Credit risks that are associated with bank retailers are very significant. They have a completely different dynamics compared to the credit risk of the investment or commercial industry.
The main difference of retail credit risk It is that it is divided into several parts, so the default of one counterparty is not so noticeable for bank liquidity. Another feature is that the bank's retail counterparties are not as dependent on each other. Commercial and loan portfolios, on the contrary, are often dependent on the concentration of risk for organizations that are economically related to certain geographic regions or industries.
The main features of retail lending
Banking institutions with a retail portfolio, which is diversified by various industries and regions, have credit risk Concentrations are significantly less than those whose retail portfolio is concentrated in a certain region or industry. In most cases, retail loan portfolios are characterized by a more pronounced trend towards large-scale diversified portfolios, rather than corporate loans.
Retail credit institutions can evaluate the percentage of loans in the portfolio for which loss or default is expected in the future. The amount of losses may be considered in the future to be considered with other costs in the process of activity of the enterprise (on the development of checks or costs for the functioning of branches).
Note 1.
In retail lending, large predictability of losses means the following: the level of predicted losses plays a significant role in the assessment of retail credit risk and is charged in the cost, which pays the counterparty. And vice versa, the risk of losses for the corporate loan portfolio is that credit losses exceed the expected level.
Also a distinctive feature of the retail loan portfolio is that customer behavior signals about the approaching default (many customers are under financial pressure and cannot carry out mandatory credit card payments). Retail banking institutions carefully follow such signals. Thanks to this, banks can take certain measures to reduce retail credit risks.
In this case, the bank can:
- change rules for use credit funds in order to reduce retail credit risk;
- change marketing strategies and the application for approval of applications in order to attract less risky counterparties;
- increase the interest for using credit funds for a specific group of clients, in relation to which there is a probability of the onset of default.
Control bodies believe that retail credit risks are very predicting, as a result of which retail banking institutions maintain a low level of capital on cover of this risk In accordance with the new Basel Agreement compared with current Basel Rules.
However, in the case of a default, banks should provide data to the controlling authorities on the probability of default and losses, as well as exposure to risk for certain differentiated portfolio segments.
Control bodies indicate that segmentation should be based on equivalent indicators and scoring models, as well as in time indicators when the operation was rejected on banking balance.
"The reverse side of the medal" of retail credit risk
In retail credit risk, there is a "reverse side of the medal", which is the danger of the fact that losses will significantly increase due to the systematic and not provided by the risk factor, which affects the behavior of most loans in the retail bank's portfolio.
The "reverse side" of risk management has several components:
- Not all retail credit products are associated with historical losses on losses that reflect the level of possible credit risk.
- Retail loan products, even well predictable, may vary under influence economic environment, Basically, if all factors deteriorate at the same time. For example, in mortgage lending, the main fear is associated with a sharp economic downturn along with high interest rates on the loan (this may lead to improved default risks and simultaneous reduction in the cost of security).
- The tendency of counterparties to the default is the complex interaction of the legislative and social systemwhich constantly undergo changes. For example, the legislative and social admissibility of individual bankruptcy is a fundamental factor, which influenced the risk of default in the 1990s in the United States.
- Operational issues affecting the creditworthiness of the client can affect the entire retail loan portfolio, since consumer loan is a semi-automatic decision-making process.
- It is difficult to determine the value of this risk because it is badly projected. Together with this banking institutions, it is necessary to make sure that retail loan portfolios are particularly susceptible to new types of risks (for example, sub-endand lending).
A profitable area of \u200b\u200bactivity can open a small uncertainty exposure and allow banking institutions to collect a sufficient amount of information so that in the future it is better to determine and predict risks.
Note 2.
The retail banking sphere faces not only with credit risk, it is the main view of the risk, but not the only one.
Other retail risks
Commercial banking services are subject not only to credit risk. Retail activities are subject to operational, market, reputational and business risks.
- Interest risk may arise from assets and liabilities when the banking institution offers specific interest rates, both for depositors and borrowers. This type of risk is transferred to the banking treasury from the retail sector. They are managed along with the regulation of assets and liabilities, as well as in parallel with the risk management of liquidity.
