Work with problem loans in the bank. Features of the work of banks with problem loans: Russian and overseas experience. Requests to delay payments for previously prolonged loans

Credit is a wide concept involving the presence of various forms of credit relations, as forming sources of bank funds and representing one of the forms of their investment. The loan is one of the forms of organizing credit relations, the emergence of which is accompanied by opening a loan account. In addition, credit relationships can be organized not only within the framework of a bank loan, but also as commercial lending, when enterprises are in the person and the borrower, and the creditor acts, and the credit relations between them are issued by the Week. In the future, a commercial loan can be transformed into banking through the provision of a loan on the security of an exchange or its accounting.

Bank loan is a very convenient and in many cases an indispensable form of financial services that allows you to flexibly take into account the needs of each borrower and adapt to them to obtain a loan (as opposed, for example, from the securities market, where the dates and other loan conditions are standardized).

Accordingly, direct bank lending is allocated when the company's credit relations initially arise as relationships with the Bank, and indirect bank lending, when the credit relations arise between enterprises, which subsequently turn to the bank in search of a method for early receipt of funds on the bill.

The main activity of the commercial bank is lending. In particular, retail and mortgage lending, as the most common banking products.

An indicator of the quality of the loan issued is how well it will be serviced. In the ideal case, for the bank, debt quenching should be made according to the schedule of the loan agreement. Thus, when servicing a loan, the borrower complies with an agreement with the Bank, the form of a loan agreement and the gaming schedule. In compliance with the terms of the contract, overdue debts are not formed on the borrower and, as a rule, the communication of the Bank's employees and the borrower is friendly. Under these conditions, a loan, after several quenchings, the first quality category is assigned.

Loans are not always serviced by agreement reached between the bank and the borrower. Because of several reasons, the borrower ceases to comply with the contract schedule, allows for overdue debts, and sometimes it ceases to exhaust debt to the bank. In this case, the borrower receives the status of an unscrupulous borrower, and the loan reduces the category of quality. The presence of overdue loans is extremely not desirable for a bank, at least two main reasons:

The loan is issued by deposit money attracted by customers. According to deposit money, the Bank is responsible to customers enshrined by law.

The fact of the presence of delay in loans is rigidly controlled by the regulator. The regulator requires, in case of a delay in the loan, to form a reserve on this loan. On a daily basis, the Bank reports to the regulator on the presence of a delay in the loan portfolio and formed reserves.

In recent years, the amount of debt increased with which collector agencies work under cessia treaties. According to the composed "Credit Credit Consolidacy" of the market, if in 2012 the banks sold about 30 billion debts, then in 2013 - already 60.7 billion, and in 2014 the cessia market increased significantly and amounted to 78.7 billion. rub. According to experts, in 2015, the debts will be put up for sale in the amount of $ 4-5 billion, i.e. About a third of the existing delay.

Based on the information provided, it can be argued that for banks the problem of overdue debt remains still relevant. The presence of overdue debts in the loan portfolio does not most effect on the financial condition of the bank. In the case of critical periods of delay, the Bank may terminate its existence. Care of banks from the market due to the increase in overdue debt we could observe during the crisis in 2008. Since there is another economic crisis in peace and Russia, the topic of analyzing the work of the Bank with problem debts is relevant.

The standard return procedure of overdue debts looks approximately as follows: If the borrower did not pay the next loan payment on time, the credit unit staff or the Bank's Call Center remind him of this call on the phone or SMS message. A few days later, in case of non-debt, the borrower and the guarantor, send letters with a notice of violation of the terms of the loan agreement and the warning of the Bank's right to return the full amount of debt (including and provided that the term of the full repayment of the loan has not come yet) . As a rule, according to the internal provisions of credit institutions, the loan passes into the category of problem after 90 days overdue on it. In case of no return of an overdue loan, employees of special divisions of the Bank on working with problem debt are connected to repay it. After six months after the occurrence of overdue debts, banks tend to go to court with a suit on the borrower, demanding full repayment of the loan.

Of course, the financial crisis has a consequence in the emergence of overdue debt on the loan portfolio. When banks faced issues of non-payments on loans and actively spoke about problem assets, credit units managed to the instrument as a restructuring of loans.

There were cases of mass restructuring without taking into account the financial capabilities of clients to comply with new loan repayment conditions. With this approach, restructuring does not improve the real quality of the loan portfolio, but only delaying the reflection of overdue debts on the balance sheet, as evidenced by the existence of a significant proportion of restructured debt, according to which a violation of the monthly payment schedule re-arose.

The following option with problem debt is the joint work of banks with collector agencies. In practice, two main methods of working with collector agencies: outsourcing (agency agreement) and cession (assignment of the rights of claim).

Outsourcing suggests the transfer of a collector agency of problem debt to management.

The assignment of the rights of the debt claim (cession) implies the transfer of the rights of the lender to the collector agency (the consent of the debtor is not required, provided that this is not provided for by the contract).

In the current Russian legislation, the concept of "outsourcing" does not exist, so such legal relations are governed by several types of civil law agreements similar to the regulation of similar obligations. The provision of collector services at the agency agreement involves the conclusion between the Bank and the collector agency of the Agreement, on the basis of which collectors conduct work with debtors on the instructions of the bank. As a remuneration for recovery services, the Commission is charged from the bank - a certain percentage of the amount of return debt. The size of the commission ranges from 10 to 50% and depends on several factors. First of all, from the list of services provided by the Collector Agency: it deals with judicial and post-residents or works only on an extrajudicial recovery of debt.

The efficiency of the collector company depends on both the characteristics of the company itself (staff size, technical equipment and methods of work, qualifications and experience of employees) and from the quality of the loan portfolio transmitted to the agency service.

For sale to third parties of problem debt, generally accepted practice in all countries, and recently it begins to be used in Russia. The regulation of this issue is highlighted in Chapter 24 of the Civil Code of the Russian Federation "Change of persons in the obligation."

Before the crisis, loan portfolios of banks transmitted under the Treaty contained debts with a delay in return over 270 days. Today, portfolios from 180 days are sold on the market. Applying Cessia agreements when buying out portfolios of bad debts, discounts may be provided. The cessia agreement implies the transition to the Bank the right to receive funds under contracts for the assignment of the rights of claim. The cost of services in this type of contract must be sufficient to repay the entire volume of loan debt. The bank has the right to take advantage of the revenue only to repay the loan issued and paying the entire debt on the loan. If, at the request, the amount of money exceeds the loan debt, then the difference is returned to the subject.

Consequently, we conclude that banks began to better understand and more actively use the advantages that the procedure for recovery of debts with collector agencies, including reducing operational costs and deductions to reserve funds.

One of the common methods is the sale of loan portfolios to factoring companies, which can subsequently convey them to recover collector firms. The popularity of sales of sales using factoring companies is explained by the peculiarities of the current regulatory framework. Factoring operations are defined as follows. Under the financing agreement under the assignment of the money requirements, one party (financial agent) transfers or undertakes to transfer to the other Party (Customer) to the third party (debtor), which arises from the provision of goods, fulfill their work or The provision of services to a third party, and the client is inferior or undertakes to give way to a financial agent is a monetary requirement. The monetary requirement for the debtor may be submitted by the Client to a financial agent to ensure the fulfillment of the client's obligations to the financial agent. Factoring is a variety of short-term credit and simultaneous commission transaction.

The dynamics of factoring development in the country in 2014, contrary to all forecasts, turned out to be higher than in 2013. At the end of last year, the market volume amounted to 882 billion rubles, which is 82% higher than at the end of 2014 (484 billion rubles and 53% compared to 2013).

Compared to collector companies, factoring has, in our opinion, more opportunities. In particular, the loan loan portfolio is also carried out as a collector agencies with a discount (as a fee for the implementation of this operation), however, the sale of debts is carried out with the execution of various methods, such as an open tender, a closed tender, direct sale to the final buyer, assignation of debt to Pifam.

One of the options for the liberation of the balance from non-working debt is the write-off of problem debt. It is usually resorted to the extreme measures when there is no hope for obtaining an effect from the attempts to recover the debt or carrying out debt collection activities unprofitable (with minor amounts of loans, the cost of finding a borrower can sometimes exceed the amount of debt). According to Chapter 8 of the provisions of the Central Bank of the Russian Federation No. 254-P, banks have the right to write off the debt recognized by the hopeless, due to the reserves formed under it. When writing off hopeless debts on loans and interest on it, a credit organization is obliged to take the necessary and sufficient legal and actual actions to recover the specified debt, the possibility of the implementation of which follows from the law, customs of business turnover or contract.

Currently, one of the methods of resuscitation of the banking sector used in the global economy is the creation of "bad" banks.

