after that.
In addition to debt division
into 5 debt groups
Maybe you are interested!
-
Current Status of Credit Risk Management at Vietnam Bank for Agriculture and Rural Development -
Improving the effectiveness of credit risk management at the Bank for Agriculture and Rural Development - Hanoi Branch - 2 -
Credit risk management of Vietnam Bank for Agriculture and Rural Development - 10 -
Credit risk management of Vietnam Bank for Agriculture and Rural Development - 31 -
Credit risk management at the Bank for Agriculture and Rural Development Gia Lam - Hanoi - 33
according to the provisions of the Decision
493/ĐQ-NHNN, banks need to classify debts according to many other reasons such as: subjective and objective reasons, according to the ability to recover, the ability to recover, overdue debts with the possibility of losing capital, from which there is a basis to find measures to overcome and limit risks thoroughly within their capacity.
Overdue debt and bad debt arising from subjective factors from credit officers and other departments, the Bank must take strong measures, handle them resolutely according to administrative discipline and material compensation, only then can we improve the sense of responsibility for work and limit most credit risks.
Second: Perfecting credit risk management tools
Currently, there are many tools for credit risk management that many banks in the world have applied. Banks should choose
Select and apply a credit rating model and quantify risks to suit your conditions (such as the quality model based on the 6C factor; Z-Credit scoring model; Moody's and Standard & Poor's rating models, consumer credit score model .... These models are effective tools for managers to make the right decisions when deciding to lend. In the process of applying the model, it is necessary to improve the practicality and accuracy of the consumer credit rating system.
The department conducts credit ratings periodically and maintains them continuously as a basis for building customer policies on credit limits, applying appropriate loan guarantee policies, and credit orientations for each customer. Credit ratings are an effective and scientific tool in credit risk management through quantifying assessments and making appropriate decisions .
Third: It is necessary to separate the utility department into specialized departments.
different departments such as customer relations department (focusing mainly on marketing activities, customer contact, loan creation), credit risk management department (conducting independent credit appraisal and giving opinions on loan granting as well as monitoring the implementation process of loan decisions of the customer relations department), operations department (conducting record keeping, entering into computer systems and managing loans ...). The restructuring of the business apparatus
Such credit is to ensure objectivity in credit granting activities.
application. The separation of the marketing department and the appraisal department helps make lending decisions more objective, and thanks to deeper specialization by function, credit analysis and criticism is more in-depth and accurate, helping to identify potential risks and take appropriate preventive measures. With such an organizational structure, a continuous and parallel inspection and monitoring mechanism will be created during the lending process, detecting and minimizing post-lending risks that the internal control mechanism of many banks does not.
Current products still have many limitations.
Fourth : Complete the credit handbook and consider the credit handbook as a credit operations manual for credit officers.
The Handbook is considered a mandatory handbook that all staff must comply with the regulations contained therein. Any changes in policies, regulations, and procedures from the State legal system as well as relevant legal documents of the Bank
All tools and equipment must be updated regularly and promptly.
When there is any change in the content of the handbook, the Bank organizes training on the new regulations so that staff can understand and correctly apply those regulations.
Five is: Improve the quality of appraisal and the effectiveness of inspection activities.
like, control loan.
In the customer assessment stage, the Application Officer must always put the following