home Ratings The bank's loan portfolio, its content and significance. Loan portfolio. Bank lending objects

The bank's loan portfolio, its content and significance. Loan portfolio. Bank lending objects

Nesterov A.K. Bank lending // Encyclopedia of the Nesterovs

System bank lending forms a range of diverse services for bank clients, first of all, credit programs, forming the basis of credit relations, implemented in various types and forms.

Bank lending concept

Bank lending is a set of financial and credit relations in which the lender and the borrower participate, implemented in the form of credit and settlement operations on the basis of payment, urgency and repayment.

In the modern economic system, the development of the bank lending system occurs in conditions of intensification of the process of providing loans.

Modern commercial banks, as part of the lending process, use a set of organizational and economic techniques to provide loans and ensure their subsequent repayment.

Main elements of bank lending:

Credit itself, as a special economic category;
Subjects of lending: lender and borrower;
Lending objects: material values, current and capital costs, covering liabilities;
Loan interest: payment of the cost of the loaned capital;
Lending security is the real conditions for repayment of the loan.

Bank loan

Bank credit is the main form of modern credit.

Credit (lat. creditum - loan from lat. credere - to trust) or credit relations in the scientific and economic sense are such transactions or trade turnover in which one party cedes ownership to the other of any values, on the terms of repayment (that is, the loan must be repaid in the future), payment (that is, a fee will be charged for using the loan - interest) and urgency (that is, the repayment period is set one way or another).

A loan is an economic transaction in which the owner Money or property provides them to the borrower on the terms of urgency, repayment and payment.

Credit as an economic category represents a certain type of social relations associated with the movement of value on the basis of repayment. Credit can be in commodity and monetary forms. In commodity form, it involves the transfer for temporary use of value in the form of a specific thing defined by generic characteristics. In the modern economic system, the monetary form of credit predominates. This means that the loan is provided and repaid in cash. The participation of money in credit relations does not deprive them of their specific features and does not transform credit into the economic category “money”. In a credit transaction there is no equivalent commodity-money exchange, but there is a transfer of value for temporary use with the condition of return after a certain time and payment of interest for the use of this value.

The repayment of the loaned value, which cannot be canceled by the will of one of the subjects of the credit transaction, is an integral feature of credit as an economic category. The essence of bank lending in all the diversity of credit relations is determined by the objective reasons for the existence of credit in a particular social formation.

Credit as a special form of value relations arises when the value released from one economic entity, for some time cannot enter a new reproductive cycle or be used in business transactions. Thanks to the loan, this value is transferred to another entity experiencing a temporary need for additional funds, and thus continues to function within the framework of the reproduction process.

According to the author of this article, a loan is a relationship between a lender and a borrower, in which the lender transfers money or things to the borrower, and the borrower undertakes to return the same amount of money or an equal number of things of the same kind and quality within a certain period of time.

Principles of bank lending

		Characteristic
	Repayment	Repayment means that loan funds received by the borrower for temporary use are subject to mandatory and timely return to the lender, the owner of the funds.
	Urgency	Urgency means meeting the deadlines for repaying the loan in full and meeting payment deadlines.
	Differentiation	Differentiation of loans means that loans are provided only to those who can obtain a loan and repay it on time.
	Security	The loan must be secured by the borrower's property.
	Payment	Payment – the need to pay for use credit funds, i.e. interest on loan.

Depending on the nature or property of the collateral, a loan can be either personal, collateral, or real. In the modern practice of bank lending, assignment (assignment) of claims and transfer of ownership rights are used as a form of ensuring loan repayment. “Assignment is an assignment by the borrower (assignor) of a claim to a third party (accounts receivable) to the bank as security for repayment of the loan. The assignment agreement provides for the transfer to the bank of the right to receive funds under the assigned claim.” If the amount received on the assigned claim exceeds the loan amount and accrued interest, the difference between them is returned to the assignor.

When guarantees and sureties are used as collateral for loan repayment, a third party assumes property liability for the borrower. Guarantees are provided in the form of a special document (letter of guarantee) or avalization of a bill of exchange. The entity guaranteeing the borrower's obligation can be financially stable enterprises, special institutions with funds, and banks.

“The relationship arising by virtue of a loan between two parties constitutes a debt obligation.” A debt obligation arises not only with a loan, but also with any other credit turnover, for example, when buying and selling goods on credit, when buying real estate with deferred payment, etc.

Credit circulation, after barter in kind and money circulation, characterizes the third stage in the circulation of values, indicating a higher development of the economy.

The following categories of loans presented on the market can be distinguished: Russian Federation:

1. Loans to individuals

1.1. Consumer loans: cash for any needs; issued by bank transfer for payment for goods/services; loans for plastic cards (credit cards, debit cards with overdraft, revolving cards).

1.2. Loans for the purchase of cars with/without collateral of the purchased cars (car loan).

1.3. Education loans.

1.4. Mortgage loans:

1.4.1. Loans for the purchase of real estate secured by the purchased property;

1.4.2. Loans for the purchase of real estate secured by existing real estate;

1.4.3. Loans secured by real estate.

2. Loans to legal entities.

3. State credit.

The table shows the classification of bank loans according to various criteria.

Classification of bank loan

	Classification criterion	Type of bank loan
	By type of borrowers	Loans to state enterprises
		Loans to corporations
		Loans to small industrial structures
		Loans to individual borrowers
		Loans to banks
		Other loans (authorities, international organizations, etc.)
	By industry	Loans to industrial enterprises
		Loans to trade organizations
		Loans to agricultural enterprises
		Consumer loans
	By validity period	On demand (on call)
		Short term loans
		Medium-term loans
		Long-term loans
	According to the repayment schedule	Lump sum loans
		Loans repayable in equal payments
		Loans repayable in periodic payments (monthly, quarterly, etc.) - With grace period – no grace period
	By purpose	Loans for temporary needs (financing current working capital needs)
	By purpose	Loans for capital investments
	By provision	Unsecured (blank) loans
		Secured Loans
		Guaranteed loans
		Loans with other collateral (insurance)
	According to the nature of the circulation of funds	Seasonal loans
	According to the nature of the circulation of funds	Constantly revolving loans (revolving)
	By delivery method	Targeted loans
		Overdraft loans
		Current loans
	By area of application	Loans for production
	By area of application	Loans to the circulation sector
	By loan size


	Based on loan payment	Market rate loans
		Loans with higher interest rates
		Loans with preferential interest rates
	By method of repayment of the principal debt	Repayable in a lump sum
	By method of repayment of the principal debt	Repayable in installments
	According to the method of charging loan interest	Interest is paid at maturity
		Interest is paid in equal installments
		Interest is paid in uneven installments
	Based on intended purpose	General loan
	Based on intended purpose	Targeted loan

Credit relations are fixed in the loan agreement.

A loan agreement is a written agreement between a commercial bank and a borrower, according to which commercial Bank undertakes to provide a loan for an agreed amount, a certain period and for a specified fee, and the borrower undertakes to use the loan in accordance with its purpose and return the loan issued by the bank, as well as fulfill all the terms of the agreement.

There are the following unconditional principles of bank lending:

principle of urgency (the loan is given for a clearly defined period);
principle of repayment (the entire loan amount must be repaid in full within the agreed period);
principle of payment (for the right to use a loan, the borrower must pay an agreed amount of interest). The listed 3 principles in the Law “On Banks and Banking Activities” (Article 1) are called conditions;
the principle of subordinating a credit transaction to legal norms and banking rules (in particular, a written credit agreement/agreement is required that does not contradict the law and regulations of the Central Bank of the Russian Federation);
the principle of immutability of bank lending conditions (provisions loan agreement/agreements). If they change, then this must be done in accordance with the rules formulated in the loan agreement/agreement itself or in a special annex to it;
the principle of mutual benefit of a credit transaction (its terms must adequately take into account the commercial interests and capabilities of both parties).

A special group of principles should include the common rules of bank lending, which are used if such is the will of the parties expressed in the loan agreement, and should not be applied unless included in such an agreement (not unconditional principles):

principle intended use loan, meaning agreement with the lender on the intended purpose and use of the loan;
the principle of secured bank lending (the loan can be fully, partially secured or not secured at all).

The subjects of bank lending are the lender and the borrower. Lenders provide their capital in the form of a loan at the disposal of the borrower, and the borrower receives this loan for a certain period of time with subsequent repayment.

Lenders are financial and credit organizations that accumulate and mobilize monetary capital, temporarily released in the process of circulation of funds, and provide temporary use to those who need additional capital. Commercial banks are limited by the state in issuing loans. Restrictions are imposed by the required reserve norm and the averaging coefficient. A bank can issue a loan by crediting the loan recipient's account with an amount much greater than what is held as the bank's reserve at the central bank. Thus, with the permission of the state, commercial banks participate in the process of creating the money supply.

The bank provides funds to borrowers in the following order:

Within the framework of the bank lending system, borrowers can be enterprises of any type, regardless of their form of ownership, and individuals. Acting as lenders, banks select those potential borrowers who meet the criteria for issuing a loan. Borrowers can be classified according to several criteria.

1. Type of borrower

large and medium enterprises;
small businesses and individual entrepreneurs;
individuals;

2. Level of solvency

stable, i.e. the client’s regular income allows him to repay the loan without difficulty;
unstable, i.e. the client has an unstable income or “gray” income, in such cases additional guarantee and an increase in the loan rate are required to compensate for the risk;
insolvent, i.e., having taken a loan, the client will not be able to repay the loan and interest on it.

For individuals Additional signs have been adopted to more fully assess and objectively characterize the borrower:

“Age” is a simple attribute that can take a value in the range from 20 to 100.
“Property” is a complex attribute. Types of property can be a house, apartment, car, etc. Since the borrower can own several types of property, this attribute can have several states or none.
“Income” is a simple sign. The value of this characteristic is taken to be the ratio of the borrower’s monthly income to the requested loan, as a percentage. Thus, the “income” attribute can take values in the range from 0 to 100 percent of the requested loan.
“Was under investigation” is a simple sign, “Yes”, “No”.
“Has guarantors” is a simple sign, “Yes”, “No”.
"It has higher education" - a simple sign, "Yes", "No".

Based on these signs, the final decision on the loan is made.

Depending on the size of the enterprise, clients are divided into three groups - individual entrepreneurs and small enterprises, medium and large enterprises. Individual entrepreneurs and small businesses can respond faster to the needs of the market and client. Their structure is lighter, which gives them the opportunity to quickly change directions of their business activities and receive high profits. But they usually have small equity capital, which leads to bankruptcy in conditions of fierce competition and some unforeseen changes of a political and economic nature. Large enterprises, on the contrary, are more inert. They do not respond quickly to changes in the needs of the market and a particular consumer, they do not often change the direction of their business activities, but they have significant net worth and can survive some unfavorable economic situations. Medium-sized enterprises occupy an intermediate position.

Borrowing enterprises can also be classified according to industries (agricultural, industrial, utilities, trade, services) and loan purposes (industrial, for the formation of working capital, investment, seasonal, for eliminating temporary financial difficulties, intermediate, for transactions with securities, import and export).

Bank lending objects

Objects of lending, being an important element of the bank lending system, represent directly what a specific loan is issued for, thus acting as the subject of a credit transaction. The object of bank lending can have a material form, or reflect a material process directly or indirectly. If the loan object has a material form, for example, real estate, raw materials, a car, etc., i.e. acts as a tangible object, the lender provides the borrower with a loan for its purchase. If the lending object is a direct reflection of a specific material process, for example, when an enterprise lacks own funds and proceeds for making current payments, the lender provides the borrower with a loan to ensure continuous payment turnover. If the object of lending indirectly reflects a material process, for example, eliminating the consequences of natural disasters that do not allow the enterprise to resume the production process, then the loan provided by the lender is used by the borrower to ensure the very possibility of resuming payment turnover.

Loan interest

In bank lending, loan interest is a fee paid by the borrower to the lender for the right to use credit resources.

The amount of loan interest is indicated as a rate and measured as a percentage. Loan interest is calculated for the period of validity of the right to use the loan provided.

The borrower and the lender pursue the goal of extracting a certain benefit by entering into credit relations within the framework of bank lending, the difference is that for the borrower this is a benefit from using the loan, and for the lender it is income on the loaned value.

Security for bank lending

Collateral in bank lending creates real conditions for the borrower to repay the loan taken from the lender.

The security of the loan is expressed as collateral. Collateral is property or other valuables that are given by the borrower to secure a loan. If the borrower fails to repay the loan, the lender has every right to satisfy his claim from the value of the collateral.

Providing collateral as security for a loan generally reduces the risk for the lender, and therefore reduces the interest rate. Thus, collateral for bank lending acts as a condition for sustainable lending, and loans can be secured, guaranteed, unsecured or have other security, such as insurance.

IN modern conditions approaches to securing a loan differ significantly, since material security of the borrower does not always mean repayment of the loan, and, conversely, intangible factors can contribute to the full repayment of the loan. These factors include financial reputation, credit culture, credit history, trust on the part of the lender, etc. Thus, the possibility of issuing financially unsecured loans appears in the case when there is a high level of organization of bank lending on the lender’s side, and the borrower enjoys his high trust.

In this regard, assessing the borrower’s creditworthiness, which is one of the stages of the credit process, becomes of great importance. “The creditworthiness of a commercial bank client is the borrower’s ability to pay off his debt obligations (principal and interest) in full and on time.” The level of a client's creditworthiness determines the bank's risk level when issuing a loan to a specific borrower.

