Mysienko Olena

Kharkiv banking institute University of banking

National bank of Ukraine

Management by credit brief-case of bank

 

Economic growing and providing the efficient conditions for development of the private sector, the improvement of social defence and welfare of population are possible only to the efficient development of crediting by bank institutions. The process of management by the credit brief-case of bank is one of the main peculiarities. A credit creates favourable terms for development of all spheres and industries of national economics of Ukraine. It is the important source of capital investments. That is why its ponderable role has been traditionally selected in restructuring of the country’s economics on the whole.

The management by a credit brief-case is the basic direction of the bank credit policy. It plays the main the role of credit relations in the economic processes of the state. For the period of transaction to the market economics, and formation the Ukrainian banking system, the special attention has been given to development and introduction of bank products and services, which inherent to the market economic process. After due consideration this problem, it has been discovered, that the main part of these products, as the point of view volumes so the point of view an assortment both, belong to the crediting operations. The specific gravity of the bank interest yields from crediting was over 60% from the lump sum of the bank profits in its activity. Crediting is the priority link of activity of the modern Ukrainian banks. The economic development depends on efficiency of realization by banks their credit functions. In this connection the researches of item concerned to the organization and improvement management by the credit brief-case of bank and conducting the investigations for development of this question have been acquired actuality and special value for Ukrainian banking system. First of all it is necessary to say a few words about the theoretical description of management by the credit brief-case of bank. It will allow more expressly finding out essence of the conducted developments. A credit concept to the brief-case has been met before in many scientific developments and researches. A “credit brief-case” is the important instrument of bank credit activity, which shows itself the aggregate of all types of credits, given by bank establishment to the targets audiences with the purpose of receipt the income as interests. The effecient management by the credit brief-case of bank is providing of its necessary qualities, which enable to have the certain level of profitability and liquidity to the bank. Forming of high-quality credit brief-case of bank has an important signification for its cost-effective work and reliability as a partner in financially-economic activity. Qualities’ estimation of the credit brief-case of bank is a difficult process sufficiently. The most widespread method of qualities’ estimation the brief-case is founded method of loans as Statute of the National bank of Ukraine «About the forming order and using of reserve on coverage of possible losses on credits operations». On this basis the following classification of credits are offered: standard; under the control; substandard; doubtful; hopeless. Management by the credit risk is the most important part in the banking activity. The credit risk characterizes the economic relations, which arise up between two contractors – the creditor and the borrower – on an occasion of the redistributing the financial assets.

On the first stage of effective management by the credit risk, a leading place has occupied its high-quality and quantitative analysis that provided diminishing of negative consequences of its origin. On the second stage, the realization of banking management by the credit risk has been carried out at two levels: at the level of every separate loan and at the level of credit brief-case on the whole. To the methods of management by the risk of separate credit we could apply: 1) analysis of borrower’s solvency; 2) analysis and credit’s estimation; 3) making reserves; 4) documenting of credits operations; 5) control after allotted credit and mortgage state. To the methods of banking management by the risk of credit brief-case could also apply: 1) diversification; 2) limiting; 3) accumulation of reserves for compensation of losses after bank credit operations; 4) securitization.

The high-quality and quantitative analysis of credit risks and effective management by them have been provided upgrading credit operations on the whole. The problem of declining credit risk in bank also substantially depends on perfect methods of management, applied by a bank, such as:

   using the modern models of estimation of the borrower’s financial state;

   at estimation of borrower’s solvency operating by not only information of the financial reporting for the last period but using the indexes, which characterize the prospect of its activity;

   developing the application of different credit types, that will allow to reduce not only degree of credit risk but also to cut down the operating bank expenses;

   improving qualities of credit providing, in particular, to limit the using of non-liquid mortgages. It will allow to reduce the fate credits’ problem and to improve qualities of credit brief-case on the whole;

   pursuing an efficient credit policy;

   conducting the efficient credit monitoring of borrowers. It will give the possibility to decrease authenticity of appearance of risk and to perfect the crediting process;

   controling a special purpose using of the given credits out, which have unjustified the high degree of risk or doubtful aims.

Each of the offered measures can be used in practical activity of bank, separately from other one, but only in united their using there is possibility of getting effect for the increase of efficient management by the credit brief-case of bank. At the end it is necessary to say that management by the credit brief-case of bank is a very important part of credit process in bank activity. So why, good credit managers have to use all their knowledges and experience to make this process more efficient.