship between the bank and the client it is always assumed that the interests of both parties to the operation (transaction) are realized.

Exploring the essence of the credit process, it should be noted that the integrity and reliability of the credit process depend on objective credit decisions that provide an acceptable level of risk in relation to the expected income.

A review of the lending process should include a review of the lending manuals and other written procedures used by the bank's various departments, as well as an analysis of the capabilities and actual performance of all bank departments involved in the credit process. It should also cover the procedures for origination, evaluation, approval, disbursement, tracking, collection and processing of various credit instruments provided by the bank.

In particular, the review should include the following:

Detailed credit analysis methodology and loan approval process with examples of loan application forms, internal loan summary forms, internal loan manuals and loan files;

Criteria for approving loans, determining the policy of interest rates and credit limits at all levels of bank management, as well as criteria for accepting orders for issuing loans through a network of branches;

Collateral policy for all types of loans, current methods and practices regarding revaluation of collateral, as well as documentation of collateral;

Administer and monitor procedures, including responsible persons, compliance criteria and controls;

Exception handling technique.

This personnel analysis concerns employees involved in the procedures for creating, assessing, approving and monitoring credit risks. Their number, positions held, age, experience and specific responsibilities must be determined. Personnel structure, skills and professionalism should be analyzed in light of management directives and procedures in which employees participate. All training provided to bank loan officers should be reviewed and their effectiveness assessed. The quality and frequency of staff training is usually a good indicator of their level of proficiency in loan origination.

Since the credit function is usually dispersed throughout the organization, the bank must have effective systems for monitoring compliance with established guidelines. This condition can best be met by internal review and the establishment of a reporting system that can inform the board and senior managers of how directives are being implemented and provide them with sufficient information to evaluate the performance of lower-level employees and the health of the loan portfolio. Since information is a fundamental element of the credit management process, its availability, quality and cost-effectiveness must be analyzed.

In addition, attention should be paid to the flow of information between different parts of the bank, and in particular to whether the information actually flowing is complete, timely and effective. This analysis is closely related to the analysis of personnel, control structure, organizational structure and information technology.

Thus, the content of the bank’s credit process consists of activities inherent in the process of direct implementation of credit operations, as well as activities aimed at ensuring the organization of the implementation of these operations in the most effective way.

2.2 Main stages of the loan process

The basis for the emergence and development of credit relations between commercial banks and their clients in connection with the movement of credit is the credit process, which determines the circulation of loan capital of a commercial bank in general and the life cycle of each individual bank loan in particular.

The credit process is a unity of interconnected stages: planning, provision, use and repayment of the loan. The lending process can be divided into several stages. Each of them contributes to the quality characteristics of the loan and determines the degree of its reliability and profitability.

Lending can be conditionally divided into several stages, at each of which the characteristics of the loan, methods of its issuance and repayment are specified:

Review of the loan application and interview with the client;

Assessment of the applicant's creditworthiness;

Study of loan collateral;

Conclusion of a loan agreement;

Providing credit;

Loan servicing (support);

Loan repayment.

It should be noted that at each stage, not only a commercial bank, but also the state represented by the Central Bank, as well as tax and judicial authorities of government, take part in managing the credit process. Thus, the Central Bank formulates mandatory rules for all commercial banks and key parameters their credit activities, intervening in special cases in credit processes (by establishing, for example, “credit ceilings”).

The organizational beginning of the formation of relations between the bank and the borrower is the borrower’s application to a commercial bank for a loan.

It states:

Purpose of obtaining a loan;

Amount and period of use;

Brief description of the event being credited;

Calculation of the economic effect of its implementation.

The so-called preliminary information about the potential borrower, which is partially reflected in the loan application, but is mainly supplemented and argued by the client during the interview (interview), is intended to find out primary data about the client and his motives for applying to the bank for credit support.

The main thing for both parties (lender and borrower) at the initial stage is the question of whether it is advisable or not to satisfy the application of a potential borrower.

When a loan application is processed by a loan manager, its compliance or non-compliance with the primary criteria is determined, i.e. general lending rules and internal bank regulations on credit policy issues.

If the loan application does not meet the bank’s primary criteria, the loan manager prepares a conclusion about the impossibility of providing a loan, coordinates it with the head of the credit department and sends the applicant a written notification of the loan refusal. If the provision of a loan is considered appropriate for the bank, they proceed to the second stage of the loan process.