"A credit rating is a bank's assessment of financial condition potential borrower from the point of view of the possibility and feasibility of providing him with a loan and determines the likelihood of his timely repayment in the future." The main purpose of assessing documents for obtaining a loan is to determine the ability and willingness of the borrower to repay the required loan on time and in full.

conclusions

Bank lending is today the main form of providing funds for a certain percentage charged for the use of funds; one of the main forms of lending is a consumer loan. Credit relations are secured by a loan agreement, which ensures both the rights of the lender and the borrower.

The elements of bank lending are the loan itself, which is the capital being lent, and the subjects of lending, i.e. lender and borrower, lending objects, loan interest and loan security. The objects of lending are any material assets or expenses. Loan interest is charged by the lender for granting the right to use the loaned capital. Collateral in bank lending implies the creation of conditions under which loan repayment is possible.

The relationship arising by virtue of a loan between two lending entities constitutes a debt obligation, the subject of which is the direct object of lending.

One of the fundamental foundations of the credit system is loan interest, which is essentially a payment for the right to use loan capital and represents a special type of surplus value.

Lending security is a set of organizational, material and financial capabilities for creating real conditions for the borrower to repay a loan taken from the lender, whose security is expressed as collateral. In this regard, assessing the borrower’s creditworthiness, which allows the bank to decide on the possibility of providing a loan, becomes of great importance.

Literature

Banking. / ed. Ya.E. Chernysheva. – M.: Unity-Dana, 2013.
Banking. / ed. G.G. Korobova. – M.: Economist, 2012.
Sviridov O.Yu. Finance, money turnover, credit. – Rostov-on-Don: Phoenix, 2011.
Kuchkovskaya V.O. Banking - M.: Progress, 2012.
Klyuchnikov I.K., Molchanova O.A., Klyuchnikov O.I. Credit and banks. – M.: Finance and Statistics, 2013.
Chelnakov V.A. Banks and banking operations. – M.: Infra-M, 2013.
Samsonova R.G. Finance and credit - M.: Prospekt, 2012
Bocharova I.V. Analysis and assessment of the borrower’s creditworthiness. – M.: Knorus, 2011.
Endovitsky D.A., Bocharova I.V. Analysis and assessment of the borrower’s creditworthiness. – KnoRus, 2010.

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Posted on http://www.allbest.ru/

INconducting

However, the main historical function of banks is lending.

The domestic banking system is characterized by a stable increase in the amount of loans provided to the borrower with a simultaneous increase in the specific share of overdue loans.

At the same time, with an increase in the total value of the banks’ loan portfolio, the share of overdue loans increases. An interesting factor is that the concentration of lending operations occurs in a limited number of banks. According to Interfax, as banks deepen their specialization in lending, the quality of their loan portfolios gradually begins to improve. Thus, for banks with loans up to 40% of assets, the overdue amount is about 10%, and for banks with the share of loans in assets over 40%, the overdue amount does not exceed 5%.

These figures indicate that the formation of a high-quality loan portfolio is an achievable goal for the bank, and the management of the bank’s loan operations serves to achieve it.

Russia's transition to market economy fundamentally changed the operating conditions of all economic entities, and doubly affected the nature of the functioning of banks. Thus, it turns out that banks themselves have changed as business entities, and they also have to adapt to changes in the activities of their clients.

The rapid development of the Russian banking system determined the ability of bank managers and their employees to master methods and techniques of work, in contrast to Western countries, where the process of formation of the banking system takes place over several centuries.

In general, the problems of the Russian banking system are due to two reasons: firstly, there are unfavorable macroeconomic conditions, and secondly, there are internal reasons related to the peculiarities of the activities of commercial banks themselves.

The purpose of the course work is to clarify the essence of the loan portfolio of a commercial bank.

Among traditional types of banking activities, the provision of loans is the main operation that ensures their profitability and stability of existence. By issuing loans to individuals and legal entities, the bank forms its loan portfolio. Thus, the bank’s loan portfolio is the totality of debt balances on active credit operations as of a certain date. The client loan portfolio is its integral part and represents the balance of debt on credit transactions of the bank with individuals and legal entities as of a certain date. There are various classifications of the loan portfolio, among which one can find the division of the portfolio into gross (the total volume of loans issued by the bank at a certain point in time) and net (the gross portfolio minus the amount of reserves to cover possible losses on credit operations).

1. The essence and concept of a commercial bank’s loan portfolio

Credit activity is one of the most important features constituting the very concept of a bank. The level of organization of the lending process is perhaps the best indicator of the overall work of a bank and the quality of its management.

In scientific and educational literature, as well as in regulatory documents, the nature of the loan is sometimes interpreted ambiguously. In this regard, it is necessary to first clarify the key points associated with this concept.

The concepts of “loan” and “credit”. In the Civil Code of the Russian Federation, these similar concepts differ meaningfully in a number of ways. From their comparison it follows that a loan (a special case of a loan relationship) has the following inherent properties:

It should deal with the transfer by one party (the lender) to the other party (the borrower) not of any things, but only of money, and only for temporary use (not into the ownership of the borrower). Moreover, the specified money may not be the property of the creditor himself;

It cannot, unless otherwise provided in the contract, be interest-free. In this case, the contractual execution (in writing) of issuing or receiving a loan is considered as a mandatory, although not specific to the credit transaction, parameter. For a loan agreement written form not always required;

In it, only a credit institution (usually a bank) acts as a lender. In this sense, a loan is a bank loan in cash. This refers to the active lending option, when the bank does not receive, but gives a loan;

The bank's obligation to issue a loan in accordance with the concluded agreement is unconditional;

The loan is also repaid in cash.

In addition, the need to worry about the future repayment of a loan issued by a bank forces it to usually require from a potential borrower:

1) justification for reasonableness and economic efficiency operation (transaction) for which a loan is requested, which generally means openness and certainty regarding the intended purpose of the loan;

2) providing the lender with the opportunity to control, within certain limits, the intended use of the loan, the effectiveness of such use and, in general, the efficiency of the business of the borrower - a legal entity;

3) providing the lender with known material or other security for the loan issued by him as evidence of the reliability of the relationship between the parties, even in the event of an unsuccessful operation (transaction) by the borrower for which the loan was taken, or in general unfavorable development of the business and financial condition of the borrower.

Finally, the bank must initially credit the loan issued to the borrower to a loan account opened specifically for this purpose.

Summarizing the above points, we can conclude that the loan involves the transfer to the borrower (legal entity or individual) by the bank, on the basis of a special written agreement, of exclusively funds (the bank’s own funds and/or borrowed funds) for a period specified in such an agreement on the terms of repayment and payment in monetary form, control, and also, as a rule, intended use and security.

It should also be borne in mind that the loan takes place not from the moment the parties sign the loan agreement, but from the moment the corresponding amount is actually provided to the borrower.

The concepts of “credit” and “loan”. In banking legislation, the term “loan” is not used (in Chapter 38 of the Civil Code this is understood as the gratuitous use of an item received from another person, i.e. something that does not apply to lending). At the same time, it is widely used in Bank of Russia documents and literature. But in neither case is the purpose of its use substantiated, nor the special content that may distinguish a loan from a credit. In fact, these terms are used as synonyms; more precisely, a loan is understood as an active loan.

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 the central 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 (non-financial sector of the economy), the bank’s credit relations with them are of a different nature - here the bank is almost always the party giving the loan.

In Russian civil law There are two fundamentally different types of loans.

1) Agreement on the provision of property for temporary free use. The parties to the agreement can be both individuals and legal entities, and its subject is only individually defined things, in contrast to a loan agreement, the subject of which is money or things defined by generic characteristics. A loan agreement, being in many ways similar to a property lease agreement, has the following differences: a) gratuitousness; b) can be not only consensual, but also real; c) the property that constitutes the subject of the contract can be claimed from the owner only by legal entities.

Loans from inventory assets are secured by collateral of these assets, and sometimes by guarantees from higher-level organizations.

2) Bank loan - funds provided by banks in the process of lending against urgent obligations of organizations and citizens or against obligations due at presentation.

2. Credit policybank and mechanisms for its implementation

Before starting to issue loans, the bank must formulate its credit policy (along with and in accordance with its policies in relation to all other areas of activity - deposit, interest, tariff, technical, personnel, in relation to clients, competitors, etc. ), as well as provide ways and means of translating it into real practice.

The formulation of a bank's policy(ies) is one of the stages of planning its activities. To define and approve your credit policy means to formulate and consolidate in the necessary internal documents the position of the bank’s management on at least the following issues:

a) priorities of the bank in the credit market, meaning the preferred ones for this bank:

Objects of lending (industries, types of production or other business);

The nature of relations with borrowers;

Types and sizes (minimum, maximum) of loans;

Loan servicing schemes;

Forms of ensuring loan repayment, etc.;

b) lending purposes:

Expected level of profitability of loans;

Other (not directly related to making a profit) goals.

For the bank to make informed decisions on this range of issues, a clear and balanced statement of the general goals of the bank’s activities for the coming period (i.e., good planning as a whole), an adequate analysis of the credit market (i.e. good job marketing service), clarity of prospects for the development of the bank’s resource base, correct assessment of the quality of the loan portfolio, taking into account the dynamics of the level of personnel qualifications and other factors.

In accordance with Regulation No. 254 “On the procedure for the formation by credit institutions of reserves for possible losses on loans...” the authorized body (bodies) of the bank adopts the bank’s internal documents on the classification of loans (loans) and the formation of appropriate reserves, which must comply with the requirements of this Regulation and other regulatory legal acts on issues of credit policy and/or methods of its implementation. In these internal documents, the bank reflects, in particular:

1) a credit risk assessment system that allows classifying loans into quality categories, including containing more detailed procedures for assessing the quality of loans and creating a reserve than provided for in the Regulations;

2) the procedure for assessing loans, including the criteria for their assessment, the procedure for documenting and confirming such an assessment;

3) procedures for making and executing decisions on the formation of a reserve;

4) procedures for making and executing decisions on writing off loans from the balance sheet that are unrealistic for collection;

5) a description of the methods, rules and procedures used in assessing the financial position of the borrower, a list of sources of information used on this issue, the range of information necessary to assess the financial position of the borrower, as well as the powers of bank employees participating in this assessment;

6) the procedure for compiling and further maintaining the borrower’s file;

7) the procedure and frequency of determining the value of the collateral;

8) the procedure and frequency of assessing the liquidity of the collateral, as well as the procedure for determining the amount of the reserve, taking into account the collateral for the loan;

9) the procedure for assessing credit risk for a portfolio of homogeneous loans;

10) the procedure and frequency of formation (regulation) of the reserve.

At the same time, the bank must publicly disclose information about its credit policy as part of reporting submitted in accordance with the requirements of Bank of Russia regulations.

The role of credit policy should be understood as the totality of its functions, i.e. expectations associated with its development and application. Therefore, we can assume that the function of a bank’s credit policy in general is to optimize the credit process, bearing in mind that the goals and priorities for the development (improvement) of lending, determined by the bank, constitute its credit policy.

The provisions of credit policy must be supported by practical measures, which together constitute mechanisms for implementing credit policy. Measures designed to implement the intended credit policy in the expected circumstances (necessary and/or possible actions to be taken) must also be reviewed and approved by the bank's management, and the corresponding decisions are formalized in the form of internal documents.

A special block of mechanisms for implementing credit policy constitutes a mandatory set of instructions and methodological materials for each bank, regulating all aspects of organizing its work in the credit market.

All provisions of the credit policy are aimed at achieving the highest possible quality of the bank’s lending activities.

The quality of a bank’s lending activities (the quality of the bank’s organization of its lending activities) can be judged by a number of criteria (signs), including:

Profitability of credit operations (in dynamics);

Availability of a clearly formulated credit policy for each specific period, adequate to the capabilities of the bank itself and the interests of its clients, as well as clearly defined mechanisms (including organizational, information and analytical support) and procedures for the implementation of such a policy (regulations for all stages of a credit operation);

Compliance with legislation and regulations of the Bank of Russia related to the credit process;

Condition of the loan portfolio;

Availability of a working credit risk management mechanism.

Loan portfolio- a set of bank claims for loans, which are classified according to criteria associated with various factors of credit risk or methods of protection against it.

The concept of a bank's loan portfolio is interpreted ambiguously in the economic literature. Some authors interpret the loan portfolio very broadly, including everything financial assets and even the bank’s liabilities, others associate the concept under consideration only with the bank’s lending operations, others emphasize that the loan portfolio is not a simple set of elements, but a classified set.

The regulatory documents of the Bank of Russia regulating certain aspects of loan portfolio management define its structure, from which it follows that it includes not only the loan segment, but also various other requirements of the bank of a credit nature: placed deposits, interbank loans, requirements for receipt (repayment) ) debt securities, shares and bills, discounted bills, factoring, claims on rights acquired under a transaction, on mortgages purchased on the secondary market, on transactions for the sale (purchase) of assets with deferred payment (delivery), on paid letters of credit, on financial lease transactions (leasing), for the return of funds, if purchased securities and other financial assets are unquoted or not traded organized market.

This expanded content of the totality of elements that form the loan portfolio is explained by the fact that such categories as deposit, interbank loan, factoring, guarantees, leasing, securities have similar essential characteristics associated with the return movement of value and the absence of a change of owner. The differences lie in the content of the object of relationship and the form of movement of value.

