Monetary policy-a set of activities of the central bank and government in the field of monetary circulation and credit.

The monetary policy of the central bank (monetary policy) is a set of government measures that regulate the activities of the monetary system, the loan capital market, the procedure for non-cash payments in order to achieve a number of general economic goals: price stabilization, economic growth, strengthening the monetary unit.

Monetary policy is an essential element of macroeconomic policy.

All impacts are reflected in the value of the total social product and the national product.

The main objectives of the state monetary policy:

• 1. Curbing inflation
• 2. Ensuring full employment
• 3. Regulating the rate of economic growth
• 4. Softening cyclical fluctuations in the economy
• 5. Ensuring the sustainability of the balance of payments
• 6. Principles of monetary and credit regulation of the economy

Monetary regulation of the economy is carried out on the basis of the principle of compensatory regulation, which implies the following:

• 1. the policy of monetary restrictions, which involves limiting credit operations by increasing the reserve funds for participants in the credit system in the central bank; raising the level of interest rates; limiting the growth rate of the money supply in circulation compared to the mass of commodities;
• 2. policy of monetary expansion, which involves stimulating credit operations; reduction of reserve norms for subjects of the credit system; falling lending rates; acceleration of the turnover of the monetary unit.

The development and implementation of monetary policy is the most important function of the central bank. It has the ability to influence the volume of money supply in the country, which in turn allows you to regulate the level of production and employment.

The main tools of the central bank in the implementation of monetary policy:

Regulation of official reserve requirements is a powerful means of influencing the money supply. The amount of reserves (the part of banking assets that any commercial bank is required to keep in the accounts of the central bank) largely determines its lending capacity. Lending is possible if the bank has enough funds in excess of the reserve. Thus, by increasing or decreasing reserve requirements, the Central Bank can regulate the lending activity of banks and, accordingly, influence the money supply.

The main tool for regulating the money supply is the purchase and sale of government securities by the Central Bank. When selling and buying securities, the Central Bank tries to influence the volume of liquid funds of commercial banks by offering favorable interest. By buying securities on the open market, he increases the reserves of commercial banks, thereby contributing to an increase in lending and, accordingly, an increase in the money supply. The sale of securities by the Central Bank has the opposite effect.

Traditionally, the Central Bank provides loans to commercial banks. The rate of interest at which these loans are issued is called the discount rate of interest. By changing the discount rate of interest, the central bank affects the reserves of banks, expanding or reducing their ability to lend to the population and enterprises.

The factors that affect demand, supply, and interest rates can be grouped under the heading "monetary policy instruments".

The Central Bank sets minimum interest rates for its operations. The refinancing rate is the rate at which a loan is granted by commercial banks, or it is the rate at which the Central Bank rediscounts their bills.

The Bank of Russia may set one or more interest rates for various types of transactions or pursue an interest rate policy without fixing the interest rate. The Bank of Russia uses interest rate policy to influence market interest rates in order to strengthen the ruble.

The Bank of Russia regulates the total volume of loans issued by it in accordance with the accepted guidelines of the unified state monetary policy, while using the discount rate as an instrument. Bank of Russia interest rates are the minimum rates at which the Bank of Russia carries out its operations.

The interest rate policy of credit institutions, being part of the national monetary policy, has a significant impact on the development of the national economy and its stability. Commercial banks are usually free to choose specific interest rates on loans and deposits and use some indicators reflecting the state of the short-term money market as benchmarks in the implementation of interest rate policy. On the other hand, the central bank, in the process of targeting, sets intermediate monetary policy goals that it can influence, as well as specific tools to achieve them. This may be the refinancing rate or interest rates on central bank operations, on the basis of which the short-term interbank lending rate is formed, etc.

The problems of identifying the factors influencing the interest rate policy of commercial banks have been of concern to specialists since the formation of economic theory. However, answers to many questions have not yet been found. Modern studies aimed at identifying the optimal rules for the implementation of national monetary policy are based to a greater extent on econometric models.

In theory and practice, methods of direct and indirect regulation of national monetary policy are considered. From the point of view of interest rate policy in the narrow sense (rates on credit and deposit operations, the spread between them), the instrument of its direct regulation is the setting by the central bank of interest rates on loans and deposits of commercial banks, indirect instruments are the setting of the refinancing rate and the rate on central bank operations in the money and open markets.

Interest rates on loans and deposits as instruments of direct regulation are not often used in world practice. For example, the People's Bank of China sets rates that are considered indicative for the banking system. At the same time, the bank's policy is aimed at reducing the spread, which in the first half of 2006 was 3.65%, and by the end of 2009 - 3.06%, which indicates sufficient liquidity of the Chinese banking system.

In many countries, including Russia, the refinancing rate has become more of an indicative indicator, giving the economy only an approximate guide to the value of the national currency in the medium term, since it has been in an unchanged state for a long time, while real rates in the money market change every day.

According to existing legislation, commercial banks are required to allocate part of the funds raised to special accounts with the Central Bank.

Since January 2004, the Central Bank has established the following amounts of deductions to the mandatory reserve fund of the Bank of Russia: for ruble accounts of legal entities and foreign currency of citizens and legal entities, as well as for ruble accounts of citizens - 3.5%.