- Asset assessment risks are a special form of market risk, in which income from retail lending depends on the accuracy of a certain asset, a class of support or obligation. In mortgage lending, the most important risk is early repayment loan, the risk that the value of the portfolio may decrease when decreasing interest rates (customers seek to pay soon mortgage loans, reducing their cost). Assessment of retail assets, which is subject to risk of early closure, a very complex process, since they are based on those assumptions about the borrower's behavior, which is difficult to assess. An example of an example of risk assessment is to determine the residual value of the car in the field of lease (car leasing and technology). This type of risk should be managed by the Treasury of the retail bank.
- Operational risks in the bank's retail activities are managed by those structures and units in which these risks are formed. As an example, it is possible to introduce new processes that serve customer fraud, but only in cases where it is justified economically. Banks are obliged to place capital in accordance with the operational risk, both in the commercial and retail banking industry. As a result, a new industry arose, which applies many concepts (for example, operational risk at the level of the whole organization).
- Business risks are anxiety for top managers. These include the risk of business operations (reduction and increase in volume mortgage lending When changing interest rates), strategic risks (active use of Internet banking and new payment systems), as well as solutions on absorption and mergers.
- Reputational risks have important In the retail lending system. The Bank is obliged to maintain its high-level reputation, fulfilling promises, these to customers. But it should also comply with the stated reputation before the controlling authorities, since they may deprive the license bank in the event that illegal and illegal actions are noticed.
Figure 1. Other retail risks. Author24 - Student Internet Exchange
Credit risks associated with retail banking services are rather significant, but they have other dynamics compared to the credit risk of the commercial and investment banking industry. The determining characteristic of credit risks associated with retail banking services is that they are divided into small parts, so the default of one client is not so expensive by the bank.
Another basic characteristic reflects that retail clients are usually financially independent of each other. Corporate and commercial loan portfolios, on the contrary, are often associated with risk concentrations for corporations that are economically interrelated in specific geographical areas or industries.
Of course, banks with a retail portfolio, which is diversified by regions and products, have a significantly lower credit risk of concentration than those retailed portfolio of which is concentrated in a particular region or on a particular product. But in general, retail loan portfolios have a more pronounced tendency towards large and well-diversified portfolios than "heavy" portfolios of corporate loans. Retail banks, therefore, can better assess the percentage of loans in the portfolio for which in the future you can expect a default or loss. This expected loss value can be considered along with other costs in the process of the company's activities, such as costs of maintaining branches or processing checks (and not considered as a threat. financial Sustainability bank).
High predictability of credit losses in retail lending means the following: Level of expected loss trust most important role In the assessment of retail credit risk and can be taken into account in the value that the client pays. And vice versa, risk of losses for most corporate loan portfolios And mostly lies in the fact that credit losses will significantly exceed the expected level.
Another key characteristic of many retail portfolios is that often about increasing the probability of default in advance signals the change in customer behavior, such as those who are under financial pressure and cannot make minimal payments on the credit card. For such warning signals, retail banks (and regulatory authorities) are closely followed. This allows banks to take certain actions to reduce credit risk. The bank can:
■ Change money management rules that are loan to existing customers to reduce risk:
■ Change marketing strategies and customer applications for attracting less risky customers;
■ Increase interest rates for a specific type of clients in respect of which there is a high probability of default.
Conversely, a corporate loan portfolio is something like a supertanker. To a certain point, it becomes clear that something is wrong, but it's too late to change something.
Regulatory authorities make an idea that the credit risk of the retail banking industry is relatively predicting (although a number of important exceptions are considered in block 9-2). As a result, retail banks will have to maintain a relatively low level of capital coverage in accordance with the new Basel Agreement, but compared with the current Basel Rules. However, banks must provide regulatory data on the probability of default (Probability of Default, PD) and loss in case of default (Loss Given Default, LGD), as well as risk exposure in case of default (EXPOSURE AT Default, EAD) for strictly differentiated portfolio segments . Regulators indicate that segmentation should be based on scoring models or equivalent indicators, as well as on vintage indicators (Vantage), i.e. time when the operation was reflected in the bank balance.