Analysis of the bank's loan portfolio is carried out regularly and forms the basis of its management, which aims to reduce the total credit risk through diversification of loan investments and identifying the riskiest segments of the credit market. The main stages of the analysis: selection of criteria for assessing the quality of loans, determination of the method of this assessment (number or point system of assessment, classification of loans by risk groups, determination of the risk percentage for each group, calculation absolute value risk in the context of each group and in general for the loan portfolio, determining the amount of reserve sources to cover possible loan losses, assessing the quality of the loan portfolio based on a system of financial ratios, as well as through its segmentation (structural analysis).

When forming a “loan portfolio”, it is necessary to take into account the following risks: credit, liquidity and interest.

Credit risk factors are the main criteria for its classification. Depending on the scope of the factors, internal and external credit risks are distinguished; on the degree of connection of factors with the activities of the bank - credit risk, dependent or independent of the activities of the bank. Credit risks dependent on the bank’s activities, taking into account its scale, are divided into fundamental (related to decision-making by managers involved in managing active and passive operations); commercial (related to the area of activity of the Central Federal District); individual and aggregate (loan portfolio risk, risk of a set of credit transactions).

Fundamental credit risks include risks associated with collateral margin standards, decisions to issue loans to borrowers who do not meet the bank’s standards, as well as those resulting from the bank’s interest rate and currency risk, etc.

Commercial risks are associated with credit policy in relation to small businesses, large and medium-sized clients - legal entities and individuals, with certain areas of the bank’s lending activities.

Individual credit risks include the risk of a credit product, service, operation (transaction), as well as the risk of the borrower or other counterparty.

The risk factors of a credit product (service) are, firstly, its compliance with the needs of the borrower (especially in terms of term and amount); secondly, business risk factors arising from the content of the event being financed; thirdly, the reliability of repayment sources; fourthly, the sufficiency and quality of support. In addition, credit risk factors may arise from operational risk, since in the process of creating a product and its variety - services - technological and accounting errors in documents, as well as abuse.

Factors of a borrower's credit risk are its reputation, including the level of management, operational efficiency, industry affiliation, professionalism of bank employees in assessing the borrower's creditworthiness, capital adequacy, degree of balance sheet liquidity, etc. The borrower's risks may be provoked by the credit institution itself due to the wrong choice of the type of loan and lending conditions.

The study of scientific works and publications of foreign and Russian authors regarding the definition of risk associated with bank liquidity allows us to identify discrepancies already at the conceptual level. Some economists highlight liquidity risk, while others highlight the risk of unbalanced liquidity.

Thus, summarizing the effective and factor components of liquidity risk, we can formulate its essence as follows: liquidity risk is the risk of incurring losses (losing part of capital) due to the inability or impossibility of the bank to attract additional financial resources in a timely manner and without losses for itself or to sell existing assets to fulfill obligations assumed to creditors and depositors.

Thus, in the monograph “Banking: Strategic Leadership”, edited by V. Platonov and M. Higgins, it is noted that the risk of insufficient liquidity is expressed in the inability to fulfill its obligations in a timely manner and this will require the sale of certain assets of the bank on unfavorable terms; the risk of excessive liquidity - loss of income due to an excess of highly liquid assets and, as a consequence, unjustified financing of low-yielding assets using paid resources for the bank.

The factor side of the risk of excess liquidity is also determined by internal and external factors. Their nature is the same for both types of this risk.

Thus, the uniform nature of internal factors is expressed in the fact that excess liquidity, like insufficient liquidity, is a reflection of the bank’s inability to promptly eliminate the discrepancy that has arisen between assets and liabilities of the corresponding periods. The reasons for this situation may be: in case of excessive liquidity, caution or inability to manage the situation, to find areas for development of bank operations; in case of a lack of liquidity - aggressive policy, inability to assess the real situation.

The uniform nature of external factors determines the bank’s inability to assess and take into account the external environment in which it operates.

The reasons causing the risk of unbalanced liquidity generally lie in the unsatisfactory management of the bank, which is unable to properly structure cash flows and ensure their quality.

Thus, the risk of unbalanced liquidity should be understood as the risk of loss of income due to the inability or inability of the bank to adjust its liquid position in a timely manner, i.e. bring into compliance and without loss for yourself the volume of obligations and the sources of their coverage.

Interest rate risk refers to those types of risk that the bank cannot avoid in its activities. Moreover, the responsibility for measuring, analyzing and managing it lies entirely with the management of the credit institution. Supervisory authorities are limited mainly to assessing the effectiveness of the risk management system created in a commercial bank.

The economic literature presents different points of view regarding the concept interest rate risk. Some authors interpret it as the risk of loss as a result of changes in interest rates. Other authors give a similar definition, considering interest rate risk as the probability of losses in the event of changes in interest rates on financial resources. Still others offer a broader definition, believing, in particular, that interest rate risk is the risk of losses due to an unfavorable change in interest rates on money market, which finds external expression in a fall in the interest margin, reducing it to zero or a negative value, while simultaneously indicating a possible negative impact on the market value of capital.

The Fundamental Principles of Banking Supervision (as set out in the Basel Committee) define interest rate risk as the risk that a bank's financial position may be potentially exposed to an adverse change in interest rates.

3 . Interest rate risk factors. The essence of interest rate risk allows us to identify factors influencing its levelno

Interest rate risk factors can be divided into internal and external. IN Russian economy Unlike developed countries The level of risk is mainly increased by external factors.

These include:

Instability of market conditions in terms of interest rate risk;

Legal regulation of interest rate risk;

Political conditions;

Economic situation in the country;

Competition in the banking services market;

Relationships with partners and clients;

International events.

Internal interest rate risk factors include:

Lack of a clear bank strategy in the field of interest rate risk management;

Miscalculations in the management of banking operations, leading to the creation of risky positions (the emergence of an imbalance in the structure and maturities of assets and liabilities, incorrect forecasts of changes in the yield curve, etc.);

Lack of a developed interest rate risk hedging program;

Disadvantages of planning and forecasting of bank development;

Personnel errors during operations.

The main problem in practice is the timely monitoring of interest rate risk factors, and this process must be continuous. In accordance with the identified causes of increased interest rate risk, it is necessary to adjust the risk management system of the bank.

The essence of a bank's loan portfolio can be considered at the categorical and applied levels. In the first aspect, the loan portfolio is the relationship between the bank and its counterparties regarding the return movement of value, which takes the form of credit requirements. In the second aspect, the loan portfolio is a collection of bank assets in the form of loans, discounted bills, interbank loans, deposits and other credit-related claims, classified into quality groups based on certain criteria.

The qualitative difference between the loan portfolio and other portfolios of a commercial bank lies in such essential properties of the loan and credit categories as the return movement of value between the participants in the relationship, as well as the monetary nature of the object of the relationship.

Conclusion

bank loan portfolio

Credit operations are the basis of the banking business, since they are the main source of income for the bank. But these operations are associated with the risk of loan non-repayment ( credit risk), to which banks are to one degree or another exposed in the process of lending to clients. That is why credit risk, as one of the types of banking risks, is the main object of attention of banks.

Effective management of a loan portfolio begins with the careful development of a lending policy by a credit institution, which is implemented in a document approved and periodically reviewed by the board of directors or board of the credit institution. It should formulate goals and objectives when providing funds in terms of ensuring high quality assets and profitability of this area of activity. A loan portfolio is a characteristic of the structure and quality of loans issued, classified according to certain criteria. One of these criteria used in foreign and domestic practice is the degree of credit risk. Therefore, the criterion determines the quality of the loan portfolio. Analysis and assessment of the quality of the loan portfolio allow bank managers to manage its lending operations.

Loan portfolio management has several stages: selection of criteria for assessing the quality of an individual loan; identification of the main groups of loans indicating the risk percentages associated with them; assessment of each loan issued by the bank based on selected criteria, i.e. assigning it to the appropriate group; determination of the structure of the loan portfolio in the context of classified loans; assessment of the quality of the loan portfolio as a whole; analysis of factors influencing changes in the structure of the loan portfolio over time; determining the amount of the reserve fund adequate to the total risk of the bank’s loan portfolio; development of measures to improve the quality of the loan portfolio. The fundamental point in managing a bank’s loan portfolio is the choice of criteria for assessing the quality of an individual loan.

Increasing the profitability of credit operations and reducing the risk associated with them are two opposing goals. As in all areas financial activities, Where highest income investors are brought by operations with increased risk; an increased interest rate for a loan is a payment for risk in banking. Thus, when forming a loan portfolio, the bank must adhere to the principle common to all investors - to combine highly profitable and quite risky investments with less profitable but less risky areas of lending.

It was revealed that the quality of the bank's loan portfolio can be managed by carrying out a set of measures aimed at tightening requirements for the borrower and increasing the diversification of the bank's loan portfolio.

The study showed that the quality of the loan portfolio of a commercial bank must be assessed not only by analyzing the structure of loan debt, but also by using standards and coefficients developed by the bank as part of the development of credit policy.

The Bank of Russia's insufficient elaboration of the problem of credit risk management significantly complicates the management of the quality of loan portfolios of commercial banks in Russia.

The main goal of Sberbank of Russia is to strengthen its leading position in the main segments of the Russian financial market, primarily in the markets banking services population and corporate clients. Sberbank considers the main tools for achieving this goal to be the development and implementation of a clear customer policy that takes into account the needs of various customer groups, the introduction of a business model focused primarily on customers, in order to improve conditions and improve the quality of customer service, and expand the range of products and services. In particular, it is planned to increase the information transparency of the Bank.

As it becomes clear from this work, the problem of managing the quality of a commercial bank’s loan portfolio is large and multifaceted, and existing quality management methods are diverse and for more successful functioning of the banking system it is necessary to introduce a unified regulatory framework for all banks.

Bibliography

1.Azhdansky Code of the Russian Federation.

2. Tavasiev A.M. Banking: managing a credit organization: a textbook. -M.: “Dashkov and K”, 2007. -668s.

3. Development concept of Sberbank of Russia until 2012. The project was approved by the Strategic Planning Committee of the Supervisory Board of the Savings Bank of Russia (minutes of meeting No. 1 of July 24, 2007).

4. Lavrushin O. I. Banking: Textbook - M.: KNORUS, 2006. -768 p.

5. Lavrushin O.I., Banking risks, M., KNORUS, 2007, 231 p.

6. Regulations of the Central Bank of Russia No. 254-P dated March 26, 2004 “On the procedure for the formation by credit institutions of reserves for possible losses on loans, on loan and equivalent debt.”

7. Official website of the Central Bank of Russia, www.cbr.ru.

8. Official website of Sberbank of Russia, www.sbrf.ru.

Posted on Allbest.ru

Introduction

In world practice, economic development is inextricably linked with credit, which in various forms penetrates into all spheres of economic life. This is evidenced by the expansion of the range of bank operations, including in the field of lending. Carrying out banking operations with a wide clientele is an important feature of modern banking in all countries of the world with a developed credit system.

Foreign experience indicates that banks that provide clients with a more diverse range of high-quality services usually have advantages over banks with a limited range of services. The active work of commercial banks in the field of lending is an indispensable condition for the successful competition of these institutions, leading to increased production, increased employment, and increased solvency of participants in economic relations.

In this case, we are talking not only about improving lending techniques, but also about the development and implementation of new ways to reduce credit risks, as well as improve the formation of a loan portfolio.

Currently, the low quality of the loan portfolio is the main reason for the bankruptcy of many banks. In modern conditions of development of banking, the quality of the loan portfolio becomes decisive for the survival and success of the bank as a commercial enterprise.

For banking organization the formation of a loan portfolio and management of its qualitative and quantitative characteristics is one of the predetermining factors of activity, since this process includes numerous elements that determine the successful functioning of the bank.

The relevance of the topic lies in the fact that currently,in the modern banking system, the tasks of improving the formation and management of the bank’s loan portfolio put forward the need to use economic methods credit management, focused on compliance with the economic boundaries of credit. The loan portfolio serves as the main source of income for the bank and at the same time the main source of risk for asset placement.

The purpose of the course work is to study the formation of a loan portfolio from the point of view of theory and practical application, study the problems of improving lending, as well as analyze the loan portfolio.

Research objectives:

Consider the essence and structure of the bank’s loan portfolio;
Determine the methodology for assessing the quality of the loan portfolio;
Study the mechanism for providing credit;
Identify ways to improve the technology of forming a loan portfolio and its quality;
Determine ways to manage the loan portfolio of a commercial bank;
Investigate problems of optimizing the loan portfolio.

The object of study of this course work is the activities of banks of the Russian Federation in lending to individuals and legal entities.

The subject of this course work is an analysis of the quality of the bank's loan portfolio.

This course work is written on the basis of printed and information sources on the global Internet. These are all sources of both theoretical and analytical, as well as statistical nature.

In the course of working on the topic, the following research methods were used: method of analysis, synthesis, systematization of the information received on this topic in the form of tables and graphs.

The practical significance of the work lies in the fact that the information presented in it can be used to familiarize yourself with this topic or further study it.

The work consists of an introduction, three sections, a conclusion, a bibliography and appendices.

