Improving the bank credit risk management by means of regulation of its branch concentration

The article presents a scientific and methodical approach to the regulation of the industry concentration of credit risk of banks, based on the analysis and prediction of the dynamics of development of branches with different dominant products and technologies for their production. It is based on th...

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Veröffentlicht in:Економіка промисловості
Datum:2014
Hauptverfasser: Matyushin, O.V., Shkaeva, T.I.
Format: Artikel
Sprache:English
Veröffentlicht: Інститут економіки промисловості НАН України 2014
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Online Zugang:https://nasplib.isofts.kiev.ua/handle/123456789/64028
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Zitieren:Improving the bank credit risk management by means of regulation of its branch concentration / O.V. Matyushin, T.I. Shkaeva// Економіка промисловості. — 2014. — № 1 (65). — С. 98-106. — Бібліогр.: 20 назв. — англ.

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Digital Library of Periodicals of National Academy of Sciences of Ukraine
id nasplib_isofts_kiev_ua-123456789-64028
record_format dspace
spelling Matyushin, O.V.
Shkaeva, T.I.
2014-06-09T17:16:01Z
2014-06-09T17:16:01Z
2014
Improving the bank credit risk management by means of regulation of its branch concentration / O.V. Matyushin, T.I. Shkaeva// Економіка промисловості. — 2014. — № 1 (65). — С. 98-106. — Бібліогр.: 20 назв. — англ.
1562-109Х
https://nasplib.isofts.kiev.ua/handle/123456789/64028
336.276.2:336.717
The article presents a scientific and methodical approach to the regulation of the industry concentration of credit risk of banks, based on the analysis and prediction of the dynamics of development of branches with different dominant products and technologies for their production. It is based on the idea that the loans to branches that are at the stage of growth and show a steady positive dynamics of output and profitability of operations are considered to be the least risky. Existing approaches and models of credit risk assessment are the market ones. Their use is fully justified in the case of acceptance of the hypothesis about the effectiveness of the stock market as an indicator of sustainability of enterprises. In modern conditions, when the stock market has lost its economic function of determining the value of companies to raise their funds, in terms of institutional and technological backwardness of the stock market the possibility of using these models are very limited. The objective of this article is to ground the scientific and methodical approach to credit risk management of the bank on the basis of regulating their branch concentration and developing on this basis practical recommendations to diversify its loan portfolio, taking into account branch factors. the developed procedure of the loan portfolio formation is the basis forthe implementation of the proposed approach to the regulation of the branch concentration of bank credit risk. It includes analyzing of the existing loan portfolio and choosing of branches to form a new portfolio, building and analyzing time series of branch revenues and profitability, calculating of risk indicators for each branch based on the limits of sales revenues and profitability in the forecast period, loan portfolio optimization by minimizing the risk, taking into account branches loan limits with achieving the expected return. The economic and mathematic model of credit portfolio formation taking into consideration a branch factor is worked out. Recommendations on bank credit risks branch concentration regulation improving is offered.
Подано науково-методичний підхід до регулювання галузевої концентрації кредитних ризиків банків, що ґрунтується на аналізі динаміки та прогнозуванні розвитку галузей економіки, які відрізняються домінуючими продуктами та технологіями їх виробництва. Його основу становить ідея, згідно з якою найменш ризиковими визнаються кредити підприємствам галузей, що перебувають у стадії зростання
Представлен научно-методический подход к регулированию отраслевой концентрации кредитных рисков банков, основанный на анализе динамики и прогнозировании развития отраслей экономики, которые отличаются доминирующими продуктами и технологиями их производства. Его основу составляет идея, согласно которой наименее рисковыми признаются кредиты предприятиям отраслей, находящихся в стадии роста.
en
Інститут економіки промисловості НАН України
Економіка промисловості
Problems of development strategy and financial-economic regulation of industry
Improving the bank credit risk management by means of regulation of its branch concentration
Удосконалення управління кредитними ризиками банку на основі регулювання їх галузевої концентрації
Совершенствование управления кредитными рисками банка на основе регулирования их отраслевой концентрации
Article
published earlier
institution Digital Library of Periodicals of National Academy of Sciences of Ukraine
collection DSpace DC
title Improving the bank credit risk management by means of regulation of its branch concentration