The Bank of Problem Assets is the financial structure, the balance of which is the assets of private banks, the likelihood of which is impossible. "Bad" Bank (Bad Bank) is a fully state structure. The task of the "bad" bank includes the accumulation of toxic assets by redeeve them from banks and carrying out work with problem assets in order to return debts.

Foreign experience of bad banks is successful. In the 90s, in Sweden, banks with problem assets managed to return the third part of the book value of the problem debt. At the moment, at the end of March, the US Department of Finance published a long-awaited program called Tarp (Troubled Asset Relief Program). Its essence is to buy out the banks of "toxic assets" and translating them to the balance sheets of specially created private-state investment funds.

The question of creating a bank of problem assets in Russia is rising constantly. However, there are some difficulties in creating a similar bank. First, difficulties arise with the price determination, according to which the Bank would buy their problem assets in commercial banks; Secondly, provided that the commercial bank translates its problem debt on the balance sheet of a special bank, thereby be able to continue its activities without any special changes, thus the state will pay the erroneous policy of the management and owners of the bank. It should be noted that the creation of a bank of problem assets can provoke corruption actions at the same time bankers, their debtors and officials.

The sanational bank can be created not only by the state, but also by a group of banks or one bank, or another company. Specialists offer another way to solve the problem. The essence is that each bank creates a child's "bad" bank to whose balance it would translate its "bad assets". The head bank would continue to work with "good assets", and therefore, would have resumed lending, and the child "bad" bank would have conducted work with problem loans. But the conclusion from the bank "bad" debts does not necessarily save him from bankruptcy.

After analyzing the approaches to work with problem debt described above, select their strengths and weaknesses in Table 1.

Table 1 - Advantages and Disadvantages of various methods of working with the problematic debt of a commercial bank

Methods of working with problem loans	Benefits	disadvantages
Independent work of the bank to return problem debts	Lack of expenses for the work of collector companies and discount when selling	1. The costs of the Bank's funds and the time of full-time employees in the absence of a guarantee of the return of funds. 2. The need for formation of 51-100% of the reserve for possible losses on the loan. 3. Negative influence of problem debt on the quality of the loan portfolio.
Conclusion with a collector company Agreement on a portfolio agency service	1. Lack of time to work with problem debt provides the bank with the opportunity to focus on profitable operations. 2. Financial expenses for the return of problem debt arise only if debt is refunded	Costs for the payment of the Commission to the Collector Agency (as a percentage of the amount of debt returned)
Reference to the right requirements (portfolio sale), including the transfer of portfolia	1. Lack of costs and time to work with problematic debt provides the bank with the opportunity to focus on profitable operations. 2. Crop with a bank responsibility for the return of debt and, thus, avoiding the conflict with the debtor 3. Improving the quality of the portfolio due to the transfer of the right to claim to third parties. 4.Potimization of taxation (when transferred debts to FIF)	Loss of portfolio parts by selling with discount.
Cancellation of hopeless loans	1. The lack of costs of funds and time to work with problem debt provides the bank with the opportunity to focus on profitable operations 2. Improving the quality of the loan portfolio due to the write-off of problem debt.	1. The need to form 100% of reserves for possible losses. 2. Tax costs. Since the loan loan is income for the borrower - this is an income, the Bank as a tax agent should write off tax on personal income tax and pay income tax (out of the amount of released reserves)

So, the most common methods at the moment are independent management of problem debt or the sale of loan portfolios collector and factoring companies, including those related. Most banks use several methods: in the early stages, they independently work with problem debts, and at later - transfer it to outsourcing, collector companies or sell. At the same time, we note that subject to the presence of small amounts of debt on loans, sometimes they are written off due to reserves. To improve independent management, it is necessary to create a management company for working with problem debts: either a separate structure for collecting problem loans, such as a subsidiary or the creation of a department in the banking structure.

Recently, there has been a tendency to revise the banks of their policies in favor of selling portfolios with existing debt. Some banks are represented by the debt on the loan of individuals to other individuals, some use the Bank's participation method in the business borrower's business. Purification of the balance from non-working assets by transferring them to intrinsics is not yet distributed and used only by individual banks. This is partly due to the lack of awareness of banks, partly - with the lack of clear legislation in this area. Perhaps in the future this direction will develop, especially if there are legislative support.

The most popular methods of management of problem debts, as before the crisis, are still restructuring debt, the sale of problem debt, as well as methods possible only under the initiative of the monetary authorities.

Moskalenko A. R. Factor wholesale // Profile. - № 758. - 2012. - with. 121 - 144.

At the exit of the crisis: an overview of the trends of the Russian economy. // Center for Macroeconomic Analysis, 2012. - 348 p.

Pivovarova MA "Bad" bank for "good" banks // Bank Review. - № 5. - 2010. - p. 124.

Silvestrov S.I. The global economic crisis and the formation of a new global economy architecture // Bulletin of the Financial Academy. - 2013. - № 3. - s. 14 - 17.

Fursikova E.G. Methods of working with problematic debt consumer lending, their advantages and disadvantages // Modern problems of science and education. - 2012. - 244 p.

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If there are signs of a reduction in classification and raising risk on the loan, responsible employees of the Bank are informed by the Credit Committee and the Bank's management.

In case of non-missing by the borrower amounts of remuneration (interest) and the principal debt after the expiration of a planned or prolonged term, a credit unit is preparing to offer a loan committee on additional prolongation of the specified loan. In case of unacceptability of prolongation, the loan is made to the account of overdue loans.

A memtory note about the emergence of a problem loan is transferred to the Bank's Security Department for the activities of assistance in repayment of the problem loan.

Measures to overcome problems arising, including:

* A meeting is held with a borrower to clarify the causes of the critical situation;

* The financial state of the borrower is checked, if necessary, with departure to the place;

* The problems of the client are analyzed with the identification of the main reason for the occurrence of a critical situation (the problems of this industry, the position of the enterprise in the industry, the loss of competitiveness and markets, temporary deterioration of the financial condition or financial collapse, etc.);

* The degree of acute problem is estimated to overcome it (one can or cannot be corrected);

* in the process of rehabilitation of a loan, attention is concentrated on the structure of the balance and composition of the cash flow;

* Measures to save a problem loan (measures to change the debt structure of the borrower, additional provision and guarantees on the loan, consulting services for financial recovery and reduction of the borrower's expenditures, termination of regular payments on the loan, etc.).

In the event of a loan takeaway to the account of overdue loans, the management of loans is proceeding to the procedure for implementing the laid property (extrajudicial or judicial) in the procedure established by applicable law. Extrajudicial trading of the laid property is carried out by a trustee of the Bank in English or Dutch methods (to increase or decrease in the price of trading, respectively).

According to the forms of the Loans, an acceptable debt repayment scheme is produced: the assignment of the demand, debt transfer, work with the borrower to return receivables and other events together with the Department of Safety in working with problem loans there are four main stages:

1) early detection of problems;

2) analysis of problems and potential outputs from

created situation;

development of the problem of liquidation of the problem;

implementation of a plan.

Throughout the process, the bank should be very pricious in order to preserve good relationships with the client, since the most favorable for the bank is a way out of the created position is usually close cooperation with a customer on a fairly long-term basis.

1. Early problem detection

The most important step in solving problems with regard to crediting is the initial designation of the problem as such, in its pure form, at how an early stage of its occurrence (before it becomes an obvious borrower default on the principal amount of debt or percentages on it). For this reason, the fact that the relationship manager, a credit officer or all the Department of Lending, credit officer or all the Department of Lending, can properly evaluate "alarm signals" and in time to take certain measures to prevent a potential problem.

A detailed list of early "alarm signals" is presented in the previous section 3.2.

The Bank's Office should receive regular information on the portfolio of unpaid loans, as well as regular reporting on all actions regarding problem loans.

2. Collect information and analysis of the problem

At this stage, the following questions arise, which is designed to quickly and effectively solve credit personnel:

§ What is the cause of the problem that has arisen: bad management, weak planning, poor financial forecasting, temporary turmoils in the markets;

§ Whether the dates of payments are coincided with the dates of receiving the company's main cash flows / private borrowing;

§ this borrower will be useful for the bank in the future;

§ Overview of the integrity of the borrower as enterprises, its financial resources, experience and motivation;

§ What will lose the borrower in the event of a default on its obligations to the Bank (assets, share capital, prestige, ability to borrow in the future);

§ What is the situation with the deposit;

§ What is the current market value of the collateral and its condition;

§ There is an additional loan provision that the bank can request;

§ the liquidity of the pledge (can it be easily and quickly implemented);

§ Legal aspects of credit provision are settled (it is easy to enter into possession of the key and sell it);

§ Are there any specific requirements for preserving the value of the collateral (for example, specific requirements for transportation or storage);

§ If the pledge is an unfinished project: Update the project's technical justification / business plan, in which the project is completed, who can bring the project before completion, can the project be sold before completion, what is the guarantee situation, is there a strong guarantor that is able to solve the problem of;

§ What is the legal side of the question: whether official legal procedures are needed, as much time they can occupy how expensive they will cost, whether everything is in order of the Bank's legal documentation;

§ What is in the interests of the borrower: to avoid personal responsibility, keep share capital, to avoid legal costs, minimize tax consequences;

§ What is in the interests of the bank: improving the assembly of the main part of the debt and interest on it, avoiding legal costs, minimizing tax payments, minimizing the reserve requirements of the National Bank of Kazakhstan, the preservation of the value of the collateral, the protection of public image of the bank.