1 Theoretical aspects formation and analysis of the quality of the bank’s loan portfolio

1.1. The essence and structure of the bank’s loan portfolio

There are many different approaches to the issue of defining the concept and essence of a bank’s loan portfolio. A portfolio should be understood as a collection, set, stock of certain material, financial, ideological or other parameters that give an idea of the nature, direction, volume of activity, prospects for the market niche of a company, bank, organization.[4, p.30]

In foreign economic literature, a loan portfolio is understood as a characteristic of the structure and quality of issued loans, classified according to certain criteria depending on the set management goals. Recently, an increasing number of domestic specialists have adopted foreign methods for determining the concept of a loan portfolio. (Annex 1)

The regulatory documents of the Bank of Russia regulating certain aspects of loan portfolio management define its structure, from which it follows that it includes not only the loan portfolio, but also various other credit requirements of the bank: loans granted and received, deposits placed and attracted, interbank loans and deposits, factoring, claims for receipt (return) of debt securities, shares and bills, discounted bills, claims for rights acquired in a transaction, for mortgages purchased on the secondary market, for transactions of sale (purchase) of assets with deferred payment (delivery) , for paid letters of credit, for financial lease (leasing) transactions, for the return of funds, if the purchased securities and other financial assets are unquoted or not traded on the organized market, amounts paid by the credit institution to the beneficiary under bank guarantees, but collected from the principal. This structure of the loan portfolio is explained by the similarity of such categories as deposit, interbank loan, factoring, guarantees, leasing, securities, which in their economic essence associated with the return movement of value and the absence of a change of ownership.[8,p.1]

The essence of a bank's loan portfolio can be considered at the categorical and applied levels.

In the first aspect, the loan portfolio is the economic relations that arise when issuing and repaying loans, carrying out equivalent to credit operations. In this case, the loan portfolio is defined as a set credit requirements bank and other credit requirements, as well as the totality of economic relations arising in this case.

In the second aspect, the loan portfolio is a collection of bank assets in the form of loans, discounted bills, interbank loans, deposits and other credit-related claims, classified into quality groups based on certain criteria.

The loan portfolio is characterized by:

1) profitability,

2) risk,

3) liquidity.

The main characteristic of the profitability of a loan portfolio is the effective annual interest rate, which serves as a tool for comparison with the profitability of other types of assets and analysis of the reasonableness of interest rates on issued loans. For analysis, as a rule, real yield is used - income received per unit of assets invested in loans over a certain period of time.

Loan portfolio risk represents the degree to which it is possible that circumstances will occur in which the bank will incur losses caused by the loans that make up the portfolio.

Liquidity refers to the ability financial instrument be transformed into cash, and the degree of liquidity is determined by the length of the time period during which this transformation can be carried out, therefore, for the loan portfolio, liquidity is expressed in the timely repayment of loans.

A loan portfolio, like any other, is characterized by size and structure. The concept of “loan portfolio size” must be considered in relation to the entire size of the bank’s portfolio of active-passive operations and in relation to the loan portfolios of other banks.

The structure of the loan portfolio is the ratio of specific types of credit transactions in the portfolio. Also, the structure of the loan portfolio can be considered as a set of parameters that the bank can control by changing the composition of the types of loans included in the portfolio and their volumes. The bank can change the structure of the portfolio in order to obtain the most favorable values of its characteristics - profitability, liquidity, risk.

Based on these indicators, the very concept of a loan portfolio can be characterized as a set of loans that have a certain structure, which in turn must meet the bank’s requirements for profitability, liquidity and risk level.

The bank's goals may change depending on the given degree of acceptable risk, but the ultimate goal remains unchanged - to obtain the greatest possible profit.

Depending on the purpose, the bank creates a loan portfolio of a certain type. Portfolio type, in general view, is presented as a portfolio characteristic in relation to income and risk.

Based on this, all loan portfolios can be divided into 3 types:

1) Income portfolio the portfolio is focused on stable income, while risks are minimized;

2) Risk portfolio the portfolio is designed for higher income, and it consists mainly of loans with a high degree of risk;

3) Balanced portfolio a portfolio in which loans of various types are rationally combined, both with a high degree of risk and with a minimum.

The loan portfolio consists of various types of loans provided by the bank. Credit performs certain functions. Thus, the functions of the loan portfolio must be determined through the functions of the loan.

The main functions of credit are the redistribution of capital and the replacement of real money with credit operations.

The loan portfolio must perform a redistribution function, the essence of which is the redistribution of loan capital within the portfolio among the subjects receiving the loan. It also consists of redistributing temporarily released financial resources according to industry. In this case, credit is a macro-regulator of the economy, ensuring the satisfaction of the demand of certain industries to attract additional funds.

The next main function of credit is the replacement of real money with credit operations. This function will be a function of the loan portfolio, since through the issuance of loans additional effective demand will be created within economic system, which helps to avoid a crisis of overproduction of goods and does not provoke inflation.

The loan portfolio also performs the function of accelerating the concentration of capital, which consists in providing financial resources priority areas of activity. This function will not be fulfilled if the bank directs funds only to the most profitable sectors, without taking into account national interests.

1.2. Legal regulation of the lending process

The modern banking system of Russia was created as a result of reforming the state credit system that developed during the period of a centralized planned economy. Banks in the Russian Federation are created and operate on the basis of the Federal Law of December 2, 1990 No. 395-1 “On Banks and Banking Activities” (as amended on March 21, 2002), which defines credit institutions and banks and lists the types of banking operations and transactions, the procedure for creating, liquidating and regulating the activities of credit institutions has been established.[10, p.1]

The current legislation enshrines the basic principles of the organization of the Russian banking system, which include the following: a two-tier structure, the implementation of banking regulation and supervision by the central bank, the universality of business banks and the commercial orientation of their activities.

The modern legal basis for the existence of the banking system is the Civil Code of the Russian Federation and the Constitution of the Russian Federation. Constitutional norms determine the bodies authorized to perform the functions of credit management, the procedure for their formation and the principles for carrying out the tasks assigned to them. The Constitution of the Russian Federation reflects the status, tasks, main functions and principles of organization and activities Central Bank of the Russian Federation as a public legal organization, its organizational structure, as well as fundamental rights and responsibilities.

Certain aspects of banking activities are also regulated by the Criminal Code of the Russian Federation, which provides protection from the most serious and socially dangerous attacks on the rights and interests of the state and other entities operating in credit and banking sector, as well as individuals and individuals using the services of banks and other credit institutions. For example, in Art. 185186 of the Criminal Code of the Russian Federation provides for criminal prosecution for the manufacture or sale of counterfeit money and securities, as well as the issuance of any banknotes other than the official one monetary unit. The Criminal Code of the Russian Federation provides for punishment for disclosing bank secrets, as well as for illegal banking activities and carrying out banking activities without registration.

In general, all major banking legislation and regulations are designed to ensure the management of the banking system as a whole. Nevertheless, the current legal framework for banking activities in Russia, despite its progressive nature and general market orientation, still does not fully correspond to the current economic situation and the international level of legal regulation of public relations.

Let us consider in more detail the legal regulation of the lending process in the Russian Federation. The most pressing issues here are the problems of collateral and loan repayment.

Types of loan collateral form two groups.

One group is the types of collateral traditionally accepted in banking practice. Conventionally, they can be called property types of security, since they are always backed by specific property in material or monetary form. For the practical implementation of these types there is good legal basis. Their legal regulation is contained in the norms of the Civil Code of the Russian Federation.

Another group of types of collateral, as a rule, cannot be assessed specifically a sum of money, which the lender can receive if the loan is not repaid or payment for the loan is not received. Moreover, some types of collateral cannot be separated at all from the enterprise implementing the investment project and sold or transferred in kind. But obtaining objective information about the state of these types of collateral gives banking specialists the opportunity to fairly reliably judge the likelihood of successful implementation investment project. Therefore, this group of types of support can be called information.

To ensure the repayment of loans, commercial banks can use all methods of ensuring the fulfillment of obligations provided for by current legislation.

Thus, according to the Civil Code of the Russian Federation, the fulfillment of obligations can be ensured in the following ways: penalty; collateral; retention of the debtor's property; surety; bank guarantee; deposit and other methods provided for by law and not contradicting the principles of civil legislation. The most common way to ensure the repayment of a loan is a pledge - a method of securing an obligation in which the creditor has the right, in the event of the debtor's failure to fulfill the obligation, to receive satisfaction from the pledged property preferentially before other creditors.

1.3. Formation of a loan portfolio and assessment of its quality

The formation of a loan portfolio begins after the general goal of the bank’s lending activities has been determined, a strategy for the bank’s credit policy has been developed, and defining priorities have been formulated. According to the bank's credit policy, lending limits are determined by terms, industries, and groups of borrowers. Therefore, constant monitoring of the compliance of the loan portfolio structure with the specified parameters is necessary.[2, p.20]

The issuance of each loan must be preceded by an analysis of the compliance of the loaned object with the bank’s credit policy and an assessment of the client’s creditworthiness. Assessing a borrower’s creditworthiness should not be limited to analysis financial results activities, management and marketing at the enterprise are to a large extent the guarantor of timely repayment of the loan and interest. It is obvious that the quality of the loan portfolio is determined not only by its structure, but also, above all, by its compliance with the strategic goals of the credit policy.

The entire process of forming a loan portfolio can be divided into three blocks. (Appendix 4)

The first block involves the formation of a system of lending limits in accordance with the goals and strategy of the bank’s credit policy. Setting lending limits performs the function of credit risk management. The loan portfolio, as is known, is not only a source of income, but also a source of risk. The degree of credit risk of banks depends on factors such as:

The degree of concentration of the bank’s lending activities in any area (industry) sensitive to changes in the economy;

The share of loans and other banking contracts falling on customers experiencing certain specific difficulties;

Concentration of the bank's activities in little-studied, new, non-traditional areas;

Introducing frequent or significant changes to the bank’s policy on providing loans and forming a securities portfolio;

Share of new and recently acquired clients;

Introduction of too many new services in a short period;

Accepting as collateral values that are difficult to sell on the market or subject to rapid depreciation.

In turn, setting lending limits is the main way to control the formation of a loan portfolio, used to reduce risks and improve long-term viability. By establishing lending limits, the proportions of various types of loans are optimized within the entire loan portfolio, taking into account the volume and structure of credit resources. This allows banks to:

Avoid losses critical to maintaining solvency

from thoughtless concentration of any type of risk;

Diversify the loan portfolio in order to reduce

concentration and ensuring stable profits.

Diversification of a loan portfolio is the distribution and dispersion of credit risk in several directions. Banks should limit lending to one large borrower or several large borrowers or extending large loans to a group of related borrowers.

The second block represents the selection of specific lending objects for inclusion in the loan portfolio. Selection is carried out, as a rule, on the basis of an assessment of the borrowers' creditworthiness. The general approach to considering real lending objects involves assessing the borrower’s area of activity, analyzing the intended purpose of the funds, choosing the type of loan, and identifying the risks of the loan transaction. An important task is to determine the factors that allow for a preliminary selection of creditable objects.

First of all, it should be established whether the loan application

bank credit policy. If the answer is positive, the credit department employee conducts an analysis of the potential borrower’s creditworthiness.

In banking practice, the analysis of the borrower’s financial condition is carried out using the following methods based on its balance sheet and financial statements:

Vertical analysis;

Horizontal analysis;

Determining whether the balance sheet structure is satisfactory;

Calculation of the lender's net assets on the balance sheet;

Calculation of financial ratios and their comparison with standard values.

The third block - the block of analysis of the state of the loan portfolio and management of deviations - largely overlaps with the operational management of the loan portfolio, namely with the current monitoring of the state of the loan portfolio. The prerogative of the medium term remains the development and implementation of measures aimed at improving the quality of the loan portfolio.

An important characteristic of a bank's credit policy is the quality of its loan portfolio.

Loan portfolio assessmentis a procedure for studying the qualitative characteristics of the bank and the repayment of loans, reducing credit risks - that is, the absence of payments for the amounts of the main loan agreement and interest on it.

Loans are the main source of bank profit, but at the same time the main source of risk, on which the stability and development prospects of the institution depend. In crisis conditions, or in the absence of proper checks and recalculations, it is quite difficult to determine the projected growth of overdue debt; thus, reserves appear that do not correspond to reality. Extra expenses arise and costs appear that could have been avoided.Loan portfolio assessmentcompletely solves this problem.

The objectives of assessing the quality of the bank’s loan portfolio:

Reducing the share of overdue debt in the loan portfolio;
Formation of an adequate reserve to cover expected costs of the loan portfolio;
Understanding the factors leading to increased risks in the loan portfolio;
Understanding the factors causing a decrease in lending profitability and maintaining reserves at the required level.

Basis loan portfolio assessmentsis the correct classification and distribution of loans:

1st risk group “Standard loans”. These are loans or credits, the debt for which is repaid on time and in full. This also includes loans, the repayment period of which has been increased by in the prescribed manner, but no more than two times, as well as secured courts overdue by up to 30 days. For loans of the 1st risk group, banking institutions must create a reserve for possible losses in the amount of at least 2% of the amount of loans issued;

2nd risk group “Non-standard loans”. These are undersecured loans and loans that are up to 30 days overdue, as well as secured loans that are overdue up to 60 days. For loans of the 2nd risk group, banking institutions must create a reserve for possible losses in the amount of at least 5% of the amount of loans issued;

3rd risk group “Doubtful loans”. These are unsecured loans that are overdue up to 30 days, as well as unsecured loans that are overdue up to 60 days and secured loans that are overdue up to 180 days. For loans of the 3rd risk group, banking institutions must create a reserve for possible losses in the amount of at least 30% of the amount of loans issued;

4th risk group “Dangerous loans”. These are unsecured loans that are up to 60 days overdue, as well as undersecured loans that are up to 180 days overdue. In such cases, banking institutions must create a reserve for possible losses in the amount of 75% of the amount of loans issued;

5th risk group “Bad loans”. These are unsecured loans that are up to 180 days overdue, as well as all loans overdue over 180 days. For loans of the 5th group, banking institutions must create a reserve for possible losses in the amount of 100% of the amount of loans issued.

