scholarly journals Insurance as a loan agreement for managing risk in corporate lending

2021 ◽  
Vol 9 (1) ◽  
pp. 84-93
Author(s):  
Marija Đekić ◽  
Vladimir Ristanović
Keyword(s):  
Risk Management ◽  
Developing Countries ◽  
Credit Risk ◽  
Significant Role ◽  
Credit Risk Management ◽  
Methods And Techniques ◽  
The Subject ◽  
Managing Risk ◽  
Banking Operations

Credit risk management is one of the most important banking operations, both in developed and developing countries. In addition to numerous methods and techniques, banks decide to conclude special credit agreements when granting loans to economic entities. The special provisions of such an agreement provide additional assurance to the lender that it will not incur losses when borrowing funds. In these loan agreements, insurance plays a significant role, whether it is corporate or bank borrowing. In this paper, the subject of consideration is the role of insurance as a loan agreement in corporate lending primarily by banks. The aim of this paper is to describe the importance and role of insurance in the process of corporate lending, point out the benefits of the existence of provisions related to insurance in the loan agreement for both lender and borrower, and provide a brief overview of the use of insurance as a method of credit risk management, referring to the use of this type of agreement in Serbia as well.

scholarly journals Human capital and credit risk management: training is more valuable than experience

2019 ◽  
Vol 17 (1) ◽  
pp. 67-77
Author(s):  
Ghassen Bouslama ◽  
Christophe Bouteiller
Keyword(s):  
Risk Management ◽  
Human Capital ◽  
Credit Risk ◽  
Default Risk ◽  
Management Training ◽  
Credit Risk Management ◽  
Risk Monitoring ◽  
Loan Officer ◽  
Loan Officers

The aim of this article is to assess how human capital, and more specifically training and experience, helps in forecasting and monitoring credit risk. It uses a survey of a sample of loan officers in a major French mutualist bank and applies analysis of variance and correlation to determine the relationships among variables. The study of these two components of human capital in SME loan officers shows that their ability to anticipate risk depends above all on their training rather than on their experience. Some methods of anticipating risk are more important than others. Loan officers monitor their clients in similar ways, whatever the degree and nature of their experience. The findings have two important implications for credit risk management and human capital: first, both technical and regulatory training is crucial to enable loan officers to anticipate bank credit risk, second, experience, whether in banking or as a loan officer, only makes a difference in monitoring risk. These results will be useful when banks are planning recruitment, career management and resource and skills allocation. They also suggest that staff knowledge management will enable banks to use their human capital effectively to reach their own objectives with regard to risk control, and those fixed by the regulators. This work is, as far as it is known, the first to study the role of human capital in managing credit risk. The authors show that training is more important than experience in default risk anticipation, but that experience is useful in risk monitoring.

scholarly journals The Role of the Credit Risks Management in Commercial Banks

2020 ◽  
Vol 6 (6) ◽  
pp. 225-229
Author(s):  
M. Kenjaev
Keyword(s):  
Risk Management ◽  
Monetary Policy ◽  
Credit Risk ◽  
Commercial Banks ◽  
Best Practice ◽  
Credit Risk Management ◽  
Credit Risks ◽  
The Republic

The article discusses issues related to improving credit risk management in the activities of commercial banks of the Republic of Uzbekistan, as well as developed scientific proposals aimed at solving these problems. Studied further ways to improve monetary policy using the tools used in international best practice in the strategy of the President of the Republic of Uzbekistan.

scholarly journals Historical Trends and Transitions in Credit Risk Management of Chinese Commercial Banks

2018 ◽  
Vol 9 (5) ◽  
pp. 96
Author(s):  
Bhabani Shankar Nayak ◽  
Jia Xu
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Foreign Banks ◽  
Credit Risk Management ◽  
Historical Trends ◽  
Credit Management ◽  
Credit Risks ◽  
History Of ◽  
Managing Risk

The paper outlines different trends and transitions in the history of credit risk management of Chinese commercial banks. By critically reviewing different stages of credit management and its historical evolution, it helps in understanding the nature of subjective challenges faced by Chinese commercial banks to manage credit risks. It reviews post reform policies in particularly after 1978 to locate the policy transitions and trajectories of credit risk management of commercial banks in China. It helps to understand the problems and prospects of effective credit management of risks by Chinese commercial banks. It argues that Chinese commercial banks are facing greater challenges in managing risk after the entry of foreign banks to China. Therefore, it is important for the commercial banks in China to develop its own credit management mechanisms within the context of Chinese banking environment.

Development of credit risk management tools: assessment of a potential borrower (individual)

2020 ◽  
pp. 83-89
Author(s):  
А.С. Усов ◽  
Н.В. Бабина
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Economic Security ◽  
Assessment Methodology ◽  
Credit Risk Management ◽  
Management Tools ◽  
Scoring Model ◽  
Banking Business

В статье анализируется роль риск-менеджмента в современном банковском бизнесе. Особое внимание уделено процессу оценки экономической безопасности потенциального заёмщика (физического лица). Делается вывод о том, что в современных условиях требуется усовершенствование кредитными организациями модели скоринга. Для оценки качества потенциальных заемщиков предлагается разработать и применять методику рейтинговой оценки. The article analyzes the role of risk management in the modern banking business. Particular attention is paid to the process of assessing the economic security of a potential borrower (individual). The conclusion is made that in modern conditions the improvement of the scoring model by credit organizations is required. To assess the quality of potential borrowers, it is proposed to develop and apply a rating assessment methodology.

Sign in / Sign up

Export Citation Format

Share Document