The lending process is associated with various risk factors that can lead to the borrower’s failure to repay the loan within the period stipulated by the contract. Therefore, before drawing up lending conditions and concluding a loan agreement, the bank carries out an analysis of the borrower’s creditworthiness.

This stage begins with studying constituent documents potential borrower. Its legal status is determined, and its business reputation and credit history are assessed together with the security service.

At this stage of lending, the bank has to find out:

The seriousness, reliability and creditworthiness of the borrower, his reputation as a possible business partner. This is especially true for new clients.

The validity of the loan application and the degree of security of loan repayment. The bank can, if necessary, develop its requirements for the loan offer and familiarize the borrower with them.

Compliance of the loan offer with the bank’s credit policy and the structure of the formation of its loan portfolio (i.e., will the provision of a new loan lead to further diversification of the loan portfolio and a reduction in credit risk or to the opposite results).

If necessary, employees of other bank services are involved in the work. If, as a result of the negotiations, the credit inspector considers it appropriate to continue working with the application, he transfers the corresponding part of the set of documents received, along with an accompanying note, to the legal department, the credit operations department, and the economic protection service, in order to conduct a comprehensive analysis of the application.

For the creditor bank, the financial solvency of the borrower is important insofar as it expects to receive back the amount issued as a loan and interest on it on time. This solvency of the borrower is expressed in his solvency and creditworthiness.

Solvency is the ability (possibility) and readiness (desire) of a legal entity or individual to repay its monetary obligations in a timely manner and in full.

In contrast, creditworthiness is the ability and willingness of a person to repay his credit debts (principal and interest) in a timely manner and in full. Creditworthiness is a narrower concept than solvency. To decide to issue a loan to a given borrower, the bank only needs to make sure of its creditworthiness, without necessarily considering the issue on a broader scale.

Along with the application, the borrower provides the bank with copies of the following accompanying documents presented in Figure 2.1.

Copies of the constituent documents of the company - the potential borrower must be notarized.

The financial report includes the company's balance sheet and profit and loss account for the last three years.

The cash flow statement is based on a comparison of the company's balance sheets for two reporting periods and allows you to determine changes in various items and fund movements.

Rice. 2.1. Package of accompanying documents

The report gives a complete picture of how the resource deficit was used, how long it took to release funds and create a cash flow deficit, etc.

Domestic financial reports characterize in more detail the financial position of the company, the transformation of its resource needs throughout the year, quarterly or monthly.

Internal operational accounting data represents summaries regarding current operations and sales, inventory levels, etc.

The financing forecast should contain estimates of future sales, expenses, production costs, accounts receivable, inventory turnover, cash needs, capital investments, etc. Tax returns are also required, which contain information characterizing the borrower as a taxpayer, business plans with information about the goals of the project and methods for its implementation. The credit inspector examines the loan application and accompanying documentation. After this, he talks again with the future borrower. Such meetings allow the credit inspector to find out not only the important details of the upcoming transaction, but also to draw up a psychological portrait of a possible borrower, the realistic assessment of the situation and development prospects of the enterprise, which are expressed by its top managers. If the loan application does not meet the bank’s primary criteria, the loan manager prepares an opinion on impossibility of providing a loan, coordinates it with the head of the credit department and sends the applicant a written notification of the loan refusal. If the provision of a loan is considered appropriate for the bank, the third stage of the loan process proceeds. A bank loan can be secured by collateral, bank guarantee, surety, credit risk insurance, assignment of claims (assignment). Methods for securing a bank loan are shown in Fig. 2.2.

Rice. 2.2. Methods of securing a bank loan

The concept of collateral is a very broad concept. Pledge differs in the method of ownership, place of storage and the types of items and rights that can be pledged.

The types of collateral accepted by the credit department are shown in Figure 2.3.

Figure 2.3. Types and forms of collateral

The government can also act as a guarantor for a loan transaction if we are talking about lending to a project of national importance, an enterprise and an organization (for example, insurance companies, banking institutions and etc.).

The loan manager checks the presence of a guarantor on the list of guarantor organizations approved by the credit committee. If there is no guarantor on the list, the loan manager prepares an opinion on credit rating guarantor organization and contacts the credit committee with a question about the acceptability of such a guarantee.

