Development of methodical providing assessment of solvency and level of credit risk in commercial bank

Abstract

The reasons of improvement of methodical providing asses-sment of solvency of borrowers and level of credit risk in commercial bank reveal. Need of application by subjects of the banking sector of the professional standards (PS), including PS «Specialist in Corporate Crediting», «Pledges Specialist», «Arrears specialist», «Specialist in Risk Management», for mini-mization of credit risks and increase in efficiency of imple-mentation of credit policy is emphasized. Practice of application of methods of assessment of solvency of borrowers and level of credit risk is analyzed. The structural elements of process of a credit risk management, methods applied (or recommended for application) for improvement of quality of management of risk and also key aspects which have to be considered when developing corporate policy of risk management are considered. Special attention is paid to enforcement since July 14, 2017 of the new Provision on an order of formation by credit institutions of reserves on possible losses on loans, the loan and equated to it debt and the analysis of realization of the general algorithm of assessment of solvency and level of credit risk in the light of innovations and modern analytical methods offered by authors to expanded use (the correlation, regression, cluster analysis, etc.).