The maximum amount of deductions, i.e., the required reserve ratios, is 20% and cannot change by more than 5% at a time.

This ratio allows the Bank of Russia to regulate the liquidity of the banking sector.

Reserves serve as a current regulation of liquidity in the money market, on the one hand, and as a limiter on the issue of credit money, on the other.

In case of violation of the required reserve ratios, the Bank of Russia has the right to recover in an indisputable manner from the credit institution the amount of outstanding funds, as well as a fine in the established amount, but not more than the double refinancing rate.

Operations on the open market, which are understood as the purchase and sale by the Bank of Russia of government securities, corporate securities, short-term transactions with securities with the conclusion of a reverse transaction later. The limit of operations on the open market is approved by the board of directors.

In accordance with the Law of July 10, 2002 No. 86-FZ (as amended on October 27, 2008) “On the Central Bank of the Russian Federation (Bank of Russia)”, the Bank of Russia has the right to buy and sell bills of commodity origin with a maturity not more than 6 months, buy and sell bonds, certificates of deposit and other securities with a maturity of not more than 1 year.

Refinancing - lending by the Bank of Russia to banks, including accounting and rediscounting of bills. The forms, procedure and conditions for refinancing are established by the Bank of Russia.

Refinancing of banks is carried out by providing intraday loans, overnight loans and holding Lombard loan auctions for up to 7 calendar days.

Currency regulation should be considered from two sides. On the one hand, the Central Bank must monitor the legality of foreign exchange transactions, on the other hand, the change in the exchange rate of the national currency against other currencies, avoiding significant fluctuations.

One of the methods of influencing the exchange rate is the conduct of foreign exchange interventions or motto policy by central banks.

Foreign exchange intervention is the sale or purchase by the Central Bank of foreign currency in the foreign exchange market in order to influence the exchange rate and the total demand and supply of money. These, obviously, should also include transactions for the purchase and sale of precious metals on the domestic market of the Russian Federation, the procedure for which is regulated by the letter of the Central Bank of the Russian Federation dated December 30, 1996 No. 390.

The main tasks of the exchange rate policy in Russia are to strengthen confidence in the national currency and replenish gold and foreign exchange reserves. At present, the monetary base is fully secured by gold and foreign exchange reserves.

Under the direct quantitative restrictions of the Bank of Russia, the establishment of limits on the refinancing of banks, the conduct by credit institutions of certain banking operations are accepted. The Bank of Russia has the right to apply direct quantitative restrictions in exceptional cases for the purpose of pursuing a unified state monetary policy only after consultations with the government of the Russian Federation.

The Bank of Russia may set growth targets for one or more indicators of the money supply based on the main directions of the unified state monetary policy. In Russia, the main aggregate is the monetary aggregate.

To date, the monetary policy of central banks is guided by monetarist principles, where the Central Bank is tasked with tightly controlling the money supply, ensuring a stable, constant and long-term growth rate of the amount of money in the economy, equal to the GDP growth rate.

Other factors that affect demand, supply and interest rates include:

• 1. the situation in the real sector of the economy;
• 2. return on investment in production;
• 3. the situation in other sectors of the financial market;
• 4. economic expectations of business entities;
• 5. the need for banks and other business entities in cash to maintain their liquidity.

Politics of cheap and expensive money

Depending on the economic situation in the country, the central bank pursues a policy of cheap or expensive money.

Cheap money policy

Characteristic of a situation of economic recession and high unemployment. Its goal is to make credit money cheaper, thereby increasing aggregate spending, investment, production, and employment.

To implement a cheap money policy, the central bank may reduce the discount rate on loans to commercial banks or purchase government securities on the open market or reduce the reserve requirement, which would increase the money supply multiplier.

Dear money policy is carried out in order to reduce the rate of inflation by reducing aggregate spending and limiting the money supply.

Includes the following activities:

• 1. Raising the discount rate of interest. Commercial banks begin to take less loans from the Central Bank, hence the money supply is reduced.
• 2. Sale of government securities by the central bank.
• 3. Increase in the norm of reserve requirements. This will reduce the excess reserves of commercial banks and reduce the money supply multiplier.

All of the above instruments of monetary policy referred to indirect (economic) methods of influence. In addition to these general methods of monetary regulation, the whole bank also uses direct (administrative) methods designed to regulate specific types of credit. For example, a direct limitation on the size of bank loans for consumer needs.

Monetary policy has pros and cons. Strengths include speed and flexibility, less dependence on political pressure compared to fiscal policy. Problems in the implementation of monetary policy are created by cyclical asymmetry. The effectiveness of monetary policy can also be reduced as a result of an opposite change in the velocity of money.

The monetary policy of the Central Bank of the Russian Federation is a set of government measures that regulate the activities of the monetary system in order to regulate the economic situation and achieve a number of general economic goals: strengthening the monetary unit, stabilizing prices, restructuring the economy, stabilizing economic growth rates.