spellingShingle Improving the bank credit risk management by means of regulation of its branch concentration
Matyushin, O.V.
Shkaeva, T.I.
Problems of development strategy and financial-economic regulation of industry
title_short Improving the bank credit risk management by means of regulation of its branch concentration
title_full Improving the bank credit risk management by means of regulation of its branch concentration
title_fullStr Improving the bank credit risk management by means of regulation of its branch concentration
title_full_unstemmed Improving the bank credit risk management by means of regulation of its branch concentration
title_sort improving the bank credit risk management by means of regulation of its branch concentration
author Matyushin, O.V.
Shkaeva, T.I.
author_facet Matyushin, O.V.
Shkaeva, T.I.
topic Problems of development strategy and financial-economic regulation of industry
topic_facet Problems of development strategy and financial-economic regulation of industry
publishDate 2014
language English
container_title Економіка промисловості
publisher Інститут економіки промисловості НАН України
format Article
title_alt Удосконалення управління кредитними ризиками банку на основі регулювання їх галузевої концентрації
Совершенствование управления кредитными рисками банка на основе регулирования их отраслевой концентрации
description The article presents a scientific and methodical approach to the regulation of the industry concentration of credit risk of banks, based on the analysis and prediction of the dynamics of development of branches with different dominant products and technologies for their production. It is based on the idea that the loans to branches that are at the stage of growth and show a steady positive dynamics of output and profitability of operations are considered to be the least risky. Existing approaches and models of credit risk assessment are the market ones. Their use is fully justified in the case of acceptance of the hypothesis about the effectiveness of the stock market as an indicator of sustainability of enterprises. In modern conditions, when the stock market has lost its economic function of determining the value of companies to raise their funds, in terms of institutional and technological backwardness of the stock market the possibility of using these models are very limited. The objective of this article is to ground the scientific and methodical approach to credit risk management of the bank on the basis of regulating their branch concentration and developing on this basis practical recommendations to diversify its loan portfolio, taking into account branch factors. the developed procedure of the loan portfolio formation is the basis forthe implementation of the proposed approach to the regulation of the branch concentration of bank credit risk. It includes analyzing of the existing loan portfolio and choosing of branches to form a new portfolio, building and analyzing time series of branch revenues and profitability, calculating of risk indicators for each branch based on the limits of sales revenues and profitability in the forecast period, loan portfolio optimization by minimizing the risk, taking into account branches loan limits with achieving the expected return. The economic and mathematic model of credit portfolio formation taking into consideration a branch factor is worked out. Recommendations on bank credit risks branch concentration regulation improving is offered. Подано науково-методичний підхід до регулювання галузевої концентрації кредитних ризиків банків, що ґрунтується на аналізі динаміки та прогнозуванні розвитку галузей економіки, які відрізняються домінуючими продуктами та технологіями їх виробництва. Його основу становить ідея, згідно з якою найменш ризиковими визнаються кредити підприємствам галузей, що перебувають у стадії зростання Представлен научно-методический подход к регулированию отраслевой концентрации кредитных рисков банков, основанный на анализе динамики и прогнозировании развития отраслей экономики, которые отличаются доминирующими продуктами и технологиями их производства. Его основу составляет идея, согласно которой наименее рисковыми признаются кредиты предприятиям отраслей, находящихся в стадии роста.
issn 1562-109Х
url https://nasplib.isofts.kiev.ua/handle/123456789/64028
citation_txt Improving the bank credit risk management by means of regulation of its branch concentration / O.V. Matyushin, T.I. Shkaeva// Економіка промисловості. — 2014. — № 1 (65). — С. 98-106. — Бібліогр.: 20 назв. — англ.
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AT shkaevati improvingthebankcreditriskmanagementbymeansofregulationofitsbranchconcentration
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AT shkaevati udoskonalennâupravlínnâkreditnimirizikamibankunaosnovíregulûvannâíhgaluzevoíkoncentracíí
AT matyushinov soveršenstvovanieupravleniâkreditnymiriskamibankanaosnoveregulirovaniâihotraslevoikoncentracii
AT shkaevati soveršenstvovanieupravleniâkreditnymiriskamibankanaosnoveregulirovaniâihotraslevoikoncentracii
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