3. Overview Alternatives and the choice of the best solution to the problem

The decision may depend on the nature of the problem. Below are some examples.

If the borrower has an honest name and worthy authority on the market, then to solve the problem to cooperate better with it. If not, it will be better to take legal actions or retain a deposit.

If the problem is due to poor management, it may be advisable to find another company / person who can fix the position of the project or company, as well as take over the fulfillment of obligations to the bank. An alternative option is to sell a borrower of a project / company another company or face.

If the problem is due to weak financial forecasting, the project or company will simply be unable to maintain normal debt service. The best solution may be a revision of the Debt Terms (for example, the conditions for repaying the principal amount or the term of debt appeal) in order to provide a borrower to pay for their duty. It is better to get at least something than nothing.

If the problem is caused by temporary turmoils in the market or inconsistency between the cash flows of the borrower and the payment of the loan obligation, the best solution to this problem will be the revision of the payment schedule.

If a deposit is a project close to completion, then the optimal solution will be an additional lending to the borrower in order to successfully complete the project. As soon as the project begins to profit a borrower, he will immediately begin to fulfill its obligations to the bank.

After the problem is identified, the bank should take the following steps to strengthen its position:

§ to increase the level of monitoring of the borrower;

§ require updating legal documentation

§ Check whether the banks have all the documents are in due order);

§ to ask for additional credit provision;

§ requiring guarantees, including additional (new);

§ requiring share capital;

§ to participate in the decision-making process of the company's management.

4. Plan execution

When executing a plan, the bank should allocate a person in charge. In general, in the interests of the bank to lead data to the case diplomatic with elements of rigidity. If the borrower is quite motivated, it will be useful for the Bank when solving problems until it has been saved by good relationships. In addition, the Bank must be remembered to preserve its reputation. In the interests of the respected bank, solve such problems in the most efficient and professional manner with constancy elements.

After drawing up a credit memorandum, a legal department starts to work. Lawyers hold a legal expertise of the project, detecting and eliminating legal violations. Documents are checked for possible inaccuracies and errors.

In a situation with deteriorating loans, when the risk is significantly increasing, it is important for the bank to quickly react, control the risks and reduce the loss. For example, in OJSC Kazkommertsbank, to assist in solving these problems, the work is managed by managing the restructuring of the debts of the Risk Management Department and Problem Credits. The main goal is to prevent or reduce losses from worsening bank loans. In this case, it may be necessary to help the borrower to improve the situation in the enterprise so that the client can repay the loan by revising the terms of the transaction, the elimination of assets or other solutions. Also in the form of preventive work, in order to reduce the risk of non-payment of debt, credit workers accrue provisions for each loan, classifying any loan for financial state.

In the event that, based on the results of the work of debt restructuring management, a decision was made to consider the problem, it is necessary to maintain a claim and claim to return debt by implementing collateral and / or the following situations occur:

* Bankruptcy procedure began, the client threatens to submit to the Bank to the Court;

* It is not possible to find a customer, or a client, as a rule, does not want to cooperate with the bank.

Credit dossier is fully transmitted to the Security Department.

If it is impossible to correct the critical situation with the loan issued by loans and the onset of the loan repayment, the Bank places claims to ensure and perform other legal actions provided for by the legislation of the Republic of Kazakhstan, including the implementation of the laid property.

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THESIS

on the topic "Features of banks with problem loans: Russian and foreign experience"

Moscow 2010.

Introduction

2.1 Bank credit policy

2.2 Stages of the Bank's work with problem loans

Chapter III. The main directions in solving the issue of problem loans

3.1 Debt restructuring as the main way of working banks with problem loans

3.2 Interaction of banks with collector companies

3.3 Ways to improve the organization of banks with problem loans

Conclusion

Bibliography

problem Credit Restructuring Debt

Introduction

During the global crisis with whom Russia faced at the end of 2008, in the country for the first time the time of the collapse of the USSR and the transition from the centralized planned economy to the market, when entering the stage of economic recession, a functioning banking system remained.

The result was the fact that Russian banks were first accumulated loans issued on commercial conditions, but no more revenues. However, even when the loan ceases to generate income, he still possesses some residual value.

With the desire to extract the maximum residual value, other methods are required than those used to manage trouble-free loans, the result of which is the emergence of specialized agencies engaged in the purchase of such loans from banks. At the same time, the transparent and liquid market may appear only on the condition that approaches to assessing assets in all its participants will be comparable.

Banking activity is inextricably linked with various risks (credit, operational, market, etc.) arising in the process of interaction of the bank with an external environment. Credit risk, that is, the probability of no return issued by the Bank of loans, provides the greatest threat to the vital activity of credit institutions. That is why credit risk management is main in banking. The overwhelming number of bankruptcies, credit institutions is due to the abnormal policy of the Bank in the field of the formation and management of the loan portfolio.

Thesis is devoted to a key issue in credit risk management - the work of banks with problem loans. The effective policy of the Bank for the improvement of the balance sheet of a credit organization by restructuring problem loans allows you to minimize damages, which seems extremely important against the background of the global trend of reducing banking business profitability. For Russia, the problem of management of problem loans strengthens its relevance, since the indicators of overdue and dubious debt on loan portfolios of domestic banks in various estimates exceed the level of similar indicators of banks developed countries. It is for this reason, as well as on the basis of world practices and procedures for reducing banking risks, the Bank of Russia constantly indicates to Russian banks on the need to improve risk management as a whole, and above all credit risks.

Banks are inevitably faced with borrowers who are not able to give their debts. In this regard, procedures were developed to collect such debts and the implementation of pledge on them. Participation in these procedures of non-bank investors, as well as third parties (specialized collection agencies), is a relatively new phenomenon. It is it that leads to the development of active and transparent trade in problem loans. The financial crisis speeds up this process. Since during the crisis the number of problem borrowers increases sharply, more and more problem loans are becoming more and more, the existing methods of working with them are not sufficient.

The significance of solving these problems to ensure effective and stable functioning, primarily the Russian banking system, determined the relevance, goals and objectives of the study.

The object of research is commercial banks with problem debt.

The subject of research is the financial and economic relations that are developing in the process of organizing the work of banks with problem loans.

The main purpose of the graduation work is to study the peculiarities of the work of banks with problem loans.

This goal has identified a number of specific tasks:

determining the causes of problem loans;

explore the overseas experience of banks with problem loans;

determining the right organization of the work of banks with problem loans;

determine the main directions in solving the issue of problem loans.

The theoretical and methodological basis of the study are the works of domestic and foreign scientists on the problems of credit activities. The information base of the work is the assessments and statistics of the Bank of Russia, other Russian and international organizations, legislative, legal and regulatory documents, periodic printing materials.

Thesis consists of introduction, three chapters, conclusion and bibliographic list.

The first chapter discusses the theoretical foundations of the concept of "problem loans", signs and causes of their occurrence, and also considers the modern market of non-working loans in Russia and abroad.

The second chapter is devoted to the consideration of the methods and methods of organizing the work of commercial banks with problem loans on the example of LLC Home Credit End Finance Bank, the main directions applied in its practice are allocated.

The third chapter discloses the main directions in solving the issue of problem loans and ways to improve their improvement.

In conclusion, the main conclusions and suggestions during the study.

Chapter I. Theoretical foundations of the concept of "problem loans"

1.1 Problem loans: the concept and causes of occurrence

During the implementation by the Bank of the Credit Policy in terms of ensuring the repayment of the loan, it is important to work with "problem" loans. Under the "problem" means loans for which after issuing on time and in full no obligations on the part of the borrower or the cost of ensuring the loan has decreased significantly. Management "Problem" loans is one of the most important aspects of banking practice. Not only the success of the permission of a separate conflict situation, but also the stability and reputation of the Bank itself depends on the correctness of the choice of working with "problem" loans.

Practically solving the problem of managing overdue debt depends largely on two conditions. First, whether the loan agreement contains the Region giving the right to check the accounting and financial statements of the borrower by making inspections directly at the enterprise, and whether it is possible to terminate the loan agreement and pay for a deposit if the Bank has reasonable suspicion of the incomprehensibility of the borrower. Secondly, what powers the bank's credit specialist is endowed, under the constant control of which each issued loan should be. There is a basic "set of signals", indicators characterizing the emergence of poor quality, "problematic" loan. There are no universal rules with regard to the "salvation" strategy of loans, since each "problem" loan is unique in its own way. Therefore, it is of interest to summarize techniques used in banking practice.