There are two main types of monetary policy:

• 1. Restrictive monetary policy. It is aimed at implementing measures that regulate the activities of the monetary system by limiting the volume of credit operations of commercial banks and raising interest rates. Its implementation is usually accompanied by an increase in taxes, a reduction in government spending, and other measures aimed at curbing inflation and improving the balance of payments. This policy can be used both to fight inflation and to smooth out cyclical fluctuations in business activity.
• 2. Expansionary monetary policy. It is characterized, as a rule, by the expansion of the scale of lending, the weakening of control over the increase in the amount of money in circulation, the reduction in tax rates, and the lowering of interest rates.

Both types of monetary policy can be either total or selective. With a total policy, the measures of the Central Bank of the Russian Federation apply to all CBs, with a selective policy - to individual credit institutions. When using a selective policy, it is practiced to use the following set of instruments or their combinations: setting limits on accounting and re-registration operations (by industry, region, etc.), limiting certain types of CB operations, setting a margin when conducting various financial and credit operations, regulating the conditions for issuing certain types of loans to different categories of borrowers, setting credit ceilings, etc.

Selective policies are resorted to when financial markets are poorly developed, when they are not able to provide a sufficiently effective redistribution of funds and investments in the right directions.

This policy contributes to a change in credit flows in certain sectors of the economy, on the other hand, it hinders the normal functioning of the credit and financial system due to the creation of preferential lending conditions for certain counterparties. Choosing a Specific Type of Monetary Policy

The Central Bank of the Russian Federation is carried out on the basis of the state of the economic situation. At present, the Central Bank of the Russian Federation is pursuing a policy of a managed floating exchange rate of the ruble against major foreign currencies. This allows you to increase the saturation of the economy with money. In practice, the Central Bank of the Russian Federation combines both types of monetary policy, which allows creating conditions for a gradual reduction in inflation and ensuring sustainable economic growth.

The strategy and tactics of the Bank in the field of obtaining and granting loans are carried out in accordance with the Bank's credit policy and internal regulations on the procedure for conducting credit operations.

Organization of credit activity in the Bank is carried out by the credit department and the credit committee in accordance with the Regulations on the credit department and the credit committee. The Board of Directors of the Bank exercises control over the activities of the credit committee.

In pursuance of the Decree of the President of the Republic of Kazakhstan dated July 7, 1997 No. 3589 "On priorities and regional programs to support the development of small businesses in the Republic of Kazakhstan", loans are allocated to small and medium-sized businesses. At the same time, the Bank takes into account the economic and social significance of business projects, their profitability, security and liquidity.

The task of the Bank is to develop the business of clients by joint efforts.

In 2000 - the first half of 2001, such sectors of the economy as banking, restaurants, hotels, retail and wholesale trade were financed. The implementation of lending projects is economically conditioned by the fact that the invested funds began to work and generate income in the shortest possible time.

A distinctive feature of the Bank's activities is the development of leasing operations. The Bank actively uses financial leasing when lending to its clients and has a targeted program. Lessees can be persons engaged in entrepreneurial activities. Leasing operations are one of the most effective methods for updating the material and technical base and are widely used in non-CIS countries. Leasing is a long-term lease of property with subsequent proportional repurchase at the residual value. By acquiring property through leasing, we significantly save working capital by directing it to the most relevant, in our opinion, investment objects.

Procedure for registration of leasing transactions:

To carry out leasing operations, an educational institution must have a current account with Valut-Tranzit Bank;

The educational institution independently determines the necessary equipment and issues an invoice from the "Supplier" of equipment to the "Valut - Transit Bank";

The Bank draws up a sale and purchase agreement with the "Supplier" of equipment;

A leasing agreement is concluded with the subsequent purchase of property between the Educational Institution - the lessee and the Bank - the lessor;

After the expiration of the lease agreement, the equipment remains the property of the Educational Institution.

In the event of temporary financial difficulties, "Valut - Transit Bank" offers to use a short-term loan - an overdraft.

Used by the Bank and factoring - financing the supply of goods with deferred payment. The use of factoring leads to a significant increase in the number of customers, working capital and an increase in sales.

Since the end of 1996, the Bank actively contributed to the development of the pawnshop movement in Kazakhstan on the basis of partnerships with Valut - Transit Pawnshop, and to this day the Bank continues to cooperate with Valut - Transit Pawnshop LLP.

The Bank pursues a similar lending policy with other legal entities. This policy is designed for long-term cooperation and is aimed at the development of borrowers, which subsequently excludes the non-repayment of borrowed funds.

"Valut - Transit Bank" offers its assistance and a qualitatively new program of concessional lending to students, applicants and students, as well as effective leasing operations.

Preferential lending of "Valut - Transit Bank" is a really advantageous offer, the terms of which became interested and used by more than 80 educational institutions of Kazakhstan. The main advantage lies in the receipt of funds for tuition fees from students who have received loans from the Currency - Transit Pawnshop. At the same time, the student draws up a loan secured by his own property at a preferential interest rate and is independently responsible for its return. Consequently, educational institutions are not guarantors, are not guarantors and mortgagors.

Moreover, educational institutions are increasing the number of potential, solvent students and the volume of their own working capital.

