Home  Journals  Finance and Credit  11(587) - 2014 March

Improvement of the method of determination of size of the settlement reserve on possible losses according to loans taking into account influence of external factors

Available online: 15 March 2014

Subject Heading: Banking

JEL Classification: 

Pages: 15-22

The article considers presents proposals for improving the methodology for determining the magnitude of estimated provision for possible loan losses, taking into account the influence of external factors. The paper presents general methodology of definition of credit risk according to the loan. The essential factors influencing an assessment of credit risk are presented. The authors offer integrated assessment of size of a reserve taking into account a condition of separate factors for each category of quality and also the bright example of use of an offered technique in practice. They dive comparison of this offer with the traditional Russian technique which difference is expressed in the size of a formed reserve.

Keywords: reserve on possible losses according to loan, settlement size of a reserve, credit risk, category of quality, external factors

References:

1. Artem'eva S.S., Satianov N.A. Upravlenie bankovskimi riskami v usloviiakh finansovogo krizisa [Management of bank risks in conditions of financial crisis] Izvestiia Orenburgskogo gosudarstvennogo agrarnogo universiteta – News of Orenburg State Agrarian University, 2009, no. 1, pp. 115–118.
2. Federal Law «On insolvency (bankruptcy) » of 26.10.2002 № 127-FZ.
3. Position of Bank of Russia «On the order of formation by credit organizations of reserves on possible losses according to loans, on debt loan and equated to it» of 26.03.2004 № 254-P.
4. The official site of the Ministry of Civil Defense, Emergencies and Elimination of Consequences of Natural Disaster of the Russian Federation Available at: Link. (In Russ.)
5. Smulov A.M. Problemnaia zadolzhennost': poniatie, osnovnye priznaki, i mery po-vysheniia effektivnosti vozvrata problemnykh kreditov [Problem debt: concept, main signs, and measures of increase of efficiency of return of problem credits]. Finansy i kredit – Finance and credit, 2009, no. 35, pp. 2–12.

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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