The most widespread the following approaches. First, in the process of monitoring compliance with the conditions for execution of obligations by borrowers, "alarming" signals are systematized in two groups: 1) having signs of organized (non-financial) and 2) economic (financial) character. This allows you to develop a reasonable and effective reaction to them. Secondly, develop an action plan that will contribute to improving the quality of the loan provided. Thirdly, take (choose) ways to resolve the conflict between the bank and the client on a specific loan.

Problem loans are most often the result of the monetary crisis from the client. The specified crisis can appear suddenly, but it develops gradually. And as it is developed, it is still weak, but still signs (external and internal) of his occurrence. Credit division employees are the first "line of defense" of the Bank against possible losses.

The deterioration in the quality of the loan must be identified at an early stage when there are still enough ways to reflect the situation. In credit policies should be clearly defined that the bank will do with problem loans.

Consider the details of the "problem problems" of the loan.

Organizational features include:

unreasonable delays in obtaining a borrower of financial statements. They are especially indicative when the loan agreement contains conditions requiring quarterly reporting;

borrower's reluctance to give a detailed explanation of financial statements. In this case, the loan specialist needs to be a thorough analysis of the situation and determine whether the borrower does not abuse its right to non-disclosure of certain information;

sharp changes in the activities of the borrower, the transition to new markets and sales markets;

radical changes in the company's leaders of the borrower;

adverse trends in the development of the market, which carries out its financial and economic activities of the borrower;

frequent change of legal address, location, phone numbers, etc.;

long absence of contacts with manual and employees of the enterprise;

requests to delay payments for previously prolonged loans.

Economic (financial) signs of "problem" loan.

Financial signs of the problem of credit are manifested when analyzing the financial statements of the borrower and its financial statements directly in the process of conducting inspections at the borrower's enterprise (the audit data holds a credit specialist during the period of the loan agreement). In the return mechanism of the loan, this stage seems to be the most responsible. Economic (financial) signs are manifested in the deterioration of indicators obtained as a result of the analysis of liquidity, solvency, capital structures, turnover and profitability.

In order to prompt and timely identify such negative moments, credit workers conduct constant monitoring of a loan transaction, comprehensively analyze the economic and financial activities of the borrower, carry out comprehensive checks of the availability, state and adequacy of the adopted security in strict accordance with the requirements of regulatory documents operating in the bank.

Sources of information on such loans and borrowers are: data analysis of the financial condition of the borrower, the list of documents for issuing loans and service of debt, the plan of measures for servicing the loan agreement; The results of the checks in the field, the information received from other divisions of the Bank informed about the credit portfolio of the head office and branches of the bank, incl. client; Publications in the media, etc.

The study of the structure of the balance sheet allows you to establish one of the possible causes of the financial instability of the enterprise, which led to its insolvency and, as a result, non-repayment of the loan (non-payment of interest). Such a reason may be an excessively high proportion of borrowed funds in the sources attracted to finance economic activities.

The identification of the trend towards an increase in the share of borrowed funds in the sources of education of enterprises' assets testifies, on the one hand, on the strengthening of the financial instability of the enterprise and increase its financial risks, on the other - on active redistribution (in the conditions of inflation and non-fulfillment in the period of financial liabilities) of revenues from lenders to the enterprise debtor.

If there is information about specific creditors of the enterprise and the deadlines for the fulfillment of obligations, appropriate lists are compiled. Particular attention is paid to the facts of overdue debt of the enterprise before the budget and on extrabudgetary payments.

The assets of the enterprise and their structure are investigated both for their use in production and their liquidity. The most liquid assets of the enterprise include cash in accounts and short-term securities; To the incidentalizable assets - fixed assets and other non-current assets. When analyzing the first section of the balance of the balance, attention should be paid to which trends to change are manifested in such elements (articles), as equipment to installation, unfinished capital investments. Since this part of assets is not involved in the production turnover, under certain conditions, under certain conditions, the increase in their share can adversely affect the effectiveness of the financial and economic activity of the enterprise.

The speed of turnover of the current assets of the enterprise is one of the qualitative characteristics of the financial policy being carried out: the more efficiently the selected strategy, the higher the speed of turnover.

However, the growth (absolute and relative) working capital indicates not only the expansion of production or on inflation enhancing, but also to slow down the rate of turnover, which objectively causes the need to increase their mass.

When studying the structure of reserves and costs, it is advisable to pay attention to identifying trends to changes in such elements of current assets, such as production reserves, work in progress, finished products and goods. Thus, the growth of reserves and costs can lead to a temporary increase in the value of the current liquidity coefficient. However, it is necessary to analyze whether this increase does not occur due to the unjustified distraction of assets from the production turnover, which will eventually lead to an increase in payables and deterioration of the financial condition of the enterprise.

High growth rates of receivables for goods, work and services, on promissory notes may indicate that this company actively uses commodity loans strategy for consumers of its products. Loaning them, the company actually shares with them a part of his income. At the same time, if the payment of the company is delayed, it is forced to take loans to ensure economic activities, increasing its own accountable debt.

The necessary element of the analysis is to study the results of financial activities and areas of use of profit. The initial information is contained in the "Report on Financial results and their use" attached to the Balance of the enterprise.

If an enterprise is unprofitable, the credit specialist concludes that there is no source of replenishment of its own funds for the enterprise of normal economic activities. If the enterprise received a profit during the economic activity of the enterprise, the proportions should be assessed in which the profit is sent for payments to the budget, deductions to reserve funds, the accumulation funds and consumption funds. At the same time, the presence of significant contributions to the consumption funds can be considered as one of the characteristics of the elected strategy in the implementation of financial activities. But with the insolvency of the enterprise, this part of the profit is a potential reserve of its own funds, which by changing the ratios in the distribution of profits between consumption and accumulation funds should be sent to the replenishment of working capital.

When considering a loan that manifests the signs of "problemability", it is necessary to find out the causes of their occurrence. It should be borne in mind that in some cases, these features may also have a different interpretation (different from the problem). For example, a change in the plans of the client's activities may be caused by a change in the overall market situation, which does not allow the borrower to work profitably on the market familiar to it. In the case, if the deviation of financial statements (for example, a decrease in revenue, the growth of accounts and receivables), it is necessary to analyze similar financial figures over the past years. If the change in financial indicators is associated with the seasonal nature of the business, this does not indicate a real impairment of the financial condition of the borrower as a whole.

Signs of the financial disadvantage of the borrower, from the point of view of the credit specialist, are:

misuse of loan;

falling turnover on the loan;

conducting lending with a growing outcome (dedication);

admission of negative information on the borrower by the economic protection of the Bank, business partners, other banks;

moral and physical aging of collateral;

deterioration of the financial condition of the guarantor or the guarantor of the borrower;

delay or incomplete payment of interest for the use of credit provided by credit funds.

Regardless of whether the signs of the "problem" of the loan of financial or non-financial, the responsible credit specialist should take the following measures that will develop a plan for improving the quality of the loan provided:

Conduct a full analysis of the financial support of the loan of the borrower and make a conclusion;

collect full information about what directions the work of the bank with this borrower is at risk;

daily monitor the receipts of funds at the expense of the borrower and in the case of a long lack of funds for the calculated (currency) account require explanation of the reasons;

check the correctness of the legal registration of all credit documentation, especially the loan refund documentation;

examine the possibility of obtaining the provision in case the loan is not provided.

If the credit is recognized by the "problem", the Bank's Action Plan is developed, aimed at returning a loan, which includes a number of events. They can be divided into two main groups:

1. Events on the organizational, financial and other assistance of the Bank by the problem borrower, contributing to overcoming the crisis and fulfill the obligations of the borrower to the bank, including:

development of a program for changing the structure of debt (revision of the schedule of payments to return loan debt and interest, change the forms of lending, etc.);

work with the leadership of the borrower to identify problems and search for their solutions;

appointment of managers, consultants and curators to work with the enterprise on behalf of the Bank;

expansion of the loan, issuing additional loans, debt transfer from "overdue" to the current;

an increase in the company's own capital at the expense of owners or other parties;

obtaining additional documentation and guarantees, etc.

2. Events, the direct goal of which is the return of the loan in the shortest possible time:

implementation of the provision;

sale of the debt of the borrower of a third party;

appeal to guarantors and guarantors;

adoption of legal measures;

registration of bankruptcy documents, etc.

There are four main ways to resolve the conflict of the "borrower-- bank" conflict with this group of activities.