The procedure for obtaining concessional loans:

Educational institutions conclude an agreement on joint activities with "Valut - Transit Bank" and "Valut - Transit Lombard" and open a bank account;

Educational institutions send debtors and applicants who are not able to pay for their studies in "Currency - Transit Lombard";

A student or his parents, secured by their own property, draw up a loan, the interest rate of which is much lower than ordinary pawn loans;

The loan amount is transferred to the settlement account of educational institutions in the "Currency - Transit Bank";

Educational institutions use the received money at their discretion.

Participation in a joint project of concessional lending gives the Educational Institution the right to repeatedly use the Bank's leasing services.

The Bank's activities are built on the basis of self-sufficiency and the desire to increase the level of profitability of operations.

The Bank has the right to carry out lending activities in all sectors of the economy and in all regions of the Republic of Kazakhstan.

For placement on the credit market, the Bank can use both its own money and attracted as deposits of corporations, organizations, institutions and the public, as well as loans and deposits received in the domestic and international financial markets.

Directions and priorities of the credit policy are determined by the Bank independently.

The Bank may carry out commercial and investment lending, as well as perform agency functions for the targeted placement of state budget funds and credit resources of other banking institutions, corporations and international financial organizations on the terms determined by agency contracts or agreements.

WITH Taking into account the Bank's development strategy, the current economic situation in the country and the most likely directions for its change, the priorities of the Bank's credit policy are the investment of credit resources in the following sectors of the economy:

a) in the field of commercial short-term lending:

1) industry, energy, communications, transport, production of consumer goods;

2) healthcare;

3) trade;

4) production and processing of agricultural products;

5) provision of services to the population;

6) development of small and medium business;

7) provision of short interbank loans;

b) in the field of documentary credit operations:

1) provision of guarantees and acceptance of guarantees of counterparty banks, opening letters of credit and confirmation of issued letters of credit by partner banks;

2) avalization of bills of exchange of clients;

3) acceptance of customers' bills of exchange in accounting;

c) in the field of investment lending:

1) phased implementation: short-term and relatively small projects for the development of the production of consumer goods; medium-term projects on the scale of industries to develop the production of products with enhanced consumer properties; medium- and long-term intersectoral projects for the development of production of products that meet international quality standards. In this direction, both individual and joint lending (syndication) of medium- and long-term investment projects with other banks is possible in order to share risks.

2) the following are established as investment lending priorities: projects with short payback periods; projects to create and modernize the production of products with a capacious and reliable sales market, stable supplies of raw materials and components; projects using financial leasing of equipment; projects for the creation of new, as well as the modernization and reconstruction of existing import-substituting industries in light, food, flour and cereals, printing, pharmaceutical and a number of other industries, including small and medium business projects; projects proposed for financing by the Government of Kazakhstan and international organizations. Of these, the priority is given to the possibility of lending to profitable projects on a syndicated basis by Kazakhstani and foreign investment banks with a good reputation, with credit risk hedging.

Having the ability to maneuver credit resources throughout the country, the Bank does not set regional priorities in its credit policy.

Due to the rather rapid pace of change in the situation in the sectors of the economy, the Bank, as necessary, adjusts the marketing strategy to clarify and more clearly define the system of target markets and sectors of the economy in the field of lending.

Credit risk limits per borrower, group of companies linked between:

a) the maximum amount of risk per borrower, including:

1) special relationship with the bank - 11%;

2) other borrowers - 25%;

3) blank loans - 11%;

b) the total amount of risk to borrowers associated with a special relationship with the bank - 100%.

The established limits for a group of two or more borrowers are calculated in aggregate as per one borrower if one of them has the ability to control or exercise significant influence over the other party in making financial and business decisions.

The level of credit risk associated with counterparty banks determines the size of the limit allocated for transactions with it. The purpose of setting the limit is to minimize the risk of non-repayment (inaccurate execution) by counterparties (issuers) of their obligations to the bank or obligations under transactions guaranteed by the bank. Risk levels are calculated using financial analysis procedures, procedures for subsequent monitoring of the financial condition, existing credit history, correspondent relations, status and behavior in the banking market.

Depending on the nature of the loan, the following lending deadlines are set:

a) the nature of the loan:

1) for replenishment of working capital of enterprises - up to 1.5 years of enterprises;

2) consumer credit to individuals - up to 5 years;

3) loan to the employees of the Bank - up to 5 years;

4) for the issuance of wages - up to 2 months;

5) investment financing - up to 2 years;

b) interbank loan:

1) short-term - up to 1 year;

2) medium-term - from 1 year to 3 years;

3) long-term - from 3 years and above

4) pawnshop credit - up to 1 month.

5) leasing - up to 5 years;

c) within credit lines - in accordance with the terms of this credit line.

In order to reduce possible asset liquidity risks, the Bank diversifies credit risks by industry, separating types and types of credit transactions within a particular segment.

Taking into account the possibility of changes in the development of certain sectors of the economy (state financing, opening targeted foreign credit lines, and others), the Bank conducts a quarterly analysis of the loan portfolio for the concentration of loan investments by industry and other business areas. Based on the results of the analysis, the prerogatives are determined and the Credit Committee sets limits for certain industries, taking into account the forecast of expansion or narrowing of some direction.