Block 9-2.
Has Pi Retail Credit Risk "Code of Medal"?
So far, we have discussed mainly how scoring models helps to determine the expected level of credit risk for retail portfolios. But in retail lending, there is a "reverse side" of the medal. This is the danger that losses will increase to an unforeseen level due to an unforeseen, but systematic risk factor, which affects the behavior of many loans in the Bank's retail portfolio.
"Retail Retail Retail" banking servicesah has four main components.
■ Not all innovative retail loan products may be associated with sufficient historical data on losses reflecting the level of possible risk.
■ Even well-predicted retail credit products may be changed unexpectedly under the influence of a sharp change in the economic environment, in particular, if all risk factors deteriorate at the same time (the so-called intention of extremely unfavorable circumstances), for example, in mortgage lending, the main concern is due to the fact that a strong decline in The economy is associated with high interest rates can lead to an increase in the risk of loans for loans and at the same time reduce the cost of security.
■ Client addiction to default (or absence) is the result of a complex combination of social and legislative systems that are constantly changing, for example, the social and legislative admissibility of individual bankruptcy, especially in the United States, is one of the factors that probably influenced the level of risk default of individual borrowers in the 1990s.
■ Any operational issues that affect the assessment of customer creditworthiness may have a systematic impact on the entire retail portfolio. Since the consumer loan is a semi-automatic decision-making process, not a series of special decisions, it is important that the credit process be developed and functioned correctly.
It is difficult to determine the magnitude of this risk, as it is badly projected. Instead, banks need to make sure that only a limited number of retail loan portfolios is particularly subject to new types of risks, such as sub-ended lending. Small Uncertainty exposure can open a profitable area of \u200b\u200bactivity and allow banks to collect enough information for better risk assessment in the future; A large exposure makes the bank hostage.
If large traditional portfolios, such as mortgage portfolios, are subject to a sharp change in a variety of risk factors, banks must use stress testing to determine how destructive can every possible most unfavorable scenario can be (see ch. 7).
Credit risk is not the only risk with which the retail banking sphere is faced. As is obvious from the material presented in block 9-3, this is the main financial riskfound in most types of retail activities. Now we will consider the main tool for measuring retail credit risk: scoring models.
Block 9-3.
Other risks of retail banking
Above we focused on credit risk, the main form of retail credit activities. But, like commercial banking services, retail services are subject to various market, operating, business and reputational risks.
■ Percentage risk Created from both assets and obligations, whenever the bank offers specific rates, both for borrowers and depositors. This risk is generally transmitted from the retail of activities to the Treasury of the Retail Bank, where they are controlled through the management of asset and liabilities and the management of liquidity risk (see ch. 8).
■ Asset assessment risks - This is really a special form of market risk, in which the profitability of retail lending depends on the accuracy of the assessment of a particular asset, commitment or class of provision. Probably the most important in mortgage lending is the risk of early repayment of the loan in mortgage, the risk that the cost (value) of the pool portfolio mortgage loans It can be reduced by reducing interest rates, since customers seek to pay existing mortgage loans as quickly as possible by reducing their cost (value). Evaluation and hedging of retail assets that are at risk of early repayment, a rather complicated process, as they are based on client behavior assumptions that are difficult to assess. Another example of risk assessment is to define residual value (Values) cars in the field of lease (car leasing). If this type of risk is obvious, then it should be managed by a centrally treasury of the retail bank.
■ Office operating risks In the retail banking sphere, those divisions are mainly occupied, in whose activities these risks arise. An example is the introduction of new processes that track customer fraud in those situations where it is economically justified. In accordance with the new Basel Agreement, banks should also place regulatory capital on operational risk, both in the retail and in the commercial banking industry. An operating risk management department has appeared, which uses many concepts, such as operational risk at the level of the entire company (see ch. 13).
■ Business risks are the main reason for the concern of top managers. This includes the risk of business operations (for example, an increase and reduction of mortgage lending with increasing or decreased interest rates), strategic risks (for example, an increase in Internet banking or new payment systems) and solutions to mergers and acquisitions.
