Bissenova R.A., master of
Economics and Business,
Zhaksylykova
Zh.T., senior lecturer of the department
"Economics and Management".
Kyzylorda State
University named after Korkyt Ata, Kazakhstan
Banking risks
Formation of the market and market infrastructure,
establishing new mechanisms of economic relations and the development of
entrepreneurship and competition, increase the republic's sovereignty requires
the development of the theory of economic risks, methods of assessment and
management at all levels of management:
- At the country level;
- at the republican level;
- At the regional level;
- At local level;
- At the level of each business unit, regardless of the type and form
of ownership.
The main role in solving these problems belongs banking system. This is
explained by the increasing role of credit relations and banks amid the
instability of the economy and the development of market relations. Banks are
the sole owner of the necessary information about the financial condition of
enterprises and organizations, commodity market conditions, loan and foreign
exchange markets, the region's economic situation.
Leading principle in the work of commercial banks in the conditions of
market relations is the aspiration to reception of greater profits. It is limited
to the possibility of incurring losses.
In any economic activity always exists risk of financial loss arising
from the specifics of certain business operations. The risk of such losses
represents the financial risks.
Risk - is a situational characteristic of activity of any manufacturer,
including the bank, showing the uncertainty of its outcome and the possible
adverse consequences in case of failure.
Risk expresses the probability of obtaining such undesirable results as
profit loss and the occurrence of losses due to defaults on loans, reducing its
resource base, the implementation of payments
by the balance operations .
At the same time than the lower the level of risk, the lower the
probability of obtaining a high profit. Therefore, on the one hand, every
manufacturer tries to minimize the risk and from of several alternative
solutions always chooses where the risk is minimal: on the other hand, it is
necessary to choose the optimal ratio of the level of risk and degree of
business activity, profitability.
The level of risk increases if:
- Problems occur suddenly and contrary to expectations;
- Management is unable to take the necessary and urgent measures that
can lead to financial damage (deterioration of the ability to obtain necessary
and additional revenue);
- The existing procedures of the bank or the imperfection of the
legislation prevents the adoption of some of the best for the particular
situation of measures.
Are subject to risks, almost all types of banking operations. Said
elements determines that the risk is associated with the activity of a
particular person who makes a decision in a particular risk situation.
Risk is characterized by such features as contradictoriness,
alternativeness, uncertainty.
Contradictoriness is manifested in the following. On the one hand the
risk are aimed at obtaining a positive result. On the other hand, it leads to
subjectivism and ignore the objective things.
Alternativeness presupposes selection of two or more opportunities
variants, and actions. If there is no choice, there is no risk. Alternativeness
has varying degrees of difficulty.
Uncertainty - is primarily a lack of accurate information.
Distinguish two concept of risk - subjective and objective. Objective
concept comes from the fact that the risk - this is relative to what is unknown
it will come or not. Subjective concept is based on the fact that the risk - is
the selection of variants of behavior taking into account the dangers, threats
and possible consequences.
Thus, a profit is possible only if the possibility of incurring losses
(risks) are provided in advance (weighed) and err.
Therefore, to the problems of economic risks in the activity of
commercial banks should be given considerable attention. The main ones include
the development of the classification of banking risks, the main assessment and
calculation methods for economic, political and other risks of the bank, a
single borrower, group of companies, industries.
14.2. Classification of banking risks
The most important elements underlying the classification of banking
risks, are as follows:
1. the type or the kind of a commercial bank;
2. The composition of the clients;
3. The sphere of influence or the appearance of banking risks;
4. The method of calculation of risks;
5. degree of bank risk;
6. The distribution of risk over time;
7. The nature of the risk calculation;
8. the possibility of bank risk management.
On the time the risks are allocated to the retrospective, current and
prospective. Analysis of retrospective
risks, their nature and the ways of their decrease allows more accurate
prediction of current and perspective risks.
By the degree (level) banking risks can be divided into low, moderate
and complete.
In the normal course of business, banks are facing with a set of different
types of risks differing in between themselves at the place of appearance,
aggregate of internal and external factors affecting their level and,
consequently by the method of analysis and by the methods of their description.
In addition, all kinds of risks are interrelated and affect the activity of
banks.
In addition, all kinds of risks are interrelated and affect the
activity of banks. Changes one type of risk cause changes in almost all other
species. All this complicates the choice of a particular level of risk analysis
method and a decision on its optimization, leading to an in-depth analysis of a
variety of other risk factors. Therefore, the choice of a particular method of
analysis of their level, the selection of the optimal factors are very important.