Basic requirements for borrowers:

1) fulfillment by the counterparty bank of all requirements regulating the activities of banks in the territory of Kazakhstan, Russia and other CIS countries;

2) compliance of the financial condition of the counterparty bank with the requirements of the internal regulations;

3) positive credit history - the timeliness of repayment of previously issued interbank loans and accrued interest on them, the absence of overdue debt on interbank loans and interest;

b) legal entities:

1) positive reputation of the borrower;

2) positive credit history;

3) the absence of file cabinet No. 2 or the written consent of the creditor to defer the claim for the period of validity of the loan agreement with the Bank;

4) stable financial position and solvency of the Client;

5) the manufactured products or services of the Client must be in demand in the market (liquidity, solvency), thereby ensuring stable sales and cash flow;

6) provision of liquid collateral;

c) individuals.

The Bank lends to individuals in accordance with internal regulations for various types of lending to the population.

Consideration by the Bank of loan applications of individuals, resolution of issues related to the issuance or prolongation of terms, assessment and analysis of collateral, as well as resolution of other issues is carried out in strict accordance with internal regulations and compliance with all requirements and procedures of this policy.

Lending to bank employees and officials is carried out in accordance with the internal regulations.

The loan price is formed depending on the prevailing market interest rates offered by other financial institutions, the refinancing rate of the National Bank of Kazakhstan, market interest rates on government securities, depends on the timing of loans. The price is also formed based on the economic value of the bank's assets and liabilities, on the prevailing interest margin in general for all operations conducted by the Bank, the maturity of the loan, the level of credit risk, the nature of the loan collateral, the content of the project being financed, and other factors.

The remuneration (interest) rate can be fixed and floating, which is stipulated in the terms of the loan agreement. Floating rates may be revised by the Bank during the term of the loan, depending on changes in the credit market and other factors. Fixed rates remain unchanged throughout the term of the loan agreement.

A necessary step in determining the price of a loan is the assessment of credit, interest rate, currency and industry risks.

Credit or default risk can be defined as the lender's uncertainty that the debtor will be able and intend to meet its obligations in accordance with the terms and conditions of the loan agreement. This condition can be caused by:

The inability of the debtor to generate adequate future cash flow due to unforeseen adverse changes in the business, economic or political environment in which the borrower operates;

Uncertainty about the future value and quality (liquidity and saleability on the market) of collateral for a loan;

The emergence of doubts about the business reputation of the borrower.

The main criteria for assessing credit risk are:

a) the reputation of the borrower: the timeliness and completeness of the borrower's performance of its obligations. The appraisal process consists of a personal interview, background checks both personal (based on recommendations provided by the borrower, especially in the case of personal loans or loans to partnerships) and business (checking the borrower's creditors, suppliers and customers). Information shall be provided in written form whenever possible; in the event that there is only oral, notes are made by the loan officer, which are filed with other documentation on the loan, indicating the source and time of receipt of information;

b) borrower's options:

1) the ability of the borrower to receive money for all its operations (total inflow of money received by the borrower in the course of entrepreneurial activities during the period of its activity) or for a specific project (loan for a separate project);

2) the borrower's ability to manage cash;

c) assessment of the borrower's creditworthiness: on the basis of a thorough study of the company's balance sheet, report on financial activities, the financial stability, solvency of the client is determined, the liquidity of the balance sheet is assessed;

d) borrower's capital: the borrower's capital base and his determination to use his own capital in the project for which he is applying for a loan. The borrower must be able to share the risk of the project with the lending bank and be willing to do so by providing a reasonable portion of its share capital, i.e. the borrower must be bound by obligations.

e) terms: the current state and overview of the local, regional and national economy, as well as the industry of the borrower. Different economic conditions and forecasts for different industries often require different lending criteria in different phases of the business cycle.

f) collateral: reliable collateral in the form of collateral or guarantee may influence the final decision when one or more of the criteria is not positive.

Currency risk is associated with the uncertainty of the future movement of the price of the national currency in relation to foreign ones. It affects borrowers, lenders, investors and traders who transact in currencies other than their home currency.

Industry risk:

a) industry risk is related to the degree of volatility in the activities of the industry in economic and financial terms. The greater the volatility of the industry, the greater the degree of risk. This takes into account:

1) activities of alternative industries for a given period of time;

2) whether industries that have developed well in the past continue to operate successfully at the present time (compared to the economy as a whole);

3) whether there is constancy of results within the industry;

b) The intra-industry competitive environment is an additional source of information about the strength and viability of firms in a given industry relative to firms in other industries and is therefore an indicator of risk. The characteristics of this environment include:

1) the degree of fierceness of price and non-price competition;

2) ease or difficulty of entering the industry (and sometimes exit);

3) the existence or lack of close and cost-competitive substitutes;

4) market power of buyers;

5) market power of suppliers;

6) political and social environment.

Country risk is the risk that the current or future political or economic conditions in a country will change to the extent that they may affect the ability of the country, firms and other borrowers to meet external debt obligations.

Country risk is subdivided into:

Political;

Macroeconomic;

Financial;

Social;

Spontaneous.