■ Reputational risks In particular, it is important in the field of retail lending. The bank must maintain his reputation, fulfilling the promise that he gave customers. But he should also maintain his reputation on regulatory authorities who can deprive the license bank if they believe that it acts unfairly or illegally.
- Nevertheless, there is a certain correlation associated with the state of the economy. - Note. translator.
In the process of functioning of the activities of commercial banks, risks are constantly and inevitably arise, which managers of the Bank are trying to resist or use in their favor (the latter is not always taken into account in scientific research and practical work).
By definition, O.I. Lavrushina, "The risk is the estimated state of a particular object of reality as a result of the potential impact on its external and internal factors perceived in this moment time by man as possible sources of losses or benefits. "
The risk management stage in the form of an analysis of the future state of a particular object of reality in order to identify the potential degree of its danger or the profitability of intuitive, scientific tools or other possible ways is the risk assessment procedure. A.V. Astakhov gives the determination of risk management as a way to identify "the degree of potential hazard and / or the profitability of a change in the object of reality, followed by the use of a protective action complex, including a complete refusal of possible benefits."
Modern trends in the field of operational risk are talking about increasing attention to him by the Central Bank of the Russian Federation and commercial banks (residents and non-residents) present on the Russian banking market. Aspiration banking system to the recommendations of the International Institute Regulatory general principles The functioning of international financial institutions (Basel Committee) today forces banks to build an operating risk management system.
Specific elements are inherent in different retail business segments. financial risk. Due to the increase in the share of remote banking in the structure of retail business, and a higher risk, consider the position of some experts on this issue.
Identification and classification of risks inherent payment systemAs well as its participants who experience the influence of these risks and generate them, are the basic elements of the mechanism for managing the risk of payment systems.
Taking into account the specifics of the functioning of specialized payment systems Krivorucheko S.V. and Rodionov A.A. Allocate risks such as risk of medium and risk of calculations.
You can apply various types of mobile payments. For example, you can select risks that arise from delegation of a number of functions when conducting payments by third-party organizations to maintain the properties of the retail network.
They include main risks such as credit, operational, legal, liquidity and reputation loss, as well as the risk of using the money laundering system.
In addition to these risks, there is a risk of business, namely the likelihood of unsuccessful investment in the project of mobile payments by the bank or mobile operator.
The risk structure also includes the risks of numerous counterparties with which banks and mobile operators work. Identification of risks and appropriate measures to mitigate them will allow investment managers to take a positive decision on the start of the project.
Mobile paying risks also arise when making funds to pay from end-consumers in non-banking organizations (companies), which do not fall into the sphere of prudential banking regulation and supervision.
The risk is that the unlicensed, uncontrolled non-banking enterprise will attract funds from the population in exchange for electronic money and the possibility of either the embezzlement of these funds, or the use of them inappropriately, will lead to insolvency and impossibility to fulfill the obligations on customer requirements.
Credit risk when conducting mobile payments is manifested in the possibility of non-receipt (lacking) due to the money of one of the parties in financial operation. Credit risk opportunities increase if bank operations Not held online, and there are additional parties between the client and the bank.
For example, when the client makes money on a deposit through a retail agent, there is a danger that the operation will not reach the bank and the bill will not be driven. On the other hand, when the money is being written off from the account, the retail agent takes on credit risk, especially when the client uses a loan to pay bills through a mobile phone.
Operational risk in such systems is manifested in a wide variety of forms, including technical failures, theft of property with information and codes, fraud, errors. Also, in the case of the use of the agent network and cash transactions, the threat of robbery increases.
Legal risk is associated with the absence or non-compliance with the relevant standards, laws, contracts governing mobile payments, as well as their changes. The implementation of projects for the organization of mobile payments is preceded by an analysis of the current regulatory base, as well as intentions of regulators and legislators to establish rules for such payments such systems. Analysis of foreign regulation experience has shown that regulators or adapt the existing rules for the work of payment systems to new systems are either highly delayed at the stage of developing such acts. Therefore, there is a high uncertainty about the legal environment for this business.
The risk of liquidity is due to the fact that retail agents may not have sufficient cash amounts to meet customer removal requirements, and also do not have sufficient experience in managing financial flows.