If the decision of the credit committee is positive, the guarantee is registered with the bank. If the guarantee amount is insufficient or not acceptable at all, the loan officer informs the potential borrower about this and requires additional security.

Guarantees from individuals as a form of fulfillment of loan obligations are most often used when lending to the population. In lending practice, various forms of fulfillment of loan obligations can be simultaneously used (for example, the pledge of property can be strengthened by the guarantees of private individuals or the guarantee can be accompanied by the provision of collateral).

The collateral assessment is carried out by an expert of the relevant credit division of the bank, most often the collateral assessment service. After the expert’s conclusion on the acceptability of collateral or other forms of fulfillment of loan obligations, the loan manager proceeds to the stage of structuring the loan and preparing the loan agreement.

A loan agreement is a written agreement between a commercial bank and a borrower, according to which the bank undertakes to provide the borrower with a loan in the agreed amount on terms of urgency, repayment and payment, and the borrower undertakes to use the loan received for its intended purpose and repay it within the prescribed period with payment of the agreed interest.

Typically, a loan agreement contains the following main sections:

Preamble, which contains the names of the contracting parties.

Purpose, volume, terms of use of the loan and date of its repayment.

Loan interest for using a loan.

Report and guarantees.

The procedure for providing loan security during the loan period.

Binding, prohibiting, limiting terms of the loan agreement.

Conditions for non-fulfillment of the loan agreement.

Drafts of the loan agreement, collateral agreement and other accompanying documents are submitted for approval to the legal department to the lawyer of the credit department. The lawyer’s work is carried out to confirm the compliance of the submitted documents with current legislation, the legal capacity of the borrower, and the competence of the credit department employees who signed the documents on the loan transaction.

A legal service specialist endorses the documents or returns them to the loan manager for revision. Then the loan manager signs the loan agreement with the head of the credit department, or submits the prepared documents for consideration by the credit committee. The latter makes the final decision, authorizing the issuance of a loan, sending documents for revision or refusing to provide a loan. If a positive decision is made, the loan manager proceeds to the next stage of the loan process.

The bank issues loans in the following ways:

1) one-time crediting of funds to bank accounts or issuing cash to the borrower - an individual;

2) opening a credit line;

3)crediting the client’s account and paying settlement documents from this client’s account (if the bank account agreement provides for such an operation).

4) the bank’s participation in providing funds to the client on a syndicated (consortial) basis;

5) in other ways that do not contradict the legislation and regulations of the Bank of Russia.

The loan is issued on the basis of an order duly drawn up by specialists of the bank’s credit department and signed by an authorized officer of the bank. The creditor bank is obliged to create reserves for possible losses from lending activities in the manner established by the Bank Russia.

The provision of a loan is accompanied by the opening of a loan account, the correct establishment of the type of which largely determines the success of the credit transaction. In this case, the following types of loan accounts are usually used: separate (simple), special, current account.

When providing loans to current (current) assets, as a rule, separate loan accounts are used. In the bank at the place where the loan is received, the borrower opens one or more loan accounts, depending on the number of lending objects.

In this case, the borrower can be serviced by one bank and receive a loan from another. In this case, the bank issuing the loan notifies the bank in which the borrower's current account is opened about the amount and repayment terms of the loan.

It is also possible to open a special loan account, which does not give the borrower the opportunity to be serviced by different banks. A special loan account can only be opened at the bank at the location of the borrower's current account. Lending under a special loan account is usually permitted to enterprises engaged in retail and wholesale trade in consumer goods and industrial and technical products.

A loan on a current account is provided to service current production activities, make all types of commodity and non-commodity payments using various forms of payment. A current account is a single active-passive account that reflects all cash flows: receipts and payments. It is open to clients who have been served by the bank for a long time and are distinguished by high creditworthiness and importance for this institution. The debit balance on a current account characterizes the debt to the bank or loan debt, and the credit balance characterizes the receipt of funds, resources or the bank's debt to the client.

After determining the type of loan account, the credit manager prepares and sends to the operations department an order to open a loan account and issue a loan. The lending process moves to a new stage of servicing an already granted loan.

Often, the financial capabilities of the borrower and the risk level of the loan transaction change during the period from the provision of the loan to its final repayment. Therefore, the loan servicing procedure is aimed, first of all, at the implementation of control functions by the loan manager. The following areas of control are distinguished:

Behind intended use loan;

Adequacy of loan collateral;

Timely repayment of principal and interest;

Borrower's payment documents.

