Methodical approaches for reducing the credit risk

Banking is inevitably associated with risks. No matter what efforts the bank makes to minimize risks, they will always exist – only question extent. Lending operations are among most profitable types of banking, but a high level risk. The instability economic situation in country, imperfection legal framework this area necessitate detailed study problems minimizing credit It should be noted that choice methods risk management quite relevant today. Credit important task any bank, and choosing right method increase stability, reliability competitiveness banking system, which positively affect overall condition country. oldest system risks occupies prominent place. necessary work out an effective using tools recognized by world community given possibility their transfer from investors. starting point development latest creation regulatory regulate process. improve existing methodological develop new for concentrating advantages assessment methods, create single assessing borrower's creditworthiness, not mention certain algorithm banks form procedures. adopt experience foreign management. developed countries, based on all procedures, multifactor analysis creditworthiness potential borrowers.