Conclusion

Having analyzed the above, we can conclude that the formation of a loan portfolio by a bank is a very complex and important process, because the formation of a bank’s loan portfolio is directly dependent on the quality and risk of loans issued.

In addition, the state of the loan portfolio predetermines the results of the bank’s lending operations, so constant monitoring makes it possible to identify deviations from a given optimum and develop measures in the medium term to prevent them in the future.

2 Technology for the formation of a bank’s loan portfolio, registration and accounting of credit transactions

2.1. The procedure for forming a bank's loan portfolio

There are five stages of forming an optimal loan portfolio:

1. analysis of factors affecting the demand and supply of credit;

2. formation of the credit potential of a commercial bank;

3. ensuring compliance of the structure of credit potential and issued loans;

4. analysis of issued loans based on various characteristics;

5. assessment of the efficiency and quality of the loan portfolio, development of measures to improve the bank’s loan portfolio.

At the first stage the analysis is carried out by the bank's analytical services, taking into account the regional markets in which the bank operates. It is desirable that this work become a permanent component in the process of improving the loan portfolio, as this will allow the bank to timely recognize changes in the banking environment and take measures to reduce credit risk and increase lending profitability.

Second stage of formation the optimal loan portfolio is characterized by determining the structure of the bank’s credit potential by sources of funds and their maturity. Credit potential in this case is considered as the sum of short-term and long-term credit potentials.[3,p.18]

Short-term potential consists of funds of legal entities (funds in settlement and current accounts, deposits up to one year); funds of individuals (demand deposits, deposits up to one year); funds of non-profit structures (account balances, deposits up to one year); interbank loans and funds in correspondent accounts (funds in correspondent accounts, loans with a term of up to one year); funds accumulated through securities (short-term securities with a circulation period of up to one year).

Long-term credit potential, like short-term, is the sum of funds of legal entities, individuals, non-profit structures, interbank loans, funds in correspondent accounts and securities, however, with the necessary condition that all of the above liabilities are long-term in nature, i.e. valid over one year.

Analysis of the credit potential of a commercial bank in the short and long term is used to assess the bank's potential to develop certain types of credit without disrupting liquidity.

Next, third, stage formation of an optimal loan portfolio analyzes the balance of credit potential and loan portfolio. Usually, Russian banks face a lack of medium- and long-term credit capacity. If the credit potential and the loan portfolio are unbalanced (for example, if there is a lack of credit resources of a given maturity), the bank must find sources of funds it needs (for example, attract long-term funds, turn to the interbank loan market to additionally issue long-term securities, analyze the possibilities of expanding equity capital).

With a lack of long-term credit potential and the impossibility of finding sources to replenish it, banks are forced to transform short-term potential into long-term, which in turn causes problems with banking liquidity.

If the credit potential exceeds the volume of the loan portfolio, the bank can redistribute credit resources and use them in other active operations (with securities, in foreign exchange transactions).

On fourth stageThe analysis of issued loans takes place based on various characteristics. Such indicators can include the loan repayment period, the nature of repayment, by category of borrower, by the method of charging interest, by the nature of loan collateral, by loan form, by profitability, by risk level, etc.

Analysis of loans issued according to the specified characteristics characterizes the structure of the loan portfolio existing in a commercial bank.

Finally, the fifth stage of forming an optimal loan portfolio assesses the efficiency and quality of the loan portfolio. It is based on determining the role of credit operations in the bank’s activities, the efficiency of using the bank’s credit potential, the level of interest rates and the volume of income from credit activities, the size of the interest margin, as well as determining the real risk from credit operations based on an analysis of overdue debt.

2.2. The procedure for providing and maintaining loans

The procedure for granting a loan by a bank occurs in several stages.

1) The borrower provides the bank with the following documents:

Statement; (Appendix 2)
Passport or equivalent document;
Certificates from the place of work of the Borrower and guarantors about income and the amount of deductions made (for pensioners - a certificate from the authorities social protection population);
Declaration of income received, certified tax office, for citizens engaged in business activities;
Questionnaires;
Passports (substituting documents) of guarantors and pledgors;
Other documents if necessary.

2) The loan officer is considering the issue of granting a loan, which includes:

Clarification of the purpose of obtaining a loan;
Determining the loan term;
Verification of documents provided by the borrower;
Assessment of the borrower's solvency;
Valuation of property provided as collateral;
The maximum amount of the loan provided is calculated;
The credit inspector makes a decision to refuse to provide a loan or to agree to provide it.

3) When the loan officer decides to issue a loan, a loan agreement is drawn up.

4) After the loan agreement is drawn up, the loan is provided.

A loan in rubles is issued in accordance with the terms of the loan agreement, both in cash and by bank transfer by:

Credits to the Borrower's account for a demand deposit;

Credits to the account plastic card Borrower;

Payment of bills of trade and other organizations;

Transfers to accounts of citizens - entrepreneurs.

5) The final stage of providing a loan is its support. An employee of the credit department constantly monitors compliance with the fulfillment of the borrower’s primary and accessory obligations, including:

Control of the targeted use of credit resources,

Control of timely and full repayment principal and interest, commissions.

Financial statements analyzed quarterly as of the date following the reporting one, throughout the entire period of validity of the credit transaction using the calculation module. Based on the results of the analysis, a report is drawn up, which also reflects the results of assessing the level of credit risk (taking into account the quality of loan servicing) and the calculation of the reserve. The report must be signed by the employee who compiled it, the head of the credit department, and included in the credit dossier.

Formation and regulation of a reserve for possible loan losses and a reserve for possible losses on contingent liabilities of a credit nature is carried out in the manner established by the current regulatory documents of the Bank of Russia and internal documents of the Bank.

An employee of the credit department monthly monitors the volume of funds passing through the borrower's accounts with the Bank. If there is a significant decrease in the volume of funds in comparison with the volume that was taken into account when determining the borrower’s creditworthiness, an employee of the credit department is obliged to establish the reasons for the drop in volumes.

Upon receipt of information about the borrower, which, in accordance with the loan agreement, may be the basis for the Bank’s refusal to fulfill obligations under the loan agreement or requirements early repayment loan, or any other information that may negatively affect the return of the loan product and the payment of interest, the loan officer is obliged to immediately report this to the Head Bank.

Control of collateral: control of the availability, safety and liquidity of property accepted as collateral is carried out by an employee of the collateral service in accordance with the procedure established by separate regulatory documents of the Bank. An assessment of the value of collateral in cases where the value of the collateral is taken into account when forming a reserve for possible loan losses is carried out by an employee of the collateral service on a quarterly basis, and a report with the assessment results is included in the credit file.

Control of the guarantor for a credit transaction is carried out by an employee of the credit department in accordance with the terms of the guarantee agreement.

If negative factors arise related to the condition of the collateral, the financial condition of the pledgor (guarantor, guarantor), an employee of the collateral service (employee of the credit department) immediately notifies his manager, the head of the problem assets service, the credit department of the branch, the security service and the control department. credit risks of the Parent Bank to determine a plan for further action.

Control of the provision and support of credit products by credit departments: the credit risk control division monitors the compliance of the terms of the provided credit products with the adopted decisions, as well as the compliance of the credit transaction and the support of the credit product with the internal regulatory documents of the Bank and the regulatory documents of the Bank of Russia.

In addition, the emergence of debt with signs of increased credit risk is monitored.

2.3. Documentation and accounting of credit transactions

Let's look at the documentation of credit transactions using the example of Alfa-Bank. The first document that must be drawn up by the bank is a loan agreement, on the basis of which funds are issued to the client. During the term of using the loan, the borrower will have to pay interest on the loan; for this, a memorial order is issued. (Appendix 7) The bank can also create reserves for possible losses, and for this the borrower must fill out an application for opening an account to record reserves.

Accounting for settlements with the bank on short-term loans is carried out on account 66 “Settlements on short-term loans and borrowings”, subaccount 66-1 “Settlements on short-term bank loans”.

To account for calculations long-term loans subaccount 1 “Settlements for long-term loans” is intended for account 67 “Settlements for long-term loans and borrowings”.

The organization's receipt of bank loans aimed at repaying obligations to suppliers for inventory items received from them is reflected in the debit of account 60 “Settlements with suppliers and contractors” and the credit of subaccounts 66-1 and 67-1.

Interest payable on short-term loans received for the implementation of the organization’s statutory activities (except for interest on overdue loans) is reflected in the credit of subaccount 66-1 “Settlements on short-term bank loans” and the debit of accounts 20 “Main production”, 26 “General expenses” , 44 “Implementation costs”.

Repayment of bank loans and interest for their use is reflected in the debit of subaccounts 66-1 and 67-1 and the credit of cash accounts: 51 “Current account”, 52 “Currency accounts”, 55 “Special accounts in banks”. When an organization transfers its debt to another person or concludes an agreement with a bank on the assignment of its claims to a person in relation to which it is a creditor, an entry is made in the debit of sub-accounts 66-1 and 67-1 and the credit of accounts 62 “Settlements with buyers and customers” ", 76 "Settlements with various debtors and creditors."

Analytical accounting of loans is carried out by type of loan and the banks providing them, indicating the date of receipt of the loan, its intended purpose, repayment period, interest rate, amount and balance of debt.

Accounts 66 and 67 also reflect settlements on short-term and long-term loans. A loan represents the transfer of funds or other valuables into the ownership of another party (borrower) by one party (the lender), and the borrower undertakes to return the loan amount to the lender in the form prescribed by the agreement. The loan agreement must stipulate the terms and procedure for repayment of the loan. Loans can be taken from other organizations or individuals.

Loans are also made in the form of repayment accounts receivable lenders, and in the form of issuing bonds.

Generalization of information on the status of settlements with lenders is carried out in subaccounts 66-2 “Settlements for short-term loans” and 67-2 “Settlements for long-term loans”. Funds raised for a period of no more than one year are classified as short-term loans, and funds received for a period of more than a year are classified as long-term.

When receiving a deferment in the payment of taxes (tax credit), their amount is reflected in the debit of account 68 “Calculations for taxes and fees” (for the corresponding sub-accounts) and the credit of accounts 66 and 67 (for the corresponding sub-accounts). Interest accrued for payment of the tax credit is reflected in the debit of account 91 “Operating income and expenses” and the credit of accounts 66 and 67 (For the corresponding subaccounts).

Repayment of tax credits (amounts of debt on deferred taxes) and interest for their use is reflected by an entry in the debit of accounts 66 and 67 (for the corresponding sub-accounts) and in the credit of cash accounting accounts - 51, 52, 55.

In relation to a loan agreement, interest should be understood as a monetary reward to the bank for the opportunity to use the loan. The amount of interest for using a loan is determined by the bank independently and individually for each borrower when concluding a loan agreement. If the loan is provided at the expense of budget funds or at the expense of other centralized resources, the amount of interest for using the loan is determined by the manager of these funds.

The amount of interest can be determined both in absolute terms (for example, 16% per annum), and by “linking” it to a well-known value established by regulation - the refinancing rate National Bank(for example, 0.5 refinancing rate). In this case, when the refinancing rate changes, the loan rate will change automatically, without additional agreement between the parties, i.e. the agreement of the parties to change it in such a case was reached initially.

In order to limit the risks of the parties, conditions may be determined on the “interest ceiling” - the maximum fixed interest rate, the “interest field” - the minimum fixed interest rate, the “interest corridor” - both the maximum and minimum fixed interest rate.

2.4. Analysis of the bank's loan portfolio for 2012-2014.

Let's consider the analysis of the loan portfolio using the example of Sberbank of Russia OJSC.

The bank can issue loans and conduct other active operations that generate income only within the limits of its available resources. Consequently, operations that result in the formation of such bank resources ( passive operations), play a primary and determining role in relation to active operations, logically and actually precede them and determine the volume and scale of profitable operations.

Like any economic entity, in order to ensure its activities, a bank must have a certain amount of money and tangible assets, which constitute its resources. From the point of view of origin, these resources consist of the bank’s own capital and borrowed funds temporarily attracted by it from outside (borrowed from other persons). Thus, the bank's resources (banking resources) are the totality of its own and borrowed funds available to the bank and used by it to conduct active operations. (Appendix 3)

Banks operate mainly on borrowed funds. At the same time, the first and second places in terms of importance of sources of raising funds are the money of the population and balances in the accounts of legal entities, and then - funds raised with the help of bank securities, interbank loans and deposits of legal entities.

So, the overwhelming majority of the money from which the bank operates and lives is made up of funds attracted by it, and attracted for a fee. Therefore, the problem of resource formation is more important for him than for any other economic entity. This circumstance gives rise to competition for resources between banks, banks and other credit and other organizations and enterprises, as well as other specific features of banking activities.