The loan manager also monitors the financial condition of the borrower and trends in its changes, periodically analyzes the client’s creditworthiness,, together with the borrower, discusses, if necessary, issues of changes and additions to the loan agreement regarding changes in interest rates, loan prolongation, etc., conducts the borrower's credit file, supplements it with new documentation, ensures reliable storage and trade secrets. All these measures are aimed at the successful completion of the transaction - repayment of the loan.

Go to the last stage and successful completion credit process are possible only with the correct organization of all previous stages. Most loans are repaid on time and in full in accordance with the terms of the loan agreement.

The loan is returned (repaid) and interest is paid in the following ways:

1) debiting funds from the borrower’s account according to his payment order;

2) writing off funds from the borrower’s account serviced by another bank, based on the payment request of the creditor bank. In this case, funds can be debited without notifying the account owner, if such a possibility is provided for in the agreement and the borrower has notified the bank in writing of his consent to such a debit;

3) writing off funds from the account of the borrower - a legal entity served by the creditor bank itself, on the basis of a payment request.

4) transferring funds from the accounts of borrowers - individuals on the basis of their written orders, transferring money through communications companies or other credit organizations; depositing cash into the cash desk of the creditor bank.

On the day established in the agreement (the day of payment of interest or repayment of the principal debt), the accounting employee responsible for maintaining the borrower’s account records with accounting entries the fact of payment of interest or repayment of the principal debt, or (if the client fails to fulfill or improperly fulfills his obligations) transfers the client’s debt to accounts for recording overdue debts.

Loan debt that is bad or deemed unrealistic to be collected is, in the prescribed manner, written off from the bank’s balance sheet using funds from a reserve specially formed for such cases, and if there is a shortage of such funds, it is charged as losses for the reporting year. On average, about 15% of bank loans become problematic from the point of view of their repayment.

Chapter 3. Credit process at Home Credit Bank

3.1 Characteristics of the activities of Home Credit Bank

OOO "Home Credit", one of the leaders in the segment consumer lending, has been operating on the Russian market since 1992. The bank is part Home Credit Group, which since 1997 has been operating in the Eastern European area to provide consumer loans and, in turn, belongs to the international group of companies PPF, one of the largest in the region.

The group provides a wide range of services in the field of lending, insurance and asset management in Central and Eastern Europe. The last 15 years of active activity in the market have transformed PPF into a large-scale financial investor, with a portfolio of assets worth a total of US$10 billion, which the group effectively and successfully manages.

The core of Home Credit LLC's activities is the provision of consumer lending services. The bank provides loans for the purchase of a wide range of durable goods: from household appliances and electronics, to building materials and furniture.

Among the partners of Home Credit LLC are federal retail chains"MIR", "Technosila", "Eldorado", "Shatura-mebel", "POLARIS, "Euroset", "Sibvez Corporation", the network of travel agencies "Kuda.ru", the network of travel agencies "Last Minute Store", "Bi" -Travel", "Master of Recreation", a network of music centers "MuzTorg", "Expert-Retail", regional retail chains "Key", "Techno", "Domostroy", "Telemax", "Technoshok", "Five Stars", as well as international partner "Zepter" and many other companies.

Constantly expanding its partner network, the bank places its main emphasis on developing long-term and mutually beneficial business relationships with reliable and experienced companies.

The bank offers its clients optimal conditions for cooperation; loan products are developed taking into account market conditions and changes occurring in the banking services segment.

In the field of consumer lending, large retail chains at the federal and regional level and individual trade organizations both in the capital and in the regions of Russia are currently cooperating with the bank. The bank offers profitable partnership programs, as a result of which the distribution network of the bank's partner stores is constantly growing. As of the end of 2008, more than 26,000 stores had already become partners of the bank, and cooperation covered 1,100 cities in Russia.

Successful activities in the consumer lending market and the serious financial experience of the founders allowed Home Credit LLC to quickly become one of the leaders in the consumer lending market for individuals.

According to data for 2008, the bank offers the population 25 types of loans on various conditions. At the end of 2008, the Bank is among the leaders in the consumer lending market and ranks 2nd in credit cards in Russia.

