| Autor: Aneta Wszelaki | 503 |
Strony: 503-512
pełen tekst
MANAGEMENT OF THE CREDIT PORTFOLIO IN A COMMERCIAL BANK WITH COMPULSORY CREATION OF TARGET RESERVES
Summary
The article presents the problem of management of credit receivables in the situation when banks are compelled to generate connected with them compulsory target provisions. The banks may shape to a certain degree their credit portfolio through implementation of a credit policy but its operation depends upon and is conditioned by many factors. Target reserves belong to external standards whose observance is imposed on banks by the order of the minister of finance relating to setting up of provisions for risks. The target reserves affect financial results, as they increase costs and the financial law is in this case unfavourable for banks. The banks which manage credit portfolio may, for example, – in order to control the volume of target reserves – reduce crediting of high risk ventures or tighten the criteria for assessment of credit standing.
pełen tekstMANAGEMENT OF THE CREDIT PORTFOLIO IN A COMMERCIAL BANK WITH COMPULSORY CREATION OF TARGET RESERVES
Summary
The article presents the problem of management of credit receivables in the situation when banks are compelled to generate connected with them compulsory target provisions. The banks may shape to a certain degree their credit portfolio through implementation of a credit policy but its operation depends upon and is conditioned by many factors. Target reserves belong to external standards whose observance is imposed on banks by the order of the minister of finance relating to setting up of provisions for risks. The target reserves affect financial results, as they increase costs and the financial law is in this case unfavourable for banks. The banks which manage credit portfolio may, for example, – in order to control the volume of target reserves – reduce crediting of high risk ventures or tighten the criteria for assessment of credit standing.