The structure of resources of different banks is very diverse, which is explained by the specific features of the activities of each particular bank (differences in the amount of capital, the number and nature of clients served, regional and other special conditions). (Appendix 5)

Having analyzed the table, we can conclude that at the end of the period under review the Bank had available credit resources in the amount of 1,470,710,399 thousand rubles. During the period under review, this figure decreased by 116,958,908 thousand rubles. (growth rate -7%). This occurred due to a higher growth rate of placed funds (5%) compared to the growth rate of bank resources (0.01%).

Analysis of the structure of the loan portfolio is one of the ways to assess its quality. In world and Russian banking practice, many criteria for segmenting a loan portfolio are known. Among them:

Lending entities;

Objects and purpose of the loan;

Loan terms;

Loan size;

Availability and nature of collateral, sources and methods of loan repayment, borrower’s creditworthiness;

Loan price;

Industry affiliation of the borrower.

Structural analysis is carried out to identify excessive concentration of lending operations in one segment, the share of large loans and loans provided to borrowers with low creditworthiness, which increases the degree of overall credit risk.

The subject of lending from the position of classical banking is legal or natural persons who are capable and have material or other guarantees to carry out economic, including credit transactions. The subject of receiving a loan can be the most different levels, starting from an individual private person, enterprise, firm up to the state.

By subject, bank loans can be divided into three large groups:

1) loans issued to legal entities to finance current production activities (corporate loans);

2) loans provided to individuals to meet personal needs (consumer loans);

3) loans issued to banks to maintain the liquidity of their balance sheet (interbank loans).

First, it is necessary to examine the composition of loan debt and the dynamics of changes in its components. (Appendix 6)

Based on the calculated data, attention should be paid to the fact that the main share of loan and equivalent debt is precisely loan debt, the share of which as of January 1, 2012. amounted to 99.98% (or 99987217 thousand rubles), which remained the same by the end of the reporting period. As of February 1, 2012 the amount of loan debt was 4127300434 thousand rubles. (growth rate 102.48%).

Loan debt is represented primarily by loans provided to customers, the share of which as of January 1, 2012 was. amounted to 98.36% (or 3961421739 thousand rubles), as of 02/1/2012. it decreased by 0.20 pp. and amounted to 98.17% (or 4051703602 thousand rubles) (growth rate of 102.28%).

The share of other placed funds, which as of January 1, 2012. was 0.0002% (or 8,000 thousand rubles), and as of February 1, 2012. - it increased by 1.5989 p.p. to a value of 1.60% (or 65999552 thousand rubles).

Thus, in general, we can note the low degree of diversification of the bank’s loan portfolio.

To manage liquidity, the bank needs to constantly monitor the diversification of the loan portfolio in terms of the terms of provision of credit resources.

For an in-depth study of the quality of the loan portfolio, the coefficient method is used.

Credit risk assessment ratios for the period under review showed different results. This is due to the fact that with an increase in total credit risk, the bank increased its loan portfolio to a greater extent than its own capital (the growth rates were 2.258% and 0.029%, respectively).

The coefficients of the degree of risk protection for the period from January 1, 2010 to February 1, 2010 generally showed rather negative results. The peculiarity of these coefficients is that a decrease in the value of coefficients K4, K5, K6, K7, K9, K10, K11 is a positive trend, and a decrease in coefficients K3, K8 is a negative trend. Therefore, we can say that the K8 coefficient has improved significantly, the growth rate of which was -63.77%. The positive dynamics of this ratio is associated both with a decrease in unprofitable loans in the Bank’s loan portfolio and with the growth of the loan portfolio.

The K10 ratio, on the contrary, increased by 15.49%, which was caused by a significant increase in non-performing loan assets.

The K3 coefficient decreased by 6.12% during the period under review. This was due to a higher growth rate of actual loan loss provisions compared to the growth rate of non-income generating components of the loan portfolio.

The K5 ratio for the reporting period increased by 5.57%. This is a very negative trend. This increase is caused by a higher growth rate of overdue loans compared to the growth rate of the loan portfolio.

Changes in the remaining coefficients of this group are also negative. All these coefficients increased during the month under review, albeit slightly.

Loan portfolio profitability ratios indicate a decrease in profitability rather than vice versa. Coefficients K12-K15 did not show positive dynamics, which, in principle, could be considered a negative sign. But on the other hand, such changes were largely due to an increase in the volume of the bank’s loan portfolio, which can undoubtedly be considered a good trend.

The K16 coefficient for the period from January 1, 2010 to February 1, 2010 decreased by 12.82%. This was caused by the high growth rate of the bank's assets.

The K17 coefficient for the period under review increased from 1.4160348 to 1.4404712 (growth rate of 1.73%).

Coefficient K18 - Standard for the maximum amount of risk per borrower or group of related borrowers. A value of ≤ 25% is considered acceptable for this coefficient. Over the period under review, this ratio decreased from 18.6% to 17.75%.

Coefficient K19 - 5.1. The standard for the maximum amount of large credit risks (N7) regulates (limites) the total amount of large credit risks of the bank and determines the maximum ratio of the total amount of large credit risks and the amount of the bank’s own funds (capital). A value of ≤ 800% is considered acceptable for this ratio. During the reporting period, this ratio increased from 111.100% to 123.9800% (growth rate of 11.59%).

In general, summarizing the data from the structural and qualitative analysis, we can say that the Bank’s loan portfolio is of fairly good quality. Thanks to its conservative lending policy towards individuals, the Bank manages to keep the share of overdue loans at a very low level.

And thanks to its large resource base, the Bank manages to offer low interest rates on loans while being able to offer to corporative clients almost unlimited loan amounts.

Although, of course, one cannot help but admit that at the end of the period under review, the quality indicators of the loan portfolio as a whole worsened. And if negative dynamics continue in the future, this could lead to unpleasant consequences for the Bank.

Conclusion

To summarize, credit policy reflects the bank's strategy and tactics in the field of lending. It determines the order of work at all stages of the credit process: from accepting a loan application to repaying the loan and closing the loan case. Its development should be based on a theoretically justified structure of optimal credit policy. It is also important to emphasize that credit policy is the basis for risk management in the bank’s activities, therefore it is necessary to pay special attention to monitoring risks at the stage of credit control.

3 Problems of formation and management of a bank’s loan portfolio and ways to solve them

3.1. Problems of formation and quality management of bank loan portfolios

The development of credit operations requires improving the quality of credit management in order to limit credit risk. An important element is improving the approaches of credit institutions to building an effective system for managing loans and banking risks.

A study of the activities of credit institutions shows that, in general, banks have created a basis for managing the quality of the loan portfolio: strategies in the field of lending have been determined, within the framework of which structures for managing the credit process have been formed; lending mechanisms and methods for assessing loan quality have been developed; management levels are delineated, tasks and powers are defined for each level; available Information Support, personnel, security systems; systems have been created internal control and risk assessments.

However, as practice shows, the presence of a bank's credit policy, regulations and procedures for assessing the quality of assets, and organizing the lending process do not guarantee a high level of loan quality management. The criteria for assessing the effectiveness of loan portfolio management are the results of their application by banks in practice.

In general, the current loan portfolio quality management systems in banks are characterized by the following shortcomings:

Unsystematic formation of the loan portfolio;

Poor awareness among bank employees involved in credit process strategy and lending goals developed by the bank;

Lack of practical experience among bank managers in organizing a systematic approach to managing the quality of the loan portfolio;

Poor development by banks of the principles and mechanisms for managing the quality of the loan portfolio; conservatism of loan portfolio analysis;

Poor development of management information systems; poor development of loan portfolio management methods;

Mistakes made by management and employees when working with the loan portfolio and assessing the quality of loans;

Unclear division of powers between bank loan officers;

Disadvantages in the organization of the internal control system.

In Russian practice, the process of managing the quality of a loan portfolio is not clearly regulated by the regulatory documents of the Bank of Russia, which may be due to the impossibility of developing one standard model for building loan management systems and assessing loan quality for all banks and types of loan debt.

In addition, as part of banks’ assessment of loan quality, there is no clear framework for analyzing the borrower’s financial situation, leaving credit institutions the right to independently select and use criteria and indicators for assessing the financial condition of borrowers.

On the one hand, this can be explained by the fact that when analyzing the financial situation of the borrower normative document It is impossible to determine the entire set of possible factors that may affect the amount of risk on a loan and their significance. Moving away from formal assessments, the Bank of Russia has identified only the general approaches required for use by banks, thus giving them the opportunity to take into account in practice the specific features of borrowers’ activities.

At the same time, banks need to understand that indicators for assessing the quality of loans based on an assessment of the financial situation of borrowers cannot be common for all types of loans and categories of borrowers. The assessment of the borrower's financial position is influenced by various factors of its activities.

On the other hand, due to the lack of a standardized approach to assessing the borrower’s creditworthiness, banks use a set of indicators of varying quantity and quality, which in some credit institutions negatively affects the completeness and reliability of the assessment of the borrower’s financial position (usually in order to improve financial performance indicators). position and overestimation of the quality of the loan portfolio).

Also, a serious problem hindering the development of lending processes has become the “going into the shadows” of a considerable number of small enterprises, which does not allow an objective assessment of the results of their activities. Small enterprises that “go into the shadows” such indicators as revenue, wage fund, payment for rent of premises, amounts of payments to suppliers, amounts of transactions that are not reflected in the reporting. Moreover, the smaller the size of the business portfolio at the stage of its formation, the higher the share of shadow turnover.

3.2 Ways to improve the technology of forming a loan portfolio and its quality

Credit organizations In order to build an effective system for managing the quality of the loan portfolio, it is necessary to ensure the implementation of a set of measures, in particular:

Formation of a loan portfolio in accordance with the chosen lending strategy, periodically adjusted to the market situation, as well as meeting the optimal indicators of credit risk, liquidity and profitability;

Conducting the selection of qualified personnel who will perform their functions under the guidance of experienced managers with a clear motivation for work;

Assigning responsibility to the bank's management for the formation of a credit culture in the bank that allows it to achieve its goals;

Development of a clear mechanism for market research, sales management, personnel training, identification of potential clients and analysis of their lending prospects;

Carrying out constant monitoring of credit assets, taking into account the relative instability of the loan portfolio, first of all, with a view to identifying deteriorating loans and rejecting them (a loan causing concern must be identified before it becomes problematic - in order to make a timely decision on maintaining or terminating the credit relationship);

Achieving sustainable profitability by regulating the concentration of loans and defining target lending indicators, such as, for example, the maximum level of the volume of problem loans from the total volume of current loans; maximum volume of loans with overdue payments (broken down by overdue period); the maximum volume of loans on which interest is not paid; the maximum amount of losses from writing off problem loans.

Conclusion

Having analyzed the above information, we can conclude that To The quality of loan portfolio management depends on the quality of the bank’s information system management, helping bank management make timely and effective decisions.

Conclusion

Currently, Russian banks have abandoned the current practice of lending against an aggregate object, as well as the previously used methods of lending by balance and by turnover. Although in the future these lending methods, of course, can be used, but only as a special case, used in individual situations only when the bank sees a need for it.

In most cases, banks in the modern situation are guided by the use of a method of providing credit resources based on economic factors and allowing to combine, first of all, the interests of banks as commercial entities, and secondly, the interests of their clients and National economy generally.

In the future, the characteristic features of the organization of the system commercial lending banks will be:

1. Focus on economic (qualitative) rather than technical (quantitative) criteria when deciding on the provision of loans, and ultimately on the needs of socio-economic development of society, which will increasingly be a single criterion for all banking institutions countries.

In practice, this will mean that the costs of enterprises for the production and sale of only those products for which there is a real need in society are credited, and their quality characteristics meet future requirements and current international standards. At the same time, it is important that possible difficulties in its implementation are not due to insufficiently high quality, but to the temporary lack of funds from the consumer.

Similarly, if we are talking about long-term lending, then only that investment activities, which best meets the needs of social progress and in the foreseeable future can bring a tangible effect in terms of meeting the needs of society and its individual members.

A typical example of the effectiveness of such an orientation (primarily to meet the needs of society) is the post-war experience of Japan and Germany, where the largest industrial companies and banks, when determining the main directions of their activities, put at the forefront not purely commercial characteristics, but the social significance of this or that type of activity. activities, nevertheless linking the satisfaction of these social needs with benefit for themselves. The demand for it both from the population and from enterprises and organizations serves as an indicator of social needs for a particular type of product. The quantitative expression of these characteristics is found in the number of applications for the production of certain types of goods and services from legal entities, concluded business contracts, etc.

An important characteristic of the size of demand in market conditions is the dynamics of prices: their rapid growth, ceteris paribus, indicates an increase in demand, a fall indicates its reduction. Similarly, the role of an indicator of changed needs (all other things being equal) can be the stock price of a particular company, which is sensitive to changing needs of society for the goods and services it produces and reflects, to a certain extent, the level of profitability of the companies.

Only when focusing on demand, on the needs of the end consumer when lending those types economic activity, which are associated with the production of products that are in demand, lending corresponds to the interests of society, and not of individual enterprises. And only in this case will the interests of the economy as a whole and banks as independent self-supporting enterprises in the conditions of commercial banking be combined, which will serve as a guarantee of the return of funds provided, ensure the future solvency of the client and obtain sustainable banking profits.

2. As a result of interregional competition and deregulation, financial services and products become uniform throughout the country. And as a consequence of this, competition has increased significantly both between banks and other credit institutions, and between banks. Increased competition leads to a reduction in bank profits.