The organization of management functions for the activities of Home Credit Bank is carried out by divisions of the management apparatus and individual employees. Organizational structure Home Credit Bank is shown in Figure 3.1. and looks like this:

The bank's divisions and divisions are formed taking into account the classification and banking operations by functional purpose.

Thus, the management of credit operations is concentrated in a number of divisions of the bank, which have their own level of competence, their own functions and tasks.

Figure 3.1. Organizational structure of Home Credit Bank

3.2 Types of lending provided by Home Credit Bank

Home Credit LLC offers several types of loans.

One of the types of lending from Home Credit Bank is a consumer loan, i.e. loan for the purchase of goods. The Bank regularly studies consumer preferences of clients and improves the product range offered.

Thus, according to data for 2008, the bank offers:

Wide selection of credit products and marketing promotions;

Flexible loan terms - from 4 to 36 months (in 1 month increments);

Loan amount – from 3,000 to 200,000 rubles;

A wide range of credited goods and services: from household appliances and electronics to interior items, clothing and travel packages.

Consumer lending from Home Credit Bank includes a large list of different programs:

Consumer loan 3,000 – 200,000 rubles;

Express 10,000 – 40,000 rub.;

Professional - for doctors, teachers and lawyers 10,000 – 60,000 rubles;

Family Comfort 30,000 – 100,000 rub.;

Comfort 41,000 – 100,000 rub.

Another type of lending from Home Credit Bank is the Home Credit card. The bank offers its clients the following credit cards: Card "More" up to 100,000 rubles. Home Credit card up to RUB 40,000.

Another type of lending is a mortgage loan. Mortgage- a loan secured by real estate, as opposed to a regular consumer loan. A mortgage loan can be provided against the security of the property being purchased or already owned by the borrower or third parties. real estate. The Bank's clients are provided with 4 main products mortgage lending: “Housing from scratch”, “Cash on bail”, “Improvement living conditions", "Refinancing".

3.3 Organization of the credit process at Home Credit Bank

The loan process of Home Credit Bank occurs as follows.

At the first stage, the bank considers the possibility of providing a loan. An agreement between the borrower and the lender is concluded only if the bank has no doubts about the accuracy of the information specified in the loan agreement.

The loan officer at Home Credit Bank carefully examines the loan application and accompanying documents. After this, he talks again with the future borrower. Such meetings allow the loan officer to find out not only the important details of the upcoming transaction, but also to create a psychological portrait of a possible borrower.

Acceptance of an application for consideration by the bank does not mean that it has an obligation to provide a loan. The bank has the right to refuse to provide a loan to the applicant without informing the reasons for the refusal.

In accordance with the law, the bank has the right to refuse to provide a loan to the borrower in whole or in part if any of the following circumstances exist:

The existence of facts indicating that the loan provided will not be repaid on time;

If the borrower has overdue debt on obligations to a bank or other credit institution;

And also, if the borrower’s credit history reveals facts of non-fulfillment of obligations under agreements with the bank or third parties;

If the bank identifies the unreliability of the information provided by the borrower when concluding the loan agreement;

In other cases, when the bank has reason to believe that the borrower may not fulfill its obligations under the agreement.

If, as a result of negotiations, the loan officer considers it appropriate to continue working with the application, he transfers the corresponding part of the set of received documents to the commercial loans department.

The Commercial Loans and Guarantees Department of the Lending and Guarantees Department works to reach an agreement with a potential borrower on all essential terms of the loan agreement.

In the future, the borrower is obliged to inform the bank about all changes in his passport data, postal address, place of work, telephone numbers, as well as other data specified in the loan agreement, and circumstances that may affect his fulfillment of the terms of the loan agreement. The borrower is obliged to preserve and, upon request, present to bank employees (for making copies) original documents confirming the transfer of funds or their deposit into the account within 12 months after repayment of all debt under the loan agreement.

The parties determine the procedure for providing a loan to the borrower, which is of practical importance for determining the date from which interest begins to accrue and the terms of using the loan are counted.

The department for monitoring the execution of loan agreements and reporting opens a loan account.

The bank undertakes to provide the borrower with a loan in the amount specified in the loan agreement, and the borrower undertakes to repay the debt to the bank in the manner and within the terms established by the agreement.