Interest risk is the risk that the average cost of the bank's funds, which are used to issue a loan, may exceed the average interest rate on loans provided during the life of the loan.

Remuneration (interest) is accrued according to the accrual method and collected from the Borrower in accordance with the terms of the loan agreement. Rates and repayment terms of remuneration (interest) on loans, commissions on guarantees and letters of credit are established in each case separately, by the decision of the Credit Committee or the Board of the bank.

In accordance with the principles of credit risk management, the Bank independently determines the currency of the loan to be issued. As a rule, the Bank provides loans in the national currency, in the national currency with a fixed currency equivalent at the rate of the NBRK, or at the rate of the Interbank Currency Exchange, in foreign currency.

The lending process is associated with the action of numerous risk factors that can lead to late repayment of the loan, which will worsen the position of the bank. Therefore, the bank pays special attention to studying the creditworthiness of the borrower and assessing the risks associated with this loan. The main purpose of studying creditworthiness is to determine the ability and willingness of the borrower to repay the loan in accordance with the terms of the contract. The bank not only assesses the creditworthiness of the client on a certain date, but also predicts its financial stability in the future. Analysis of the borrower's creditworthiness begins with an analysis of the sources of loan repayment.

With the development of market relations, the need arose for a fundamentally new approach to determining the creditworthiness and financial stability of an enterprise, taking into account foreign experience, which is facilitated, in particular, by the introduction of new forms of balance sheet. The accepted grouping of articles allows for a fairly deep analysis of creditworthiness.

The analysis of the information base about the client should include a comprehensive assessment of information about the client received from business partners, data from reports of specialized agencies, analysis of financial statements, personal impressions of the banker during the conversation with the client. This comprehensive assessment of the data is compiled into an expert opinion. Based on the financial statements, financial indicators are calculated that characterize the past and current financial position of the borrower and the development trend. In the practice of credit analysis, the following indicators are used:

absolute liquidity ratio;

Quick liquidity ratio;

current liquidity ratio;

Coverage ratio;

Turnover of all assets;

Turnover of fixed capital;

Accounts receivable turnover;

Accounts payable turnover;

Profit rate;

Inventory turnover.

In addition to financial analysis, data on the company's managers, marketing research (information about competitors, market conditions, and others) are entered into the expert opinion, and as a result, a conclusion is made about the borrower's financial situation.

The creditworthiness of the borrower is determined in the same way, both for domestic lending and for external lending.

The purpose of the analysis of individual borrowers is to assess the risk associated with lending to individuals, that is, whether this individual can make interest and other payments on time. In different countries and even different banks, there are significant differences in the methodology of analysis, the factors that make up the reputation of an individual were diverse, they can be conditionally grouped according to the principle of belonging to a certain field of human activity:

Social: age, marital status, number of dependents;

Professional: education, profession, qualifications, occupation, duration of work in one place;

Property: what property is available;

Special: reflects the relationship of the borrower with the servicing bank.

The Bank also constantly monitors the issued loan (guarantee, letter of credit) and makes prompt decisions regarding the development and repayment of the loan, promptly identifying the emergence of problem loans (guarantees, letters of credit).

The Bank's subdivisions responsible for issuing loans maintain a credit file for each borrower.

Doing and storage of credit dossiers should be entrusted to a responsible employee of the bank, who is responsible for ensuring the completeness of documents in the bank's credit dossiers and their safety.

Each credit file must have a separate list of documents contained in the credit file, bound and numbered in chronological order.

For blank loans, the credit file is sufficient to have the basic documentation required when granting any loan. The main documentation corresponds to the following list:

a) an application signed by the borrower, containing an indication of the purpose of using the loan and a description of the property that can be provided as collateral for the repayment of the loan, indicating the book value:

1) the decision of the authorized body of the borrower - a legal entity to obtain a loan;

2) the decision of the authorized body of the pledger - a legal entity to provide the subject of pledge to secure the fulfillment of the obligations of the borrower;

b) duly certified copies of the constituent documents of the borrower, if it is a legal entity;

c) a notarized card with samples of signatures and a seal of a legal entity, and a power of attorney on behalf of the borrower to a person authorized to sign a bank loan agreement on behalf of the borrower;

d) the original of the concluded bank loan agreement:

1) business plan of the borrower or feasibility study of the loan;

2) financial statements as of the last reporting date preceding the date of submission of the application, signed by the borrower - legal entity, and financial statements of the borrower - legal entity for the last reporting year with a copy of the tax return, as well as a bank statement containing an assessment of the creditworthiness of the borrower - legal entity;

e) the conclusion of the bank, containing an assessment of the possibility of the borrower to achieve the goals and objectives defined in its business plan;

f) the decision of the relevant body of the bank to approve the issuance of a loan in terms of terms and other conditions;

g) documents confirming the purpose of using the loan;

h) information about open bank accounts in other banks and about the borrower's debt on bank loans;

i) a copy of the document of the established form, issued by the authorized body, confirming the fact of state registration or re-registration for individual entrepreneurs;

j) a document of the established form, issued by the tax authority, confirming the fact of the client's tax registration.