The first thing that is possible to take in this situation is to revise the terms of the current loan agreement, for example, to change the interest rate and the timing of payments. In favor of revising the terms of the agreement, there is a relatively positive profitability of the enterprise of the borrower, as well as the fact that it is a regular customer of the bank.

The second way is to expand the loan, i.e. issuing additional funds. At the same time, the status of debt varies from "overdue" to "current". Thus, the Bank recognizes that the difficulties of the borrower are temporary, and further cooperation is beneficial.

The third way associated with the interruption of the current loan agreement is the sale of a part of the assets of the borrower to repay the debt. The decision to sell a part of assets is accepted by the client voluntarily, since it responds to the bank only by keyword.

The most radical, fourth, method is the elimination of collateral. When it realizes the relationship between the bank and the client, as a rule, is completely interrupted.

So that the diagrams of action with "problem" loans have been successfully implemented in practice, you need to establish a system of accounting, analysis, as well as credit risk management.

The only condition that should be respected by the creditor bank is a preliminary appeal with his written demand for the main debtor. The refusal of the latter from his satisfaction gives the lender the right to contact directly to the guarantor. It is also important that the guarantee is terminated after the expiration date specified in the contract. If such a term is not envisaged by the contract, it is considered to be equal to one year from the date of the onset of the execution of the principal obligation.

You should pay attention to foreign experience. Thus, in American commercial banks there is a whole system that helps identify the causes of problem loans, as well as to predict their very appearance. According to this system, the emergence of dubious loans leads factors dependent and independent of the bank. The first factors include all aspects associated with the credit process, i.e. with adequate analysis of the credit application, credit documentation, etc. The factors include the unfavorable economic conditions in the bank, in which the borrower turned out to be, natural disasters. The unfavorable economic conditions affecting the production activity of the borrower, American commercial banks specify as follows:

1. Most branded collars - the result of poorly organized management. Typical problems - lack of depth and diversity of management examination, unsatisfactory planned and accounting services, general incompetence. As a rule, imperfect management is associated with growth costs, when a dynamically developing company faces disadvantages of highly stolen management, which is not able to cover all the details of the economic process.

2. Small companies often turn out to be the problem of insufficient initial investments. This happens as a result of the underestimation of the total cost of a business in which this company is going to succeed, and the reassessment of the period through which profit is expected. This problem is recognized by the company too late when the share capital has already been exhausted, and lenders denied additional financing.

3. High level of financial coefficient and current expenses. The financial coefficient reflects the attitude of external long-term obligations to the corporation's own capital. With a high financial coefficient and in the fall in the volume of implementation, the costs of debt service increase dramatically. Under the current cost ratio is understood as the ratio of fixed costs for gross costs. Accordingly, with a high coefficient and with a decrease in the implementation of the implementation, the company feels a sharp decrease in profits.

4. When the company begins to unreasonably sharply increase the sales volumes of its products, then the risk of its non-payment increases. The reason is that the company is losing vigilance in the selection of buyers, not paying attention to their solvency. In this situation, the Bank undertakes restrictive measures aimed at suspending the growth of assets, insisting that the company slows down the sale of products to customers with dubious solvency.

5. New companies are faced with serious problems when entering the market. In a competitive struggle, the firm can choose both offensive and protective tactics. Offensive tactics are associated with the conquest of the market through various activities (price reduction, sales growth, etc.), which can even lead to temporary income loss. The purpose of protective tactics is to stabilize revenues by possible reducing the amount of implementation. If the firm does not adapt to the conditions of competitive struggle, it dies.

6. Many small firms are not in a state profitably develop in the conditions of a general economic downturn.

The listed factors affecting the deterioration of the company's economic activity are operating autonomously, regardless of the bank. But the bank, knowing where the firm has weaknesses, may have to give relevant recommendations that prevent the emergence of non-timely loose loans. Much attention to American commercial banks is paid to forecasting problem loans at the first and second stages of the loan process, i.e. Stages of the analysis of the credit application and its execution. Banking practice suggests paying attention to the following highlights that help in a loan process to identify potential problem loans:

recent financial failure of the borrower, discrepancies and contradictions in information about the borrower;

the borrower is looking for a partner, whose connections can be calculated;

the moral qualities of the head (struggle for power in the leadership among partners, between family members of the company owners, frequent shifts in the leadership, the plump, unbalanced character of the head, the desire of the borrowing leadership to speed up the credit process, put pressure on a bank employee);

the circle of suppliers and buyers from the borrower is not diversified, the control of the borrower behind its debtors is weakened;

the borrower refers to the industry that currently experiences problems;

simplified balance sheet, i.e. Assets and liabilities are not detailed by articles;

the borrower is not clear the purpose of the loan;

the borrower has no clear loan repayment program;

lack of backup sources of loan repayment;

the borrower does not have material (commodity, etc.) of security;

violations in the frequency of providing the borrower of reporting data on their economic activities;

deviations from the norm of the procedure for maintaining bank accounts (violations in the overdraft system, etc.);

revision of lending conditions; changes in the loan repayment scheme; request for loan prolongation;

deviations of indicators of the economic and financial activity of the company of the borrower from planned or expected;

deviations in the accounting and control system of the borrower.

1.2 Classification and accounting of problem loans

Potential and real and realistic problem loans require the application of such procedures as their classification according to the degree of risk, creating reserves for them, accounting for problem loans, as well as debiting loans. These procedures are described below.

Classification of assets. An increasing number of banks classify credit risks for each loan at the time of its provision. The initial classification and rating allow banks to balance the risk of their credit portfolios and report the priority areas of inspections. When any problems appear, the classification varies depending on the degree of risk and the probability of repayment of loans. Banks themselves classify their loans in accordance with the established provisions authorities. Such a classification can be adjusted if, as a result of the regulatory authorities, the verification will establish that the classification was too "soft". Problem loans can also be classified in terms of their "salvation".

Creating reserves. After problematic assets were identified, the bank should create adequate reserves against possible losses.

The rules for creating reserves and write-off loans may be mandatory and recommendental - it depends on the banking rules established by the supervisory authorities, as well as on taxation. In countries where there are no strict assets classification norms, banks often determine the level of loans for which interest accrual, the size of loans and loss reserves. What leads to inaccurate data in financial reports, to accumulate implicit losses and in the end to large financial costs.

Russian banks are required to create reserves to cover overdue loans. In addition, overdue loans have a negative impact on liquidity standards. There is a compensating factor, the essence of which is that an increase in reserves in case of non-repayment of the loan leads to a decrease in the bank's profits, and therefore, to a decrease in income tax. Reducing cash costs during the period of economic tension may be more important than the negative impact on liquidity indicators. However, as tensions decline, banks will want to reduce overdue loans in their balance sheet.

Accounting for problem loans. If the borrower does not repay the basic amount of loan and interest on time, then the bank must decide whether it should reflect a loan in accounting on the principle of accumulation. In the absence of mitigating circumstances, national banks in the United States in case payments are overdue more than 90 days, should abandon the principle of accumulation, and the entire amount of accrued, but not received interest should be written off from the bank's income account. If they do not do this, then their income will be overestimated. And although this requirement is valid in many countries, the practice from the country to the country varies greatly.

Table 1 Credit Policy Classification when managing loans in the US

Classification		Department of Banks
Reliable	Maintain and develop favorable relationships	Business department		quartal
	To compensate, increase the provision \\ pledge	Business department	semi-annual	quartal
Non-standard	Reconstruct or leave for the restoration of bank assets	Department of Loan Recovery	quartal	monthly
Doubtful		Department of Loan Recovery	quartal	monthly
	Close Credit to avoid losses	Department of Loan Recovery	quartal	monthly

Requirements for the principle of accumulation differ from the country to the country: from the requirement of adoption of immediate measures in the case of non-payment, and ending with the recommendations of the Bank to decide the question of taking action or not to make any measures at all. Accounting for interest payments on loans for which the accrual is not accrued, also differ in different countries. Some banks refer them to the account of income, more conservative banks reduce their amount of the total debt. Accounting can also differ depending on whether the borrower works in the private or in the public sector. In some countries, loans to the public sector enterprises are taken into account on the principle of accumulation, as it is believed that the state, in the end, will pay off the debt. In some countries, it is allowed to do only if there is a government guarantee. This leads to the fact that losses begin to accumulate, which leads to the insolvency of the bank and the need to appeal to financial assistance from the state, as well as to osse potentially "healthy" borrowers.

Accounting overdrafts. Overdrafts due to their flexibility are widely used in both developed and developing countries. However, the management of them is especially difficult, because in this case it is very difficult to determine what timely service is debt. Overdrafts are widely abused, capitalizing non-paid interest, which leads to overestimation of the size of income, capital and assets.