The bank accepts funds received from the borrower, credits them to the account and undertakes to carry out operations on the account as provided for in the loan agreement and legislation. The fee for services for conducting account transactions is charged by the bank in accordance with the price list valid at the time of provision of the relevant service.

Bank payment details are specified in the loan agreement. Information about organizations accepting payments for transfer to the bank is publicly available

Simultaneously with the issuance of the loan, this department creates a reserve for possible loan losses. Then he receives from the loan officer copies of the package of documents and a collateral agreement that ensures the fulfillment of the borrower’s obligations.

The borrower's fulfillment of his obligations under the loan agreement is ensured by the penalty (fines, penalties) provided for in the bank's price list. The bank may recover from the borrower in full the following amounts in addition to the penalty:

Losses, including in the amount of interest on the loan that would have been received by the bank if the terms of the agreement were properly fulfilled;

Expenses incurred by the bank when carrying out actions to collect debt from the borrower.

The bank may require the borrower to immediately and early repay all debt on the loan in the following cases:

If there is a discrepancy between the information specified by the borrower in the loan agreement and the real situation of the borrower;

If there is overdue debt under the loan agreement;

When the bank receives information indicating that the loan provided to the borrower will not be repaid on time;

Other violations.

Requirements presented by the bank must be fulfilled by the borrower within 21 calendar days from the moment the bank sends the request in writing or notification by telephone.

The bank may, based on the borrower’s application, provide an installment plan for fulfilling the requirement. The borrower is sent a proposal from the bank to provide an installment plan (offer), which specifies the installment payment schedule. The condition for the provision of installment plans is the advance payment by the borrower of the amount specified in the offer. The installment payment schedule comes into force from the date the payment is received by the bank.

Termination of a loan agreement at the initiative of the borrower without the consent of the bank is not permitted. To obtain the Bank's consent, the borrower submits an application for termination of the agreement through persons authorized by the Bank. The bank informs the Borrower in writing about the decision made.

Upon receipt of the bank's consent to terminate the loan agreement, all debt under the loan agreement is subject to full early repayment by the borrower. The agreement is considered terminated from the date of repayment of all debt.

If the borrower fails to repay the loan, the loan officer collects the debt in accordance with the instructions for working with problem loans, approved by the bank.

In accordance with the loan agreement, the borrower assumes the risks associated with a possible delay in the receipt of these funds into the account through no fault of the bank. In this case, all disputes and disagreements with other banks or post offices related to a possible delay in the receipt of funds are resolved by the borrower himself without the participation of the bank.

The borrower grants the bank the right to draw up payment (settlement) documents on his behalf and write off funds from the account to pay off any obligations to the bank.

The borrower is obliged to ensure the availability of funds in the account in an amount not less than the amount of the monthly payment no later than the last day of the payment period.

Repayment of debt on a loan is carried out by the bank debiting funds from the account based on the borrower’s instructions on the last day of the payment period, while the interest for the corresponding interest period is paid by the borrower in full.

If there are no funds in the account within the specified period, the borrower pays a fine.

3the funds are credited to the account by the bank no later than the next business day after the bank receives the corresponding payment document.

In case of early repayment of debt under a loan agreement, the borrower is obliged to pay the bank a loan fee in full.

In case of early repayment of debt under a loan agreement at the initiative of the borrower, he is obliged to pay the bank the amount of accrued fees for servicing the loan debt, including fees for the current interest period, in which early repayment of the loan is carried out.

In case of early repayment of debt under a loan agreement at the request of the bank, the borrower is obliged to pay the bank fees for servicing the loan debt accrued for the interest period in which the claim is made, inclusive.

In case of early repayment of debt under a loan agreement at the initiative of the borrower, he is obliged to pay the bank part of the accrued fee for consultations and loan processing, up to and including the current interest period in which the early repayment of the loan is carried out.

In case of early repayment of debt under a loan agreement at the request of the bank, the borrower is obliged to pay the bank a fee for consultations and loan processing in full.

Early repayment of debt under a loan agreement at the initiative of the borrower without the consent of the bank is not permitted.

The borrower can find out the exact amount of debt under the loan agreement: when contacting the bank by phone; by receiving written notice sent by mail to the address of actual residence.

Full early repayment of the debt at the initiative of the bank immediately terminates all obligations of the borrower to the bank.

