The credit policy of the bank is developmentmeasures aimed at improving the ratio of risk and return from operations for the provision of loans to individuals and other business entities.
The development of a credit policy based onmacro- and microeconomic factors. That is, a specialist assesses the country's situation at the macro level, concludes that the stability of the national economy and the extent to which the state supports this or that sector. An important role is played by the growth rates of inflation, the dynamics of interest rates and the ability to compete with other lending institutions at the international level. In this case, it is precisely those factors that banks can not change that are considered.
To microeconomic, or internal, factorsit is possible to carry the study of intra-bank processes or relations between individual credit institutions. At the same time, such factors as the volume of attracted funds, solvency, liquidity, profitability are subject to study. These indicators characterize the bank's success in working with counterparties. And this requires qualitative selection of personnel, because a qualified employee, being the face of the bank, creates his reputation.
The credit policy is implemented with a view toachieve many tactical results, but the highest priority is to get the maximum possible income. Multiplying profits is the main objective of the functioning of any commercial enterprise. Focusing on the developed strategic plans, the credit policy is based on specific tasks, including close supervision and control over the implementation of measures to expand creditworthiness, as well as the choice of the purpose of the loan or loan.
When a monetary credit policy is drawn upbank, there is a division into work with business entities and individuals. The highest level of income is brought by legal persons, therefore, the employee of the credit institution should make every effort to conclude long-term cooperation. However, not all organizations can become first-class clients, because banks have their own list of requirements for this category of consumers. As a rule, the most important criteria are reliability, solvency, transparency of reporting, an exceptionally positive reputation in the market, the size of own capital, the level of liquidity and profitability.
If a loan is needed for an individualthe credit policy is aimed at studying the personal qualities of the manager, revealing the degree of trust on the part of counterparties. The determining story, of course, is the credit history of the founder of the company.
The issuance of loans to individuals is made byother criteria. The Bank proposes many different lending proposals. Due to this, the client gets an opportunity to choose the best conditions for granting and repaying a loan. Often, the size and terms of lending are determined on the basis of the level of wages, the age of the payer and the reliability of guarantees or sureties.
The most important thing is to understand that the credit policyis necessary to minimize the risk of the parties. After all, the bank, carrying out operations to borrow funds, has a risk of non-return due to unwillingness or inability to pay the body of the loan and interest on it. Accordingly, the higher the level of risk, the greater the percentage of the transaction will receive a credit institution. The staff's task is to rationally combine these two factors.
With a well-organized banking systemthe credit policy is subject to regular revision, since the changing market conditions require the flexibility of the behavior of banks. The popularity and competitiveness of the organization depends on the speed of their response to a particular problem.