Credit Credit. The policy of banks in this area varies very much. Usually, the decision to write off or not to write off dubious or hopeless debts is adopted by the banks themselves, although in some countries it is mandatory. Banks can decide to write off the loan in case they cannot be "saved" or for tax reasons. To keep track of assets at their market value, partial write-off of loans can be applied. In some countries, banks do not write off even hopeless assets (creating a 100 percent reserve) on the grounds that write-off deprives them of the possibility of recovering the amount of the loan from the borrower through the court, and the borrower after the write-off behaves as if this commitment does no longer exist . In countries where the banks require to exhaust all the legal possibilities of repaying the loan, before it is written off in a taxable manner (such provisions exist in the legislation of many countries), the draft loan is stretched for an indefinite period.

In Russian banks, the following procedure for writing off hopeless debt is applied. According to the decision of the Credit Committee, agreed with the Board of the Bank, the corresponding protocol is issued on the basis of which hopeless loan debt, as well as other debt, unreal for recovery, can be written off from the balance at the expense of a reserve for possible losses on loans, and if it is lack of assignment to losses. The decision to write off hopeless debts can be taken only on the basis of the relevant decision of the judiciary and \\ or executive bodies.

The write-off of loan debt from the bank's balance, as is known, is not its cancellation. This debt is reflected in the balance within 5 years from the date of its write-off to monitor the possibility of its recovery in the event of a change in the property position of the debtor. At the same time, the Bank quarterly sends the debtor of the statement, confirming the presence of overdue principal and accrued, but not received in the period percent corresponding to the balances on off-balance accounts.

The amounts of debt debt on the principal debt and percentage are debited with the relevant off-balance sheet accounts upon their repayment, as well as after 5 years.

Credit can be written off from a balance by selling all rights to it with a third non-flared party, such as a collector agency. Usually, such a sale is carried out with a large discount to the book value, the difference between the two costs is reflected in the income statement and the size of the reserve is reduced accordingly.

For the bank, the advantage is that some incomes are still extracted from the loan, and the disadvantage is that the transfer of all rights to the deposit may turn into a serious problem if the documentation is incorrect. There is a possibility that the purchased loan will be returned to the bank if it is impossible to ensure the purity of the transfer of collateral.

Considering that the recovery of overdue debts it is necessary to use professional skills and skills other than those requested banking employees (lawyers with bankruptcy business experience or telephone operators who know how to deal with defaulters) The transfer of a loan to the collector agency allows you to take advantage of specialization and savings on the scale that ultimately leads to an increase in the cost of a problem loan.

Currently the most liquid market for overdue loans is the retail sector. The portfolio may contain from tens to thousands of loans. Few banks have sufficient experience in selling overdue loans to be confident in their assessment of the portfolio. Accordingly, large collector agencies offer to give them a loan for outsourcing. The collector agency takes a fee for covering its costs, and the resulting balance of credit value is divided between the collector agency and the bank.

The agreement on such a transaction may be issued in different ways, therefore, the reflection of loans on the balance may be different. In most cases, loans remain on the balance sheet of the bank.

In Russia, the overall final amount of bad debts still remains the main unknown in the banking equation. After all, instead of recognizing the loan, the banks agree with the borrower of its restructuring, because it is looking for schemes that allow you to not reflect damages in the balance sheet, do not reduce your own capital and go to the standards. However, according to experts, every third such loan will be default, and the banks themselves do not exclude that half of the restructured loans can be non-returnable.

In addition, even if a restructured loan and will be served without delays to be serviced by a borrower on new conditions, the flow of payments to the bank in the short-term perspective is still reduced - otherwise, why do the borrowers go to restructuring? The more banks restructure debts, the less they have income, the worse they have a liquidity situation.

Only after the bad assets are withdrawn from bank balances, the provision of state assistance will make sense: the Bank will have an absolutely healthy loan portfolio, confidence in its clients and counterparties on the market will be restored to full, and nothing will prevent him further credit activities.

Under the crisis, any state has to support the banking system of capital infusion. But the increase in banking capital with the help of public funds cannot restore the performance of the banking system. The real sector companies have accumulated huge debts that cannot be serviced in the changed conditions, but will not partially be able to return never. Exit from this situation - both banks, and borrowers should divide the burden of damages and clear their balance sheets.

1.3 Characteristics of the market of non-working loans in Russia and abroad

According to the Rus-Rating, the volume of non-working loans in the Russian banking system as a whole is estimated at 2 trillion rubles. ($ 67 billion) at the book value, or 9.9% of all existing loans. By the end of this year, the volume of such loans will reach 2.1 trillion rubles. ($ 70 billion or 10.5%). Evaluation, the volume of non-working corporate loans in the Russian banking system - 1.6 trillion rubles. ($ 53 billion or 9.9% of all corporate loans), retailers - 370 billion rubles ($ 12 billion or 10.2%). On the balance of banks included in the TOP-30, there are 80% of all non-working loans in the banking system. The market of non-working loans in Russia is similar to European: mainly the portfolios of retail loans are traded. It is estimated that its volume is about $ 1 billion in carrying out (2% of all non-working loans or 9% of all non-working retailers). In the future, trade in portfolios of problem corporate loans in Russia is most likely revived. Rubing agency Rus-Rating "Review and Evaluation of Problem Credits: Market Potential."

World experience shows that we need to develop a banking system with an accelerated pace.

Fig.1. Share of bank loans in economic activities

From the given data it is clear that bank loans occupy in the resources of Russian small and medium-sized enterprises only about 18%, while in Germany 78% and 43% in the United States. When buying housing, the share of banks is 12%, 85% and 82%, respectively. Finally, investments in fixed assets are funded at the expense of bank loans in Russia by 9%, in Germany by 42%, in the United States by 33%. These calculations show the lag of the banking system of Russia from other countries.

In the field of mortgages, many issues are solved, mortgage develops. But in general, mortgage lending, like housing construction, are at an extremely low level. Therefore, the first priority is to reduce the cost of building housing and to expand it. Housing construction should be a locomotive that will seriously speed up the economic development of the country, and at the same time will accelerate the development of lending, especially mortgage.

When considering the prospects for the development of lending, first of all, requires a response to questions: what resources are banks, and what is the prospect of their increase?

Over the past one and a half years, various factors have been operating in relation to the resource base, both in the direction of increasing and towards the decline.

Fig.2. Dynamics of some articles of liabilities of the banking system of the Russian Federation from 01/01/2009 to 07/01/2010, billion rubles (according to the cash flow methodology)

From the above graph, it can be seen that the greatest reduction in the resource base has recently happened due to repayment of loans to the Bank of Russia. At the same time, these resources were exquisied by the vast attraction of legal entities (451 billion rubles. For 2009 and the first half of 2010) and individuals (2528.3 billion rubles for the same period).

In general, the resource base has practically not changed. Moreover, in the conditions of stagnation of the loan portfolio, banks have excessive liquidity. Russian banks as of the end of June 2010 had highly liquid assets totaling 2.2 TRL rubles, 78% of which are considered redundant. This problem is not only Russian: US banks only on deposit accounts in the Fed hold $ 1 trillion (7% of total assets), whereas before the crisis, this value did not rise above $ 370 billion.

The situation is aggravated by the fact that in the post-crisis period, banks restructured loans, postponed their repayment for a later period. As a result, a significant part of resources is involved for long terms, so the discharge of credit resources has slowed sharply.

Figure. Structure of a corporate loan portfolio (for timing)

As can be seen from this pattern, the loans for granting more than a year before the crisis occupied 50% in the corporate loan portfolio of banks, and now more than 70%. That is, at least 20% of loans to legal entities (2.5 trillion rubles) were restructured.

Banks were in a difficult position. Emergency resources available do not allow them to continue lending long-term projects. They are forced to maneuver, lending customers for a short time. The share of short-term loans declined, that is, in the economy, the turnover of credit resources has decreased and the threat of cash ruptures in the short term has emerged. Reducing short-term lending by 1.1 trillion. Rub. It hurts for small and medium-sized businesses (61% of all loans in this type of borrowers is granted for less than a year).

The main problem is to develop a program to include all sources in the resource base of banks. This should be a comprehensive, interconnected action program. It is important to maximize the use of internal resources for the development of lending, and not to climb into the debt dependence of other countries.

According to the reports of Ukrainian banks with foreign capital, the share of problem loans (Non Performing Loans - loans overwhelming over 90 days) at the beginning of 2010 ranged from 12 to 36%, which is significantly higher than the official data of the NBU (9.4%). For comparison, the Eastern European "daughters" of international fin. Groups show NPL from 4 to 12%, in Russia the level of problem loans does not exceed 12%.