All disputes and disagreements between the parties are resolved through negotiations. If agreement is not reached, the dispute is subject to consideration in court at the location of the bank.

3.4 Disadvantages in the organization of the loan process of Home Credit Bank

Today, the organization of the lending process at Home Credit Bank has the following disadvantages:

At Home Credit Bank, the share of overdue loans at the end of 2008 was about 24.5%.

The bank has introduced prohibitive measures on cash withdrawals from accounts. And although such measures are justified by the desire to reduce the cashing out of credit funds, the consumer sees this as a big problem. Moreover, the queue at the ATM or cashier's window is common for both credit and deposit clients.

Clients subject to such restrictions spread negative information about the bank, which in turn stimulates the outflow of funds.

It can be assumed that Home Credit Bank took into account only the economic component of the steps to retain funds on deposits.

The bank's management admits that its clients have sharply, more than doubled, the volume of cash withdrawals at branches and through ATMs. Bank clients who previously withdrew no more than 40% of credit limit, began to withdraw funds in full, and the number of clients who activated cards issued several months ago for the first time and withdrew all funds also increased.

In these conditions, unilateral steps that worsen the situation of clients - a risky strategy, can destroy the remaining appearance of balance.

According to Rospotrebnadzor, officials receive a large number of complaints against banks. The leader in negative assessments was Home Credit. The greatest concern among officials is the bank's manner of introducing a so-called "contractual jurisdiction" clause into contracts with consumers.

That is, the bank includes in the loan agreement conditions that deprive the consumer of the legal right to defend himself in court on a territorial basis, for example, at his place of residence. It should be noted that Home Credit Bank is not the only bank that includes such conditions in the loan agreement.

Rospotrebnadzor notes that the main violations in the field of consumer lending are failure to provide the necessary information or provision of false information about services and about the service providers themselves, misleading consumers about the legal essence of concluded contracts, non-compliance written form agreement, including in it conditions that infringe on the rights of consumers. Banks also often impose additional services on clients, the letter says.

Also, it should be noted such shortcomings in the organization of the credit process of Home Credit Bank as:

The formal nature of the analysis of the creditworthiness of individual borrowers;

Difficulties in ensuring repayment;

There are frequent cases of untimely repayment of debts to the bank by the population;

Lack of economically sound interest rate policy;

Relatively narrow (compared to Western practice) range of types of consumer loans.

One of the disadvantages of the Home Credit Bank lending process is the wide and widespread dissemination of information about the attractiveness of loan offers, the ease of applying for and receiving a loan. Whereas information about the process of payment and repayment of the loan (for example, the reasons for collecting fines and interest for late monthly payments) becomes known to the borrower only when reading the loan agreement, in which the borrower’s rights are minimal, but the obligations under which he is obliged to pay various fines to the bank are given great attention from the bank.

On the one hand, such massive dissemination of information about the attractiveness of loan offers, the ease of applying for and receiving a loan, gives the bank many new clients, and therefore profit.

On the other hand, the problems that the borrower encounters in the process of fulfilling the terms of the loan agreement with the bank, and various penalties, form a negative attitude towards the bank and a reluctance to take out a loan in the future.

Thus, an analysis of the lending process of Home Credit Bank shows that the modern practice of organizing the lending process requires improvement, both in terms of expanding lending facilities and improving the conditions for providing loans, since the lending process of Home Credit Bank is mainly limited to to attract funds for deposits.

3.5 Recommendations for improving the lending process of Home Credit Bank

To correct shortcomings in the organization of the credit process, Home Credit Bank needs to:

Provide the public with complete information about consumer loans, in accordance with the standards for disclosing information on consumer loans recommended by the Federal antimonopoly service And Central Bank Russia.

Thus, in stores selling goods on credit, it is necessary to create corners or stands with information disclosure standards when providing consumer loans. Representatives of Home Credit LLC must use in their work with clients recommended forms No. 1 “Information on consumer expenses for consumer credit" and No. 2 "Payment schedule for a consumer loan" to provide the consumer with information about the conditions for the provision, use and repayment of a consumer loan."

As part of the implementation of the transparency policy, the bank needs to pay special attention to information transparency, loyalty to borrowers, profitable terms for clients.

The bank should pay special attention to improving the financial literacy of clients. For example, place in your offices computers with calculators to calculate the cost of mortgage loans, cash loans, express loans, car loans and card loans, as well as dictionaries of banking terms for cards and mortgages.