In order to gain a foothold in traditional markets and conquer new ones, banks are forced to constantly liberalize their credit policies, which is reflected in an increase in the risks that they must take on. The increase in aggregate credit risks, for its part, also has a negative impact on the size of banking profits.

To overcome uncertainty and reduce risks, banks will increasingly resort to developing both long-term and medium- and short-term marketing strategies, focusing on controlling bank costs, reducing overhead costs, wages, and accelerating the introduction of new technologies to automate banking transactions.

3. With the advent of non-state banking institutions in the country, commercial banks organized in the form of mutual partnerships and joint-stock companies operating on commercial principles, marked the beginning of a different model for organizing the credit business, the distinctive feature of which is the organization of the credit business within the framework and on the basis of resources attracted by banks in the form of deposits.

This, in principle, excludes the possibility of unlimited provision of loans, as was practiced by state specialized banks, including on a free basis, to cover financial breakthroughs and mismanagement. The organization of credit business on a commercial basis led to the development of different approaches to lending methods and criteria, and a revision of traditional settings.

The goal of the bank's activities in the field of lending is to increase the quality and high-yield loan portfolio. To do this, we can suggest the following areas in the field of lending:

Ensuring the transition to long-term cooperation for each major client;

Maintaining and increasing lending volumes;

Attracting new large clients in the region for credit services, taking into account the specifics money turnover clients and settlements for loan servicing costs;

A significant increase in the number of clients and sales volumes of banking products and services in the field of lending to medium-sized businesses;

Intensifying support for small businesses, expanding clientele and volumes of operations;

Improving the quality of banking services and the speed of transactions for lending to individuals;

Improving the methods of credit work with the existing circle of clients;

Further development of overdraft lending.

Bibliography:

1 Civil Code of the Russian Federation, part one of November 30, 1994 No. 52-FZ, adopted by the State Duma of the Federal Assembly of the Russian Federation on October 21, 1994.

2 Federal Law of February 3, 1996 No. 17-FZ “On Banks and Banking Activities”.

3 Batrakova P. G. Economic analysis activities of a commercial bank, [Text] -M.: Logos. 2010.

4 Menyailo G.V. Essence and classification of the loan portfolio of a commercial bank, edition 2, [Text] - Vestnik VSU. Series: economics and management. -- 2010.

5 Pashkov A.I. Assessing the quality of the loan portfolio, edition 2, [Text] -2010.

6 Pashkov A.I. Assessing the quality of the loan portfolio Accounting and banks, edition 4, [Text] - 2012.

7 Sabirov M. A. Contents of managing the loan portfolio of a commercial bank Auditor, [Text] - 2012.

8 [Electronic resource//Loan portfolio management. Assessment of the quality of the loan portfolio//http://studopedia.ru].

9 [Electronic resource//Problems of formation and management of a credit portfolio//http://xppx.org/business-machine].

10 [Electronic resource//Normative and legal regulation of the lending process in the Russian Federation//http://www.nextbanking.ru].

Appendix 1. General lending scheme

1. Conclusion of a gold purchase and sale agreement to the Bank.

2. Conclusion of a pledge agreement for the right to claim proceeds from the sale of gold.

3. Conclusion of a pledge agreement for a controlling stake in OJSC Priisk Zolotoy.

4. Conclusion of a guarantee agreement with the Regional Administration.

5. Conclusion of a tripartite agreement on direct debiting of funds from the bank account of the Regional Administration.

6. Conclusion of an agreement on the processing of gold sand.

7. Conclusion of an agreement on the delivery of refined gold bullion to Spetsvyaz Bank.

8. Conclusion of a loan agreement between the Bank and the Borrower.

http://www.allbest.ru/

Appendix 2. Loan application form

APPLICATION FOR A LOAN

1. Name of the legal entity: Potapov Nikita Sergeevich______
__________________________________________________________________
2. Postal address: g. Orel, st. Firefighter, 15_______________________
__________________________________________________________________
__________________________________________________________________
3. Work telephone numbers: __ 23-56-88 _____________________________________
___________________________________ Fax machine: __ 48- 76- 84 ________________
4. Amount of required loan: _1,000,000=(One million) rubles______
__________________________________________________________________
__________________________________________________________________
5. Duration for which the loan is required _ 5 years ________________________
6. Special purpose credit: n purchase of an apartment ___________________
__________________________________________________________________
__________________________________________________________________
7. Provided security (collateral, bank guarantee,
surety): __Apartment deposit in the amount of 2,000,000=(Two million) rubles______________________________________________________________
__________________________________________________________________
8. Position, full name. representative of a legal entity, from
which received information:chief accountant Prokhorov Andrey Vladimirovich__________________________________
________________________________________________________________
9. Other information: __________________________________________
__________________________________________________________________
__________________________________________________________________

Head /_ Kuzmina __/ _ Kuzmina N. A. _______

Chief Accountant /_ Grishaeva _/ _ Grishaeva V. A.______

Source: [electronic resource]. Access mode. - http://www.allbest.ru/

Appendix 3. Structure of Sberbank's loan portfolio for 2014

Million rub.		Ud. Weight, %		Ud. Weight, %
Loans to individuals, total	2 528 561	100,00%	1777285	100,00%
Housing loans, total	1 000 186	39,6%	762 161	42.9%
Including mortgage loans	740 510	29.3%	540 654	30.4%
Car loans	102 001	4.0%	82 152	4.6%
Others consumer loans	1 426 374	56,4%	932 971	52,5%

Source: [electronic resource]. Access mode.- http://www.allbest.ru/

Appendix 4. Stages of formation of an optimal loan portfolio

Stage	Characteristic
analysis of factors affecting the demand and supply of credit	At the first stage the analysis is carried out by the bank's analytical services, taking into account the regional markets in which the bank operates. It is desirable that this work become a permanent component in the process of improving the loan portfolio, as this will allow the bank to timely recognize changes in the banking environment and take measures to reduce credit risk and increase lending profitability
formation of the credit potential of a commercial bank	Second stage of formation the optimal loan portfolio is characterized by determining the structure of the bank’s credit potential by sources of funds and their maturity.
ensuring compliance of the structure of credit potential and issued loans	Next, third, stage formation of an optimal loan portfolio analyzes the balance of credit potential and loan portfolio. As a rule, Russian banks face a lack of medium- and long-term lending potential.
analysis of issued loans based on various criteria	On fourth stageThe analysis of issued loans takes place based on various characteristics. Such indicators can include the loan repayment period, the nature of repayment, by category of borrower, by the method of charging interest, by the nature of loan collateral, by loan form, by profitability, and by risk level.
assessment of the efficiency and quality of the loan portfolio, development of measures to improve the bank’s loan portfolio	Finally, the fifth stage of forming an optimal loan portfolio assesses the efficiency and quality of the loan portfolio.

Introduction 3
1. Concept of loan portfolio 4
2. Loan portfolio management 8
3.Methods of credit portfolio management. 12
4. Methods for assessing a loan portfolio in global banking practice 15
5.Analysis of the loan portfolio of Russian banks 19
Conclusion 21
Literature 22

Introduction

All existing types of businesses make money with a certain amount of risk. In this regard, banks are no different from them, however, success is achieved only when the risks that banks take are thoughtful and within certain limits. In the context of the transition to a market economy in the banking sector, the importance of correct assessment of the risk that the bank assumes when carrying out various operations increases.
A bank's lending activity is one of the fundamental criteria that distinguishes it from non-banking institutions. Lending operations are the most profitable item in the banking business. This source generates the bulk of net profit, which is transferred to reserve funds and used to pay dividends to the bank's shareholders. At the same time, non-repayment of loans, especially large ones, can lead the bank to bankruptcy, and due to its position in the economy, to a number of bankruptcies of related enterprises, banks and individuals. Therefore, credit risks are the main problem of a bank, and their management is a necessary part of the strategy and tactics of survival and development of any commercial bank.
In connection with the development of market relations, business activities in our country have to be carried out in conditions of increasing uncertainty of the situation and variability of the economic environment. This means that there is ambiguity and uncertainty in obtaining the expected final result, and consequently, the risk increases, that is, the danger of failure, unforeseen losses. That is why the topic of the thesis “Credit risks and ways to reduce them” is currently extremely relevant.

The concept of a loan portfolio

The concept of a bank's loan portfolio is interpreted ambiguously in the economic literature. Some authors interpret the loan portfolio very broadly, referring to it all the financial assets and even liabilities of the bank, others associate the concept under consideration only with the bank’s lending operations, while others emphasize that the loan portfolio is not a simple set of elements, but a classified set.
The regulatory documents of the Bank of Russia, regulating certain aspects of loan portfolio management, define its structure, from which it follows that it includes not only the loan segment, but also various other requirements of the bank of a credit nature:
placed deposits, interbank loans, claims for receipt (return) of debt securities, shares and bills, discounted bills, factoring, claims for rights acquired in a transaction, for mortgages purchased on the secondary market, for transactions of sale (purchase) of assets with deferred payment ( deliveries), for paid letters of credit, for financial lease (leasing) transactions, for the return of funds if the purchased securities and other financial assets are unquoted or not traded on the organized market.
This expanded content of the totality of elements that form the loan portfolio is explained by the fact that such categories as deposit, interbank loan, factoring, guarantees, leasing, securities have similar essential characteristics associated with the return movement of value and the absence of a change of owner. The differences lie in the content of the object of relationship and the form of movement of value.
The essence of a bank's loan portfolio can be considered at the categorical and applied levels. In the first aspect, the loan portfolio is the relationship between the bank and its counterparties regarding the return movement of value, which takes the form of credit requirements. In the second aspect, the loan portfolio is a collection of bank assets in the form of loans, discounted bills, interbank loans, deposits and other credit-related claims, classified into quality groups based on certain criteria.
The concept of loan portfolio quality and criteria for its assessment. Quality- this is: a property or accessory, everything that constitutes the essence of a person or thing; a set of essential signs, properties, features that distinguish an object or phenomenon from others and give it certainty; this or that property, a sign that determines the dignity of something.
Consequently, the quality of a phenomenon should show its difference from other phenomena and determine its dignity.
The qualitative difference between the loan portfolio and other portfolios of a commercial bank lies in such essential properties of the loan and credit categories as the return movement of value between the participants in the relationship, as well as the monetary nature of the object of the relationship.
The set of types of operations and money market instruments used, forming a loan portfolio, has features determined by the nature and purpose of the bank’s activities in financial market. It is known that loan transactions and other credit transactions are characterized by high risk. At the same time, they must meet the goal of the bank’s activities - obtaining maximum profit with an acceptable level of liquidity. This leads to such properties of the loan portfolio as credit risk, profitability and liquidity. They also meet the criteria for assessing the advantages and disadvantages of a specific bank loan portfolio, i.e. criteria for assessing its quality. The quality of a loan portfolio can be understood as a property of its structure that has the ability to provide the maximum level of profitability at an acceptable level of credit risk and balance sheet liquidity.
Let's consider the content of individual criteria for assessing the quality of the loan portfolio.
Degree of credit risk. Credit risk associated with a loan portfolio is the risk of losses that arise as a result of default by a lender or counterparty, which is cumulative in nature. Assessing the degree of risk of a loan portfolio has the following features. Firstly, the total risk depends:
- on the degree of credit risk of individual segments of the portfolio, the assessment methods of which have both common features and features associated with the specifics of the segment;
- diversification of the structure of the loan portfolio and its individual segments.
Secondly, to assess the degree of credit risk a system of indicators must be applied that takes into account many aspects that must be taken into account.
Profitability level of the loan portfolio. Elements of the loan portfolio can be divided into two groups: those who bring and those who do not income assets. The last group includes interest-free loans, loans with frozen interest and long overdue interest payments. IN foreign practice In case of long-term overdue debt, the practice is to refuse to accrue interest, since the main thing is to repay the principal debt. In Russian practice, mandatory interest accrual is regulated. The level of profitability of the loan portfolio is determined not only by the level of interest rates on loans provided, but also by the timely payment of interest and the amount of principal.
Profitability the loan portfolio has a lower and an upper limit. Lower the limit is determined by the cost of carrying out credit operations (personnel costs, maintaining loan accounts, etc.) plus the interest payable on the resources invested in this portfolio. The upper limit is the level of sufficient margin. The calculation of this indicator follows from the main purpose of the margin - covering the costs of maintaining the bank.
Liquidity level loan portfolio. Since the level of liquidity of a bank is determined by the quality of its assets and, above all, the quality of the loan portfolio, it is very important that the loans provided by the bank are repaid within the terms established by the agreements or the bank has the opportunity to sell loans or part of them, due to their quality and profitability. The higher the share of loans classified into the best groups, the higher the bank's liquidity.
The following arguments can be given in favor of using the proposed criteria for assessing the quality of the loan portfolio (degree of credit risk, level of profitability and liquidity). The low risk of elements of a loan portfolio does not mean its high quality: loans of the first quality category, which are provided to first-class borrowers at low interest rates, cannot generate high income. The high liquidity inherent in short-term credit assets also brings low interest income.