In the report published last week, Raiffeisen International Ukraine "Honorary" ranks first in terms of problem loans (NPL) with an indicator of 23.6%. For comparison, in Russia, Raiffeisen International "Problems" is only 10.3%, and the average group in Central European countries is at the level of 6.5%. A similar situation with the Hungarian OTP Bank, his "daughter" in Ukraine NPL is 22.3%, in Russia - 12.4%, Hungary - 7.9%.

Banks are inevitably faced with borrowers who are not able to give their debts. In this regard, procedures were developed to collect such debts and the implementation of pledge on them. Participation in these procedures of non-bank investors, as well as third parties (specialized collection agencies), is a relatively new phenomenon. It is it that leads to the development of active and transparent trade in problem loans. The financial crisis speeds up this process. Since during the crisis, the number of problem borrowers increases sharply, then the existing methods of working with them are not sufficient.

The overall trend characteristic of Russia, namely the focus on retail, and not corporate portfolios, is close to the Western norm at this stage of the development of the global economy.

Trade of problem debts is a relatively new phenomenon.

Table 2 Prof. Cristophole Chaolast "Economic dimension of non-working loans - market dynamics" development of the market of non-working loans in the world

USA end of the 1980s.	Japan is the beginning of the 1990s.
Crisis in the sector of loans and savings Sale of loans for cost compensation	Economic problems Explosion bubble real estate Rearrangement of the banking sector
France - 1995	Italy - the end of the 1990s.
Perestroika Economy	National crisis Economic decline in Europe Rearrangement of certain industries
Southeast Asia - the end of the 1990s	Taiwan - the beginning of the 2000s.
System Economic and Banking Crisis Rearrangement of banking and real sectors	Financial "bubbles" in retail lending and real estate markets Risks associated with Southeast Asia and China

The history of the development of non-working loans suggests that the crisis that generated a large amount of problem loans also leads to the development of the problem loans. Naturally, with a sufficiently large sentence, third-party organizations appear, specializing in working with problem loans, and for banks a new way to effectively manage disturbing debts.

If Russia goes along the same way of development, it is possible to expect the growth of trading portfolios non-working loans between banks.

The development of production is unthinkable without a banking system and its most important function - lending.

The loan provides steady production growth. Practice of recent years also confirms this thesis. In recent years, the loan portfolio has explicitly stagnant.

Fig.4. Dynamics of the loan portfolio of Russian banks, billion rubles.

These data are talking about the unfavorable state of credit. Difficulties in the banking system will be maintained in the near future. According to the estimates, loans in the amount of 3 trillion were restructuring. Rub.

That is, many of these loans moved from the category of brief and medium-term in long-term and essentially problematic. As a result, it turns out that at least 20% of loans are potentially "bad." And they can declare themselves over the next 2-3 years. At the same time, according to the Central Bank, overdue debts in September amounted to 937 billion rubles. (5.4% of the total amount of loans)

Fig.5. Overdue debt, billion rubles.

From the data given by the Central Bank of the Russian Federation and reflected in the chart, the trend of the growth of non-refundable loans is traced. With the sharp increase in the arrears portfolio, it is observed from mid-2008 to the beginning of 2010. Next, we see the stabilization of growth on the volume, which can be associated with the overall stagnation of the lending market.

The share of overdue loans in the portfolios of Russian banks by the end of the year can grow to 10.5 percent, since against the background of improving the economic situation, lenders boldly write off an increasing amount of bad debts, testifying a study prepared on request of the International Finance Corporation (IFC).

According to the Center for Economic Research, MFPA, the potential volume of additional demand for loans by the end of 2010 is estimated at 1.4 trillion. rub., What corresponds to the volume of excess liquidity accumulated in the banking sector. According to a pessimistic scenario, the volume of the credit market for the year "will see" 12%, according to an optimistic one - will grow by 19%. Apparently, corporate lending will be restored first, in the second place - retail lending. As expected, the decision of the main problem of the current year (overdue loans) is postponed to 2011-12. The statistics of the credit cycle accumulated over 12 years allows to make assumptions about the upcoming dynamics of "bad" debts. The consequences of the 1998 crisis were reflected in the growth of the share of problematic and hopeless loans in 1999 to 15.8% of the loan portfolio. Low quality loans (loans amount with III according to V quality category with high levels of non-return) rapidly increased during the year and reached a maximum of 19% in the same 1999. In general, the permission of the problems of "bad" debts took three years - from 1998 to 2000. Thus, the care of the current credit problem is expected not earlier than 2012, they believe in the CEI MFPA. In the previous crisis, the level of reserves for possible losses decreased to 70% of the necessary, reflected the problem of profitability and adequacy of banks. The subsequent write-off of "bad" debts and the clearing of balances led to the accumulation of redundant reserves, which reached 257% of the minimum required level. Their dissolution led to an increase in the yield of the banking sector and the rapid increase in its own funds. The current adequacy of reserves for possible losses is slowly growing since the summer of 2009, but remains insufficient. By March of the current year, the adequacy of reserves, according to CEI MFPA estimates is 83% of the required minimum level. Saving reserves due to the preferential regime of reservation of the Bank of Russia is about 320 billion rubles. In general, leading banks have adequate reserves for possible losses.

Growing problem loans forced banks more and more attention to the consumer lending market. This retail lending segment is focused on a short period of repayment of loans and is designed mainly to one-time lending to customers for shopping. Despite the low level of delay in the loan and attractiveness of such a business, he will not yet be able to replace corporate lending across the banking system. An obstacle is an economic restriction of consumer lending growth.

To the global crisis, Russian banks did not have to engage in non-working loans on a scale. Neither individual banks nor the system as a whole possesses a sufficient number of experienced and prepared specialists in the field of problem loans. And economic theory and practice shows that the efficiency of managing large amounts of financial transactions in banks will increase in the presence of groups of specialists. The lack of specialists in managing non-working loans in most Russian banks indicates a non-optimal strategy for managing non-working loans. At the same time, a small number of qualified specialists and the unprecedented volume of non-working loans arising from the crisis contributed to the emergence of specialized firms to work with this category of loans.

Chapter II. Features of the work of a commercial bank with problem loans (on the example of LLC "Home Credit and Finance Bank")

2.1 Bank credit policy

Credit Policy is a strategy and tactics of the bank in the field of credit operations. The Commercial Bank's credit policy is a system of monetary activities conducted by the Bank to achieve certain financial results and is one of the elements of banking policy.

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Individual decisions of banks on working with problem borrowers

This approach is to form a special department and selection of employees, the main purpose of which will be the refund of overdue credit funds. It is so effective as the time consuming. It is necessary to develop not only a comprehensive system of working with problem borrowers, but also to embody it, given the large number of costs and legal nuances.

At the first stage, the client who has overdue obligations to the Bank is notified with the help of an SMS message or a telephone call. If the sensual voice of the employee of the credit department did not have awakened consciousness in the borrower, he is sent to the postal service. After 90 days, outstanding credit obligations are transferred to the category of problem. Another six months of annoying communication and the case goes to court, which will cause an unscrupulous client to answer.

Collector agencies

There are two types of interaction of banking institutions with collectors - outsourcing and cession. Outsourcing is the transfer of legal rights to recover debt to the hands of collector firms. The bank returns the amount of debt, the collector receives the percentage for the operational solution to the problem. Cessia is the sale of debt obligations - the bank receives its remuneration satisfying the amount, the buyer will now have to deal with the debtor himself, who must compensate for and the amount of purchase, and the profitability of the investment.

There is no such thing as outsourcing in Russian legislation, therefore, the regulation of this process occurs on the basis of a number of civil acts. In case of successful permission of the current situation, the Agency returns a banking amount of debt with the exception of the interest rate, which is charged as payment for collector services.

The efficiency of work is defined as the approaches of the collectors themselves to their activities (sometimes it can wear an aggressive and causing character) and the Bank's policy in the field of lending services - some borrowers simply have nothing to take in some cases.

Sale of problem obligations to third parties

Debt liabilities can be beneficial to sell - this conclusion has long come throughout the civilized world. He began to take care of Russia, where banks are massively exposed to the sale packages of overdue loan agreements with astronomical amounts - in 2012, the total amount of transactions amounted to 4.5 billion dollars.

Creating a single "problematic" bank

Another possible version of working with unreliable borrowers is the creation of a state bank, the main function of whose activity will be the buying of problematic assets of private financial institutions. International experience shows that government services have significantly more levers of influence on their own citizens rather than in private structures. Sweden, a pioneer in the field of creating a "bad" bank, was able to return about a third of the funds, which at the beginning of the 90s were already considered written off from the real sector of the economy.

Russian realities indicate that there are at least two fundamental problems in the way of creating such structures:

Determination of the value of problem assets, which will be ready to pay the state.
Changes in banking approaches to consumer lending, otherwise the total amount of debt will continually grow, while the government becomes a pillow to repay excessive risks.