In the event of problems, the retail agents may suffer and the reputation of the operator of the system and the bank may suffer. For example, inept customer service can affect the perception by consumers of all other project participants. Differences for the system of mobile payments will increase if cases of theft, errors, interruptions in providing cash networks of retail agents. Moreover, the failure of the project of one operator may undermine the credibility of the market to projects of other operators and banks.
In particular, phone manufacturers must provide an increased level of security to prevent the possibility of embezzlement money With the help of viruses or "Trojan horses".
Phone manufacturers, network operators and banks must match the Unified Model to identify the client. Network operators are called upon to provide low-cost communications for payment messages. Message standards should be developed and interfaces for sharing information between devices at sales points and mobile phones, between mobile phones and banking applications for payments.
Foreign experts recognize that the use of mobile phones as payment devices revealed the problem of the need to increase the technical complexity of these devices. In order to achieve the established work on conducting such payments, you should create or modify many applications to support the long chain of processes when performing the payment task. Therefore, banks, operators, manufacturers of mobile phones, terminals, sellers of goods and services need to update their equipment and applications to support mobile payments.
Significant obstacle for the development of mobile payments and mobile banking Are unsolved issues in the field of security. Without solving these issues, mobile payments in most countries will still remain in phase pilot projects. It is significant that the efforts of encoders of codes in Internet banking are directly proportional to an increase in electronic payments. If today in mobile networks already exist viruses and they can easily spread, it is likely that the hackers will appear, "pressing" meager sums from millions of revolutions during mobile payments. But, on the other hand, the creation of additional and excessive protective barriers to the mobile network will reduce the convenience and simplicity for users, and will also increase the volume of investments of banks and operators per each income unit.
Safety is one of the barriers not only for widespread mobile payments, but also for the development of Internet banking. Such payments are initiated remotely without the possibility of physical identification of the client (user). The client must have a specific device or a security mechanism that can not use another person or who cannot be forged. It is known that not only personal computers, but also cell phones may be subjected to viral attack, as well as hacking and stealing codes with the aim of uncontrolled account orders without the knowledge of the true owner. For this purpose, the active development of safety enhancement measures are continued, including the biometric identification of the individual.
Before all participants in the mobile payment market, it is necessary to solve the problem - how to achieve an optimal balance between security and convenience, between protection of private information and ease of use. A too high security will increase costs and reduce convenience, and too detailed information of a private nature will lead to the risk of abuse.
Thus, it is possible to summarize that it is precisely operating risks today represent the most serious problem for the banking sector.
At the moment, the category of risks comprising the above examples and the target name is "operational risk". However, today not only there is no single concept of definition, assessment and management of operational risk, but it is difficult to find any integrated and consistent approach to this problem.
Commercial bank "Sunja" LLC in its activities, in particular in retail business, to assess the level of operating risk management, use a whole set of factors. Given these factors developed various regulationsconstituting internal regulations for employees. The main conditions that the internal regulations must meet, this is:
the existence of an adequate, effective, communicated by the internal regulatory framework (provisions, procedures, etc.) regarding the management of an operating and technological risk, approved by the relevant bank bodies based on the principles of corporate governance, as well as relevant practices to fulfill its requirements;
the number and complexity of processing operations in comparison with the level of development and the capacity of operating and control systems, given the previous results of the work of these systems, their current state and the prospects for further improvement;
the likelihood of technological and operating failures, excess of powers by personnel, disadvantages in the preceding analysis of operations during decision-making, as well as the absence (including temporary) monitoring or registration of transactions with clients or counterparties;
availability and compliance with the Bank technological maps operations;
availability, quantity, causes and nature of violations of administrative and accounting procedures;
the potential financial loss opportunity, due to:
errors of performers or fraud;
low operating competitiveness of the bank;
inadequacy of available information systems;
incomplete information regarding the counterparty or operation;
operating and technological failures;
the history and nature of complaints and customer appeals to the Bank in connection with the disadvantages of the operations of operating systems and the reaction to them of the bank;
volumes and adequacy of controls for banking software and its accompaniment and other services that are carried out with the involvement of third parties (Outourcing);
the adequacy of the strategy regarding information technology, the strategy for information technology should meet the current and foreseen requirements regarding the Bank's activities and take into account the structure of technical equipment, telecommunications, software, data and networks, as well as the integrity of the information database.