A bank's transparency strategy and policy should be based on long-term relationships with clients. Bank administrators should devote most of their working time to working with the borrower before signing the contract - explaining the points and features of using the product.

Home Credit Bank must improve the level of services provided. For example, create an opportunity for each client to fill out a special form at bank offices and send your recommendations to the bank for improving the service.

Home Credit Bank needs to improve the level of service, not only offering high-quality products, but also saving the time of its customers.

It is also advisable to create a special group that will help clients throughout Russia deal with issues that arise in the process of using a loan and resolve controversial issues.

Conclusion

To summarize, it should be noted that for any commercial bank the correct and effective organization of the credit process is very important.

In conditions modern Russia lending to borrowers is a very risky and often downright dangerous activity (it is enough to take into account the share of unprofitable enterprises in this sector). However, there is no doubt that a significant number of failures of commercial banks in Russia are the result not only of high risks in the external environment, but also of poorly organized management, especially in the area of the credit process.

Therefore, every commercial bank is interested in increasing the level of organization of the lending process. A carefully designed credit process allows you to minimize credit risk by significantly reducing the likelihood of providing a loan to an unreliable borrower.

Thus, a high level of organization of the lending process is perhaps the best indicator of the bank’s overall work and the quality of its management.

In other words, with proper organization of the lending process in a bank, if you do not neglect any of the elementary lending rules developed by the centuries-old practice of many countries, if you exercise the necessary professional caution and even reasonable vigilance, then you can successfully work in the Russian market. And indeed, at present in our country there are already banks that allocate more than 75% of their assets to loans.

The course work was carried out using the example of Home Credit Bank. The priority of Home Credit and Finance Bank LLC is the provision of consumer lending services. The bank provides loans for the purchase of a wide range of durable goods.

The main goals facing Home Credit Bank today are to finally gain a foothold among the leaders Russian market consumer lending, systematically increase business profitability, attract respectable and trustworthy clients with high-quality, optimal loan products.

Currently, significant shortcomings have been identified in the organization of the credit process of the bank under study.

These weaknesses translate into loan portfolio weaknesses, including excessive concentration of loans in one industry, large portfolios of non-performing loans, loan losses, insolvency and lack of liquidity.

Thus, an analysis of the organization of the credit process of the Home Credit Bank shows that the modern practice of organizing the credit process requires improving the conditions for granting loans, since the credit process of the Home Credit Bank is reduced mainly to attracting funds on deposits.

Therefore, to correct shortcomings in the organization of the credit process, Home Credit Bank needs to:

Provide the population with complete information about consumer loans;

Pay special attention to information transparency, loyalty to borrowers, favorable conditions for clients;

The bank should pay special attention to improving the financial literacy of clients.

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The main stages of processing and issuing loans. The main stages of lending in a commercial bank. Recommendations for improving the lending process of Home Credit Bank

Main stages of lending

How does the process of obtaining a loan by a legal entity take place?

2. Bank loan Loan process

Bank loan

First stage of lending: review and analysis of the package of documents provided by the borrower

Discovered

The second stage of lending: making a decision to grant or refuse a loan

The third stage of lending: processing the loan

The fourth stage of lending: loan support (credit monitoring)

Fifth stage of lending: loan repayment

Topic 8. BANKING SYSTEM

Main stages of the loan process

First stage of lending: review and analysis of the package of documents provided by the borrower

The second stage of lending: making a decision to grant or refuse a loan

The third stage of lending: processing the loan

The fourth stage of lending: loan support (credit monitoring)

Fifth stage of lending: loan repayment

Chapter 1. Theoretical basis bank lending activities

1.1 Characteristics and essence of the loan

1.2 Credit as a product of a bank’s activities

1.3 Classification and types of loans

Chapter 2. Basics of organizing the credit process in a commercial bank

2.1 The concept and essence of the credit process in a commercial bank

2.2 Main stages of the loan process

Chapter 3. Credit process at Home Credit Bank

3.1 Characteristics of the activities of Home Credit Bank

3.2 Types of lending provided by Home Credit Bank

3.3 Organization of the credit process at Home Credit Bank

3.4 Disadvantages in the organization of the loan process of Home Credit Bank

3.5 Recommendations for improving the lending process of Home Credit Bank

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