2. Loan portfolio management

The formation and management of a loan portfolio is one of the fundamental aspects of the bank’s activities. An optimal, high-quality loan portfolio affects the bank’s liquidity and its reliability. The reliability of the bank is important for many - for shareholders, enterprises, the population who are depositors and use the bank's services. The loss of deposits affects numerous savings of depositors and the capital of many economic entities. Financial imbalance among banks reduces overall confidence in the state’s credit system, and this is also felt in other sectors of the economy.
To form an optimal loan portfolio, it is important for a bank to develop an appropriate credit policy - to correctly select market segments and determine the structure of activities.
Much attention should be paid to the quality of the loan portfolio. A poor-quality loan portfolio, unjustified loan violations, and the issuance of loans to unreliable borrowers can cause financial imbalance in banks. A bank that issues defaulting loans wastes credit resources that could be used to stimulate the accumulation of real capital and contribute to the economic development of the bank.
In managing a loan portfolio, changing the system for managing the maturities of assets and liabilities and, consequently, the difference in interest rates and, ultimately, profitability is of great importance. Each resource source has its own unique characteristics, variability, and reserve requirements. The approach to their management is the method of conversion of financial resources, which considers each source of funds individually.
Management of a bank's loan portfolio is an important element of its credit policy.
The bank's strategy and tactics in the field of obtaining and providing loans constitute the essence of its credit policy. Each bank forms its own credit policy, taking into account political, economic, organizational and other factors. When formulating its credit policy, the bank proceeds from the fact that lending operations generate the bulk of its profits. Having analyzed the document, which presents the main elements of the banks’ credit policy developed by the US Federal Deposit Insurance Corporation, we note that the most important elements of the bank’s credit policy are related to the formation and management of the loan portfolio, in particular:
- goals on the basis of which the bank’s loan portfolio is determined;
- description of the policy and practice of setting interest rates, loan fees and terms of their repayment;
- a description of the standards by which the quality of all loans is determined;
- instructions regarding the maximum credit limit;
- description of the region, industry, sphere or sector of the economy served by the bank, in which the bulk of credit investments should be made;
- characteristics of the diagnosis of problem loans, their analysis and ways out of emerging difficulties.
Among the factors influencing the formation of a bank’s loan portfolio are the specifics of the banking services market. Each bank must take into account the need for borrowed funds main clients of the selected sector of the economy. In the process of developing credit policy, banks determine priorities when forming a loan portfolio, considering its diversification from the standpoint of determining the optimal credit policy. It can be divided into types: policy on lending to legal entities and policy on lending to individuals, etc.
Banks that are not part of the large group specialize in providing loans to small trading and commercial and industrial companies.
Also, the documents disclosing the content of the credit policy of banks characterize those types of loans, the provision of which is prohibited or extremely undesirable (borrowers whose solvency and reliability are in doubt, who have not provided a complete list of documents, etc.).
A clear and detailed description of the credit policy is important for any bank. It reveals the content of all lending procedures and the responsibilities of bank employees associated with these procedures. Compliance with the provisions of the credit policy allows the bank to form a loan portfolio that helps achieve the goals set in banking activities. These goals are to ensure the profitability of the bank, control over risk management, and compliance with the requirements of banking laws.
In any bank, overall responsibility for loans rests with the board of directors. He develops the bank's credit policy, which is formulated in a special document with a variety of names. For example, in the USA this document is called a memorandum of credit policy. The most important element of a bank's credit policy is loan portfolio management. Credit policy should cover the composition of the loan portfolio and control over it as a whole, and also establish standards for making specific credit decisions. In addition to the general credit policy, the bank board should develop an independent internal credit audit program and asset quality assessment, as well as methods for monitoring the adequacy of loan loss provisions.

Methods of credit portfolio management.

The total risk of a loan portfolio depends on the level of riskiness of the loans for which it was formed, and therefore, to determine portfolio risk, the risk of all its components should be analyzed.

Credit risk management methods are divided into two groups:
methods for managing credit risk at the individual loan level;

methods for managing credit risk at the level of the bank's loan portfolio.

Individual loan risk management methods include:

analysis of the borrower's creditworthiness;

loan analysis and assessment;

loan structuring; documenting credit transactions;

control over the loan provided and the condition of the collateral.

The peculiarity of the listed methods is the need for their sequential application, since at the same time they are stages of the lending process. If at each stage the loan officer is tasked with minimizing credit risk, then it is legitimate to consider the stages of the lending process as methods for managing the risk of an individual loan. Methods for managing the risk of a bank's loan portfolio:

creation of reserves to compensate for losses on credit operations of commercial banks;

Diversification method consists in distributing the loan portfolio among a wide range of borrowers who differ from each other both in characteristics (amount of capital, form of ownership) and in terms of activity (sector of the economy, geographical region). There are three types of diversification - industry, geographic and portfolio.
Limitation, as a method of managing credit risk, is to establish the maximum permissible size of loans provided, which allows limiting the risk. By setting lending limits, banks manage to avoid critical losses due to the thoughtless concentration of any type of risk, as well as diversify their loan portfolio and ensure stable income.
Creating a reserve To compensate for possible losses on credit operations of commercial banks, a method of managing credit risk is to accumulate part of the funds, which are subsequently used to compensate for non-repaid loans. On the one hand, the reserve for credit risks serves to protect depositors, creditors and shareholders of the bank, and on the other hand, reserves increase the reliability and stability of the banking system as a whole.
This approach is based on the principle of prudence, according to which bank loan portfolios are assessed at the reporting date according to net worth, i.e. taking into account possible losses on credit transactions. To cover these losses, it is planned to create a special reserve for transferring part of the bank's funds to separate accounting accounts, from which, in the event of non-repayment of the loan, the corresponding amount is written off.
Securitization- this is the sale of bank assets through their transformation into securities, which are subsequently placed on the market. Securitization is mainly applied to bank loans, allowing banks to transfer credit risk to other market participants - investors who buy securities. In addition, through securitization, a bank can transfer the risk of changes in interest rates and the risk of early repayment of a loan.
The securitization process allows the bank's on-balance sheet assets to be moved off-balance sheet, i.e. is one of the types of off-balance sheet activities of the bank.

4. Methods for assessing a loan portfolio in global banking practice

The loan portfolio analysis system includes the following elements:
1. Assessing the quality of loans that make up the loan portfolio.
2. Determining the portfolio structure based on loan quality and assessing this structure based on studying its dynamics.
3. Determining the sufficient amount of reserves to cover loan losses based on the structure of the loan portfolio.
In global banking practice, various systems for assessing the quality of loans are used.
Let's consider the number system.

Rating	Classification	Signs
0	Unclassified loans	The loan assessment has not been completed or a reassessment of loan quality is required.
1	High quality loans (Proym)	First-class borrower in terms of creditworthiness. Repayment of debt in full and on time in the past. Powerful cash flow
2	. First class collateral.	Attractive loan characteristics for the bank, i.e. purpose, term and procedure for repayment of the loan.
3	High quality loans	A good level of creditworthiness, for example, not lower than class 2. A sufficient inflow of funds to repay the loan. Good credit history. Solid deposit. Loan characteristics that are attractive to the bank.
4	Satisfactory	Acceptable financial position of the client (not lower than class 3). Good debt repayment in the past (rare short-term delinquency with the bank). Sufficient collateral.
5	Characteristics of the loan: a revolving loan (which does not have a repayment schedule in installments and the entire debt is repaid at once) or a revolving loan (a working capital loan that is provided within the credit line as the loan is needed; as the debt is reduced and the credit line is released, the loan is issued resumes).	Repayment of the loan is doubtful. An additional agreement on the procedure for repaying the debt is required.
6	Losses	Principal and interest are not repaid

In addition to the number system for assessing the loan portfolio, there is also a point system:
Purpose and amount of debt.
1. The purpose is reasonable and the amount is fully justified - 20
2. The purpose is doubtful, the amount is acceptable - 15
3. The purpose is unconvincing, the amount is problematic-8
Financial situation of the borrower.
1. Very strong current and previous financial situation. Strong and stable inflow of funds. (1st grade) - 40
2. Good financial situation. Strong influx of funds. (2nd grade).- 30
3. The borrower has recently lost a lot, the inflow of funds is weak (uncreditworthy). - 4
Pledge
1. No collateral required or extensive cash collateral provided - 30
2. Significant liquid collateral - 25
3. Sufficient collateral of acceptable liquidity - 15
4. Sufficient collateral, but limited liquidity - 12
5. Insufficient collateral of low quality - 8
6. No acceptable collateral - 2
Loan repayment term and scheme.
1. Short-term self-liquidating loan, a good secondary source of repayment - 30
2. Medium-term loan with debt repayment in installments over the loan term, strong influx of funds - 25
3. Medium-term loan, one-time repayment at the end of the term, average inflow of funds - 20
4. Long-term loan, repayable in installments, uncertainty in the influx of funds sufficient to repay the debt - 12
5. Long-term loan, no secondary sources of repayment - 5 Credit information for the borrower.
1. Excellent past relationship with the borrower - 25
2. Good credit reviews from reliable sources - 20
3. Limited reviews, but no negative information - 15
4. No reviews - 95.
5. Unfavorable reviews - 0
Relationship with the borrower.
1. There are permanent beneficial relationships - 10
2. There are mediocre or no relationships - 4
3. The bank suffers losses on its relationship with the borrower - 2
Loan price.
1. Higher than usual for a loan of this quality - 8
2. In accordance with the quality of the loan - 5
3. Below normal for this credit quality - 0
Loan quality rating based on points:
1. Best 163-140
2. High quality 139-118
3. Satisfactory 117-85
4. Limit 84-65
5. Worse than the limit 64 and below.
The scoring system allows you to determine the structure of the loan portfolio for the reporting period and compare it with previous periods and, based on this, identify a positive or negative trend.
Positive trend- growth in the share of the best loans and high quality loans.
Negative trend- growth in the share of loans at the maximum level and worse than the maximum.

5.Analysis of the loan portfolio of Russian banks

When carrying out lending operations, the bank strives not only for their volume growth, but also to improve the quality of the loan portfolio. Thus, for effective management of the loan portfolio, it is necessary to analyze it according to various quantitative and qualitative characteristics both for the bank as a whole and for its structural divisions.
Quantitative analysis involves studying the composition and structure of a bank’s loan portfolio over time (over a number of years, at the quarterly dates of the reporting year) according to a number of quantitative economic criteria, which include:
volume and structure of credit investments by type;
structure of loan investments by groups of borrowers;
loan terms;
timely repayment of loans provided;
industry affiliation;
types of currencies;
lending price (interest rate level).
Such an analysis allows us to identify preferred areas of credit investments, development trends, including those regarding loan repayment and profitability. Of great importance is the comparison of actual debt balances with predicted ones, with established lending limits, “credit ceilings,” etc. “Credit ceilings” are upper limits on the total amount of loans or their growth, established for banks (sometimes on an individual basis), or a limit on the amount or number of loans issued to one client.
The quantitative analysis is followed by an analysis of the quality of the loan portfolio. The scope of activity of the borrower and its type have different risks for certain economic conditions, therefore, types of loans, depending on the volume and purposes of lending, are assessed differently, which should be taken into account when studying the bank’s loan portfolio. For this purpose, various relative indicators are used, calculated by turnover for a certain period or by balance as of a certain date. These include, for example, the share of problem loans in the entire gross client loan portfolio; ratio of overdue debt to share capital, etc. Based on the qualitative characteristics of the loan portfolio, it is possible to assess compliance with lending principles and the degree of risk of credit operations, and the liquidity prospects of a given bank. Thus, in any bank the state of the loan portfolio must be under constant monitoring
etc.................

The bank's loan portfolio, its content and significance. Loan portfolio. Bank lending objects

Bank lending concept

Bank loan

Bank lending objects

Loan interest

Security for bank lending

conclusions

Send your good work in the knowledge base is simple. Use the form below

1. The essence and concept of a commercial bank’s loan portfolio

Conclusion

Bibliography

Similar documents

Introduction

2.4. Analysis of the bank's loan portfolio for 2012-2014.

3 Problems of formation and management of a bank’s loan portfolio and ways to solve them

3.1. Problems of formation and quality management of bank loan portfolios

3.2 Ways to improve the technology of forming a loan portfolio and its quality

Conclusion

Bibliography:

Appendix 1. General lending scheme

Appendix 2. Loan application form

Appendix 3. Structure of Sberbank's loan portfolio for 2014

Introduction

2. Loan portfolio management

4. Methods for assessing a loan portfolio in global banking practice

5.Analysis of the loan portfolio of Russian banks

We recommend other articles

The bank's loan portfolio, its content and significance. Loan portfolio. Bank lending objects

Bank lending concept

Bank loan

Bank lending objects

Loan interest

Security for bank lending

conclusions

Send your good work in the knowledge base is simple. Use the form below

1. The essence and concept of a commercial bank’s loan portfolio

Conclusion

Bibliography

Similar documents

Introduction

2.4. Analysis of the bank's loan portfolio for 2012-2014.

3 Problems of formation and management of a bank’s loan portfolio and ways to solve them

3.1. Problems of formation and quality management of bank loan portfolios

3.2 Ways to improve the technology of forming a loan portfolio and its quality

Conclusion

Bibliography:

Appendix 1. General lending scheme

Appendix 2. Loan application form

Appendix 3. Structure of Sberbank's loan portfolio for 2014

Introduction

2. Loan portfolio management

4. Methods for assessing a loan portfolio in global banking practice

5.Analysis of the loan portfolio of Russian banks

We recommend other articles

See what “05 account” is in other dictionaries

Coursework: Analysis of accounts receivable