As can be seen from the foregoing, banks should seriously refer to the problem of operational risk and a large amount of evaluation criteria should be determined to assess its level.
Based on the assessment of the adequacy of the above factors, as well as special assessment matrices, banking supervisors will be able not only to estimate the number of operational risk and the quality of management of them, but also to assess the trend in the level of operational risk in future periods.
Neither system of interbank exchange information nor bureau credit stories Cannot reveal the risk of social default borrowers
However, not all market participants with optimism estimate the outlined boom on the cache loan market and credit cards. "Over the past three years, the product offer in the cache credits of all banks has changed - the amounts and terms of loans are growing steadily," comments Evgeny Thakevich. - Significant risks are concentrated here, because cache loans are most sensitive to social default and any economic shocks that are few predictable in the long run. " The concerns of the market participants cause both a tendency to reduce the gap between real incomes and expenditures of the population. According to the Ministry of Economic Development, in January - March 2012, the cash spending of the population exceeded incomes by 256 billion rubles, while the population used 80.5% of their cash income to consumption (for the same period last year, 78.6% were spent on these purposes). Against the background of the growth of the cost of utility tariffs, this can lead to the fact that a part of borrowers using several borrowers using simultaneously credit productsThey will not be able to pay for their obligations in full. "The increasing flow of applications for cache credits comes from borrowers already having several existing loans to banks," Evgeny Thakevich agrees. - Most of them, the ratio of debt / income is already close to the critical level - 60%. " The presence of a small (even technical) delay in such a type of borrowers in the past should at least alert the bank - if there are several active loans at the same time, even a small salary delay can lead to the delay of all loans. As a result, during the periods of the economic recession, the retail portfolio can even be completely diversified by the number of borrowers and the size of loans may be irrevocated in a short time.
Of course, interaction with the Bureau of Credit Stories and the active development of interbank information exchange systems about borrowers is helpful for banks in assessing the risks of such borrowers. About 42% of the banks surveyed by the "expert" of banks already use the interbank information exchange, another 10% plan to introduce it until the end of 2012. According to our estimates, the share credit applications In cache credits, requests for which were sent to the BKA, on average, increased by 15% in the first half of 2012 (compared to the same year a year earlier). However, neither the interbank information exchange system nor the bureau of credit stories is not able to identify the risk of social default of borrowers, in which due to external circumstances The person decreases the level of income. Yes, and the risk management systems of many banks do not take into account such a risk of consumer loansand also not fully take into account possible changes existing expenses of potential borrowers in the future.
In addition, market participants noted that the further growth of retail at the expense of first-class borrowers has been exhausted. To maintain current profits, banks begin to gradually mitigate the requirements for borrowers. Consumer loan rates remain at the same level as a year earlier (see Chart 3). According to the survey of the expert RA, only a quarter of banks raised interest rates on consumer loans in the first half of 2012, while more than half said that the rates did not change either decreased. Until the end of 2012, 19% of respondents credit organizations Plan an increase rates, the third banks have no such plans.
Schedule 3. Weighted loan rates provided individualssuffered minor changes for the year
Source: "Expert RA" according to the Bank of Russia
To preserve the current profitability, banks begin to gradually mitigate crediting conditions and requirements for potential borrowers. The need to grow business and maintain profitability will require access to new, more risky (and, as a result, even more profitable) segments that are "primary" microfinance organizations. Despite the presence of competitors, significant potential is concentrated here for banks. After all, MFIs, attracting significantly more expensive funding, simply will not be able to compete with banks at loans rates. However, the growth of the market by mitigating requirements in risk management systems - a risky model of retail development.
It is not surprising that excessive growth rates of non-tax consumer lending in individual banks cause concerns from the regulator. The Bank of Russia has already stated a special control of the activities of the most active players in the market, and next year, participants in the next year, participants may fall under the inspections of the main inspection of credit institutions.
