in the course of their activities. Its appearance is caused, first of all, delayed detection of problem loans and the lack of established under these provisions, and the imperfection of credit control in banks. Increasing interest in the assessment of the credit risk associated with an increase the loan portfolio of banks decreased in profitability banking sector, prompting banks to take on high credit risks. All this has caused and the urgency of improving existing introduction of new techniques and assessments of credit risk. The main areas of regulation of credit risk is the development and implementation of measures to prevent or minimize the associated losses. Minimizing credit risk involves complex measures to reduce the probability of occurrence of events or circumstances that lead to credit losses and (or) a decrease (Limitations) of the potential credit losses. The Bank manages credit risk at the level of individual loans and on levels of credit portfolio as a whole. The source of individual credit risk is a separate specific counterparty bank - borrower, debtor, issuer of securities. Evaluation of individual credit risk assessment involves individual counterparty creditworthiness, ie, the unique ability to timely and fully pay for accepted obligations. The results of assessing the creditworthiness of the customer are the Based on the decision to grant or loan. Based on creditworthiness of the borrower's bank determines that the amount of risk it can take over. After giving workers credit loan unit should be in constant contact with the borrower with to monitor compliance with the terms of credit. Control of credit operation allows time to detect changes in the financial and legal status client and react to changing quality of the loan. The credit risk in lending is made through: - Modifying the terms of the loan agreement; - After termination (restriction) loans; - Controlling the movement of funds in the accounts of the borrower bank debit funds from the borrower; - Setting the term loan and more. Portfolio credit risk - a measure (degree) riskiness of credit portfolio (the aggregate of all credit transactions) commercial bank. He shown to reduce the value of bank assets. The source of portfolio Credit risk is the total debt to the bank for transactions which is exposed to credit risk (loan portfolio, portfolio of securities securities portfolio of receivables, etc.). The credit risk of the bank consists of the following steps: - Assessment of credit risk; - Monitoring of credit risk; - Control of credit risk; - Minimizing risk. Overall credit risk management can be seen as a set of measures to minimize costs in order to establish optimum ratio of return and risk. The purpose of this activity |