If the borrower is an agent of another person for obtaining this loan in full or some part of it, then a copy of the document certifying the borrower's authority as an agent, which indicates the amount of the loan and the purpose of using it by the actual recipient, must be attached to the dossier.

When providing loans to small businesses in the amount of not more than ten million tenge, the following list of documentation is required:

An application signed by the borrower, containing an indication of the purpose of using the loan;

Copies of the borrower's constituent documents (for a legal entity) or an identity document (for an individual);

Signature sample card, seal imprint (for legal entities);

The original of the concluded bank loan agreement;

Feasibility study of the loan;

Financial statements as of the day of application, signed by the borrower - a legal entity;

A copy of the document of the established form, issued by the authorized body, confirming the fact of state registration or re-registration for individual entrepreneurs;

A document of the established form, issued by the tax authority, confirming the fact of the client's tax registration.

For loans granted with the condition of securing the fulfillment of the borrower's obligations in the form of a pledge of movable property, in addition to the main documentation, the loan file is accompanied by a pledge agreement, information on the subject of pledge and methods for determining its value.

In cases stipulated by the legislation of the Republic of Kazakhstan, the pledge agreement must contain a mark on its registration with the relevant authorized state bodies.

The dossier on loans allocated for the purchase of movable property, which, in accordance with the pledge agreement after becoming the property of the borrower, became the subject of pledge, must contain documents confirming the purchase price of this property and the amount for which it is insured.

If the loan is issued for use by the borrower in the field of construction, including reconstruction or other construction improvements of real estate, then the design and estimate documentation for the planned work and inspection reports prepared by the bank, or the act of acceptance and delivery by the borrower confirming the completion of the work, are attached to the dossier for which the loan has been allocated.

For a loan, the fulfillment of an obligation on which is secured only by a guarantee or guarantee, the following additional documents are attached to the credit file:

a) a contract of guarantee or guarantee;

1) decision of the authorized body of the guarantor or guarantor of a legal entity to issue a guarantee or guarantee to the creditor bank to secure the fulfillment of the obligations of the borrower;

b) notarized documents confirming the person's authority to sign a guarantee agreement on behalf of the guarantor or a guarantee agreement on behalf of the guarantor;

c) financial statements of the guarantor or guarantor, which is a legal entity, as of the last reporting date preceding the issuance of a loan, or a certificate confirming the income of the guarantor or guarantor, which is an individual.

The information contained in credit files is an internal, chronological and comprehensive record of all relationships between the bank and the client. The content of the credit file goes beyond purely credit relationships and affects the registration of all types of activities between counterparties. The comprehensive nature of such information is necessary to determine the profitability or riskiness of the state of the entire complex of relationships. Taking into account the confidentiality of information, the access of bank employees to credit files is limited.

For To replenish the dossier, the employee responsible for the project uses information received from the borrower as reports, during personal conversations with the company's managers, contacts with its suppliers, from other banks and financial organizations, and the media.

Subdivisions monitoring disbursed loans are obliged to provide the employee responsible for the project with complete information on the progress of the disbursement of the disbursed credit and bear equal responsibility with him for the timely adoption of measures to overcome emerging critical situations on disbursed loans.

In the event of signs of a downgrading of the borrower's class and an increase in the risk of the loan, the employee responsible for monitoring the loan is obliged to notify the Bank's management and organize work to overcome the problems that have arisen. Recommended actions that can be taken by the Bank's lending department are as follows:

A meeting is held with the borrower to find out the reasons for the occurrence of a critical situation;

The financial condition of the borrower is checked, if necessary - with a visit to the place;

The client's problems are analyzed with the identification of the main cause of a critical situation (problems of this industry, the position of the enterprise in the industry, loss of competitiveness and markets, temporary deterioration of the financial condition or financial collapse, and so on);

An assessment is made of the severity of the problem in order to overcome it (it is possible or impossible to correct the situation);

In the process of credit rehabilitation, attention is focused on the structure of the balance sheet and the composition of the cash flow. Assets are checked in detail and it is established which should be liquidated or at least reduced in size;

Development of measures to rescue a problem loan (measures to change the structure of the borrower's debt, additional collateral and loan guarantees, consulting services for financial recovery and reduction of the borrower's expenses, termination of regular loan payments, and so on).

If it is impossible to correct the critical situation from the issued loan and the maturity of its repayment, the Bank makes claims and performs other legal actions provided for by the legislation of the Republic of Kazakhstan.

Classification of the loan portfolio is carried out on the basis of the Regulation "On the classification of bank assets and contingent liabilities and the calculation of provisions on them by second-tier banks of the Republic of Kazakhstan" (Resolution of the Board of the National Bank of the Republic of Kazakhstan dated May 23, 1997 No. 218), Addenda to it, as well as using the Bank's own methods.

The primary classification of the loan portfolio is based on the classification of borrowers and the level of risk at the time of granting loans. Additional classification of loans and analysis of the loan portfolio is carried out on a monthly basis by the relevant divisions of the Bank based on the generalization and analysis of incoming information on the financial condition of borrowers and the implementation of financed projects. Based on the results of the analysis, the classification of loans can be changed, and measures are taken to improve the quality of the loan portfolio.