Excessive growth rates of non-tax consumer lending causes concerns from the regulator.
Worried about the regulator and the interaction of banks with collectors, in particular the conditions for the reverse ransom of the assigned debts. If there is a doubt about the adequacy of the risk assessment on issued banks issued loans, a situation is possible, in which the quality of the assigned debts will be different from the assignation prescribed in the contract, in which case the bank will have to back to take out the defendants. And in the case of the adoption of the Act on Collector Activities, the transfer of bad debts "to the side" can be significantly complicated. "The law should give a legal assessment of this activity, regulate the relations of collectors and debtors, as well as solve the current legal conflicts relating to the protection of personal data, cessia, etc.," says Yuri Andersov. The final edition of the draft law is not yet ready. But the banks are most afraid of the introduction of a ban on the assignment of debt to third parties who do not have a banking license, as well as the requirements of the mandatory consent of borrowers to transfer debts to collectors. The introduction of such prohibitions may cause interest rates that in yet more than Will aggravate the debt load of borrowers.
Another discussed innovation in consumer lending is the introduction of the so-called "cooling period". It is also able to have a significant impact on the growth rate of the market. The "cooling period" can potentially entail the growth of lending, since such an opportunity eliminates one of the deterrent factors for the consumer. If the client will know that he can return the money to the bank, without losing and not overpaying, he will be more willing to apply for loans, "Jury Andres comments. There are such innovations and the reverse side. "Cooling period" is very difficult to implement in IT-provision. Compassal technical improvements will be required, which, naturally, can affect the cost of loans, "said Evgeny Thakevich.
The time interval from the date of concluding a contract during which the borrower can return a loan without accrual interest and penalties.
Seminar program:
1. Risk management system in the bank
1.1. Classification of risks of the bank, determination of retail credit risks
1.2. Objectives and principles of bank risks
1.3. Objectives and principles of bank retail risks
1.4. The ratio of retail risks management objectives with the goals of the bank
1.5. Risk management methods
1.5.1. Refusal of risk
1.5.2. Risk Limit
1.5.3. Risk diversification
1.5.4. Hedge risk
1.5.5. Reservation of funds for projected losses
1.6. Organizational structure Bank Risk Management
1.7. Separation of powers between the units involved in risk management
1.8. Decision making system
1.9. Interaction of divisions
1.10. COMPLEMENTATION OF EMPLOYEES OF DEVICES PARTICIPATIONS
2. Life cycle loan
2.1. Grocery line of the bank and the specificity of retail products
2.2. Credit life cycle concept
2.3. Risk management bank activity during life cycle
2.4. Retail Risk Management Efficiency Criteria at each stage of the life cycle
3. Data for managing retail credit risks
3.1. Intrabank data
3.2. External For Bank Data
4. Credit issuance: credit decision making system
4.1. Stages of making credit solutions
4.2. Automatic decision making system (CAD)
4.3. Manual decision making
4.4. Fraud prevention
4.5. Development and optimization of the decision-making system in the bank
4.6. Reporting
5. Credit portfolio management
5.1. Concept of portfolio risk management
5.2. Card Portfolio Limit Management
5.3. Reservation: RAS and IFRS
5.4. Budgeting taking into account the level of credit risk
5.5. Reporting
6. Collection of overdue debts
6.1. The effect of Collection on financial results bank
6.2. Stages of separated debt
6.3. Estimated debt collection strategies
6.4. Reporting
7. Organization of databases and use of information
7.1. Objectives of creating database
7.2. Unified or distributed database in the bank?
7.3. Replication and archiving
7.4. What bids and events to store?
7.5. Data specifics: Overdue counters
7.6. Requirements for retail database
8. Econometric and optimization data processing models in retail risks management
8.1. Scoring and non-object models: applications
8.2. Segmentation models
8.3. Forecast models
8.4. Optimization models
8.5. Types of scoring models: Application / Behavior
8.6. Methods for building scoring models
8.7. Selecting data for modeling
8.8. Quality assessment of models
8.9. Implementation of scoring models in risk management
8.10.Monitoring of the quality of scoring models