Cited above classification of banking risks elements are very important
and according to principle of manifestation has its characteristics. Let us
briefly consider each element separately.
1.The type or the kind of bank risk.
Specialized, industry, universal banks have a different set of risks,
in this case, if an innovative bank, the increased risk is associated with
lending to new technologies.
Industry Bank - with the risk of enterprises of specific industries,
holding banks face risks on operations with securities.
Universal commercial banks are exposed
claimed in any risk from many types of operations, but they have a great
opportunity to cover their losses by profits from other operations.
2. The composition of the clients and the occurrence of risks. Small
and large loans in the context of borrowers
of are affected differently on the banking risks. Small borrowers more
dependent on accident in the economy or large loans to one borrower or group of
the same industry, region, countries can greatly affect the liquidity, return
bank loans.
The choice of borrowers. Determination of creditworthiness, monitoring
the financial stability of its clients is an important function in the
management of banks. Debt indicators for one (group) the borrower applies for
the bank to prudential standards established by the National Bank of the
Republic of Kazakhstan.
3. Sphere of of occurrence and impact of
banking risks. The sphere of risks is presented in three groups: risk of
countries (of country); the risk of of financial
reliability of the itself bank (capital deficiency, imbalance of liquidity,
lack of required reserves); the risk of certain types of operations - is the
risk of non-payment, is not compensation, risk of a bank guarantee.
4. According to the method of calculation of bank risks. In a market
economy, by the Central Bank (the National Bank) are designed and set liquidity
ratios for commercial banks.
Methods of calculating risk - comprehensive (in the evaluation and
prediction of the value of the bank's risk and compliance with all liquidity
ratios).
Private risk is based on the establishment of the scale of the
coefficients of risks for separate or group of banking operations.
5. The degree of weighting the risk . The degree of bank
risk is characterized by the probability of the event, leading to the loss of
bank funds for the operation and expressed as a percentage or specific
coefficients.
6. The nature of accounting operations and risks. It's a
risk on balance sheet and off-balance sheet transactions.
It's a
risk on the balance sheet and off-balance sheet operations.
7. Possibilities of banking risk management. Here, risks are
divided into open, which generally are not subject to regulation and closed -
on them introduces limitations, and they are regulated.
Thus, the bank has to be worked out
system of evaluation of all types of risks, causes of risks, and management
capabilities all the risks in totality.
Bank risks vary in features and
necessary study them from different approaches.
Risks on Arbitrary banking
operations include:
The Credit risk;
The interest risk;
The currency risk;
The Portfolio risk;
The risk of loss
of financial benefits.
The credit risk - the risk of
non-payment by borrower principal debt and interests, owed to the lender.
Interest risk - the risk of loss by
commercial banks, credit institutions, investment funds as a result of
exceeding interest rates paid by them on funds raised , over the rates on
loans.
Currency risk is the risk of foreign
exchange losses related to changes in the course of one of the foreign
currencies in relation to the other, including the national currency during the
foreign trade, credit and other currency transactions.
The risk of loss of possible
benefits - a risk of indirect financial damage as a result of
non-implementation of any event or stop business.
In addition, often talk about the
risks associated with the inability of the bank to reimburse the administrative
- economic costs.
All of these risks are interrelated. Obviously, the credit
risk may lead to liquidity risk and the bank's insolvency, as well as the risk
associated with the inability of the bank to reimburse administrative expenses.
Interest rate risk associated with the conjuncture in the market of credit
resources and acts as a factor which is independent from the bank. However, he
is able to exacerbate the credit risk and the entire risk chain, if the bank
will not adapt to changes in market interest rates.
Literature
1. Банковское дело. Под
ред. Сейткасымова Г.С. Алматы:
Каржы –каражат, 1998
2. Деятельность коммерческих банков: Учебное пособие/ Под
ред. проф., д.э.н. А.В. Калтырина
– Ростов н/Д: «Феникс», 2004. – 384 с.
3. Грюнинг Х. Ван, Брайович Братанович С. Анализ банковских рисков. Система оценки
корпоративного управления и управления финансовым риском / Пер. с англ. – М.:
Изд-во «Весь Мир», 2003.
5. Киселева И.А.
Модели банковских рисков. – М., 2001.