The creation of private "bad" banks as every banking institution and their associations looks possible. This will continue lending to the Russian economy in full, while problem assets will not create any pressure on these processes.

Some system conclusions

Different strategies for banking institutions may mitigate the effects of the World Financial Crisis, but the essence of the problem lies "not in balls, but in the heads." So far, both banks and the state will create uniform conditions for the loan service market, the money will continue to enter the accounts of persons who will not be able to continue to ensure their obligations on them. What will lead both negative consequences for the banking structures themselves, which will have to coope their own programs and for the economy, the growth of which will be artificially slow due to short-sightedness and banal greed.

Coem

To ensure the maximum level of profitability of the loan portfolio, banks must continuously monitor its condition and quality. The main goal of such control should be minimizing the risk of the emergence of problem debts, ensuring the return of the loan and interest by the borrower and pay for the use of them. Difficulties with repayment of loans may arise in various ...

Bank work with problem loans, its effectiveness (abstract, term, diploma, control)

Coursework

On the topic: "The work of the Bank with problem loans, its effectiveness"

Chapter 1. General Characteristics of Credits and Problem Credits

1.1 Main types and forms of loans

1.2 Causes of problem debt

Chapter 2. Bank loan portfolio as the most important element of bank credit operations1

2.1 Analysis of the composition of the loan portfolio of the bank, assessing its quality

2.2 Credit portfolio analysis as a means of preventing problem loans

Chapter 3. The work of the Bank with problem loans and ways to overcome the problem debt

3.1 Claim-claims of a bank with problem loans

3.2 Restructuring methods of problem debt

Conclusion
Bibliography
Chapter 1. General Characteristics of Credits and Problem Credits

1.1 Main types and forms of loans

The loan is a loan in monetary or commodity form on the conditions of return, which is provided by a bank or legal (or physical) by the lender to another person - the borrower. Borrowers for using a loan pay percentage. The interpretation of the loan from the point of view of crediting entities was filed in the banking encyclopedia: a loan is economic relations that arise between the lender and the borrower about receiving the last loans in cash or commodity form on the terms of return within a certain period and, as a rule, with the payment of interestSharyeva and . O. Management? Problem? debts in? banking sector // Banking. - 2011. - №? 7. - P. 13.. Operations from the provision of loans belong to active operations of the Bank.

There are three main forms of the loan:

§ commodity loan, when buyers receive goods or services with a delay of payment;

§ cash;

§ Warranty loans.

In order to have a complete view of the loan and its kinds, it is necessary to classify it in different signs. Table 1.1 The above classification of loans.

Table 1.1 Types of loans

1.2 Causes of problem debt

Problem loans are loans that did not spend one or more payments in a timely manner, significantly reduced the market value of the provision, the circumstances arose, behind which the bank would doubt the return of creditAksandrov A. Yu. Signs of "problematic" credit and the factors of its appearance // Financial Market and Credit Banking System of Russia (Issue 9): Collection of Scientific. Labor. - SPb.: Publishing House Info-yes, 2008. - P. 146 - 150. - 0.2 P.L.

Difficulties with repayment of loans may arise for various reasons, the most common of which is:

§ Bank error when considering the credit documentation;

§ assessment of the creditworthiness of the borrower and the development of a loan agreement, insufficient further control;

§ ineffective work of the client who received a loan;

§ problems that neither banks or borrowers do not control.

Factors may indicate the emergence of difficulties regarding the return of the loan:

- non-payment of the borrower of interest, the irresponsibility of the principal amount of the debt, or its parts;

- adverse change in the cost of securing a loan;

- lower than envisaged, admission to the borrower's account;

- Financial indicators that reflect an unfavorable position for the borrower.

Among the general features that may indicate the emergence of problem debt, one should also be allocated:

Chapter 2. Bank loan portfolio as an essential element of bank credit operations

2.1 Analysis of the composition of the loan portfolio of the bank, assessing its quality

The loan portfolio is not just a passively formed set of loans, but the result of active, purposeful actions of the bank.

The loan portfolio is an economically sound and structured set of loan agreements and credit obligations, which is the result of targeted management decisions adopted in accordance with the requirements of the Bank's credit policy and bank supervision bodies.

Before debt for credit operations, which make up the bank's loan portfolio belong:

W Urgent deposits (deposits), which are posted in other banks;

W loans that are provided by another bank; funds at the request of other banks (active residues);

W claims that have been acquired for factoring operations of the economy;

W loans, which are provided for repo operations to business entities; loans that are provided for accountable bills of business entities;

W loans to current activities that are provided to the subjects of the management of the economy;

W loans to investment activities, which are provided to subjects to the management of the economy;

W Mortgage loans, which are provided to subjects of farming;

W loans that are provided to state authorities;

W loans for current needs, which are provided to individuals; Financial leasing (lease), which is provided to individuals;

2.2 Credit portfolio analysis as a means of preventing problem loans

Analysis of the loan portfolio is another way with which you can detect problem loans. During analysis you need:

· Detect a part that issues problem loans in the total amount of the loan portfolio;

· Determine the number of overdue, prolonged, dubious and hopeless loans;

· Determine the dynamics of overdue loans; determine the total amount of problem loans and interest behind them;

· Analyze the structure of overdue debts in the amount of the Bank's customers;

· Analyze the events for the return of problem debt.

Banking institutions determine the most acceptable structure of the loan portfolio. The structure of the bank's loan portfolio is considered satisfactory, the proportion of problem loans is not greater than 30%. However, banks can establish more stringent criteria for assessing the quality of the loan portfolio, in particular: to establish separate limit values \u200b\u200bof overdue, dubious and prolonged loans and the like.

The greatest weight in the bank's loan portfolio should be given to overdue loans. The volume and duration of overdue debts are analyzed depending on the time of its occurrence and part of each group in the total amount of overdue loans. At the same time, overdue loans are advisable to group over the delay periods:

· From 1 to 30 days;

· From 31 to 90 days;

· From 91 to 180 days;

· Over 181 days.

Chapter 3. Bank work with problem loans and ways to overcome problem debt

3.1 Claim-claims of a bank with problem loans

problem Bank Credit Debt
If there is no agreement between the borrower and the banking establishment on the deferment of the loan payment, then the bank can turn off the credit debt from the borrower in claim lawsuits.
The claim is a written requirement of the Bank on the implementation by the Borrower (guarantors, guarantors, insurers) in the voluntary order of obligations to the Bank, which is presented to the obligations of persons in accordance with applicable law.
The right to present a claim to the borrower arises in the bank when its rights and legitimate interests are violated, that is, the facts of the irregularity of the loan or non-payment of interest on the deadlines established by the loan agreement, non-fulfillment of other conditions in the contract. In writing, the claims indicate such information:
§ Full name and postal details of the bank and the borrower;
§ Claim number, its writing date;
§ number and date of the concluded loan agreement;
§ loan amount;
§ interest for the use of the loan;
§ loan return period;
§ debt settlement (loan amount, interest, penalties);
§ List of documents that are added to the claim.
The claim also contains a prevention of a borrower that in case of not receipt of the answer within 20 days, the Bank conveys a loan to court.
From the borrower, there are such steps in response to the complaint:
v recognize duty with a borrower's proposals regarding loan return paths;

3.2 Restructuring methods of problem debt

In the process of working with problem loans, the Bank may apply such basic debt management methods: rehabilitation or liquidation of the borrower.

The rehabilitation method is to develop a common activity plan with a borrower upon returning a loan.

The liquidation method means the return of the loan by conducting a bankruptcy procedure and sales of the borrower's assets.

In the event that the borrower and the Bank are confident that financial difficulties are a temporary phenomenon, banking institutions may offer customers to the rehabilitation of credit debt. At the same time, banking institutions can agree with the problematic client and revise the time or debt repayment procedure. In any case, the issue of rehabilitation of problem debts for each borrower is solved individually.

The rehabilitation process consists of several stages:

- collection and preparation of information;

- meeting with the borrower;

- development of an action plan;

- debt restructuring;

- Permanent monitoring of the plan.

The collection of information is based on the study of tax declarations, lawsuits, documentation, regarding the loan. Specialists from the development of loan return plans should meet as soon as possible with a problem borrower and discuss possible solutions. In the process of interviewing, it is necessary to determine whether the prepared borrower is to further cooperate with the Bank and the adoption of cardinal, sometimes painful, decisions, and whether there is a potential financial and material base for successful implementation. Bank employees must evaluate the quality, competence and honesty of the debtor's management, visit the company and in place to evaluate its property and activities.

capital adequacy by reducing the riskiness of assets). A prerequisite for securitization is the standardization of assets, which makes it possible to further distribute homogeneous assets on the trench, depending on reliability. T. 2. - SPb.: Publishing House SPSUEF, 2012. - P. 66 - 70. - 0.3 P.L.

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