Together with the current control over the state of the loan portfolio, the Bank conducts its own audit (at least once a year) verification of loans granted in order to establish:

Conditions and procedures for storing credit documentation;

The state of work of credit departments for monitoring loans issued;

Compliance of the work of the Bank's credit divisions with the requirements of the Regulations on Internal Credit Policy;

Conditions and structures of the loan portfolio;

The correctness and completeness of the formation of provisions (reserves) to cover losses from credit activities and contingent liabilities;

correct classification of loans, guarantees, letters of credit;

Timeliness of withdrawal of loans and accrued interest to accounts for accounting for overdue debts.

Based on the results of audits, a report is drawn up and submitted to the Bank's management.

The procedure for the formation of provisions (reserves) to cover losses from credit activities is determined by the Regulation "On the classification of bank assets and contingent liabilities and the calculation of provisions for them by second-tier banks of the Republic of Kazakhstan" (Resolution of the Board of the National Bank of the Republic of Kazakhstan dated May 23, 1997 No. 218).

The write-off of debt on a loan and accrued interest or interest, both for the balance sheet and off-balance sheet accounting, is carried out in accordance with the above regulatory legal acts of the NBK and internal documents of the bank.

Every bank has its drawbacks. So JSC "Valut - Transit Bank" has its drawbacks. They are:

Analysis of the creditworthiness of the borrower;

Banking risks;

These shortcomings will be discussed below.

All changes in the Bank's Internal Credit Policy are subject to approval by the Bank's Board of Directors.

Bank loans are one of the most popular and widespread types of borrowed resources. They are used not only by ordinary citizens, but also by enterprises to maintain their financial activities. The advantages of a bank loan are different, but at the same time, borrowed funds have significant drawbacks.

Bank loans have advantages and disadvantages. Moreover, they depend on the type of loan that a citizen or organization receives. Much depends on the favorable conditions at a particular moment under which the loan is taken.

Before taking a loan, you need to familiarize yourself with all the advantages and disadvantages

Among the main advantages of bank lending are:

• a small list of documentation required by the bank (especially for consumer lending);
• the possibility of obtaining at any time and for any purpose, if the loan is not targeted;
• admissibility of issuance for various business transactions, as well as for investment purposes;
• a wide variety of types of loans issued with the possibility of obtaining money for both short and long periods;
• accessibility for different segments of the population;
• the existence of a cashless lending system, in which it is possible to make payments by electronic transfers;
• the possibility of repaying the loan ahead of time, if there is an agreement on this with the bank;
• the loan price is an integral part of the production costs of organizations, due to which they have the opportunity to reduce taxable profits;
• lending conditions allow citizens and organizations to competently plan their budget, which creates control over the flow of funds.

The main advantage of a bank loan is that a citizen can immediately realize his need for something. This applies to the purchase of real estate, a car or a trip on vacation. A loan is a more attractive alternative to simply saving money.

Paradoxically, loans are less affected by inflation. It negatively affects the ability of the population to save money, but at the same time makes it easier to repay the loan. Inflation, although indirectly, serves as a positive factor when choosing a citizen in favor of a bank loan.

A bank loan has one indisputable advantage over another possible alternative - leasing. The essence of leasing is the financial lease by the lessee of an object owned by the lessor. After receiving a loan from a bank, a citizen or organization acquires property and becomes its owner, and not a tenant, as happens in the case of leasing. But at the same time, the loan creates certain encumbrances for property owners in the form of the need to repay the debt.

Disadvantages of loans

Bank loans have a number of disadvantages, including:

• inflated interest rates;
• the presence of a system of guarantees and collaterals that burden not only the borrower, but also third parties;
• the need to use money only for certain purposes, if the loan is targeted;
• the need to pay commissions to the bank by the borrower when repaying the loan ahead of schedule in some cases;
• the operation of the bureaucratic system in obtaining loans by citizens and organizations;
• the presence of a strict schedule for the repayment of the loan amount and interest on it;
• strict requirements for recipients, detailed verification of their solvency;
• the availability of additional paid bank services, about which the borrower may not be warned in a timely manner;
• high risk of fraud when receiving funds, especially when applying for a long-term bank loan.

A loan helps not to waste time on saving money, but to get what you want in a short time

Any type of bank loan has three main disadvantages. The first of them is the urgency of debt repayment, the second is the payment for the service of lending money, the third is repayment, which imposes a burden on borrowers.

Loans taken in foreign currency are often disadvantageous for borrowers. If the exchange rate of the currency in which the loan was taken fluctuates, a multiple increase in the amount of debt and interest on it is possible.

Particularly burdensome for borrowers is the requirement of many banks for the need for collateral when granting a loan. The pledge serves as an interim measure and guarantee for the payment of the entire amount of the debt and interest. Collateral has a whole list of risks for borrowers for the following reasons:

• pledged property is included in a special register, which prohibits the owner from disposing of it in full without the approval of the bank;
• pledged property is insured by the borrower at the request of the bank, the borrower himself is also subject to additional insurance, which increases his additional costs;
• if the borrower becomes insolvent, his pledged property can be sold to other persons through the court, which ultimately means the loss of ownership.

When paying off debt, citizens and organizations significantly overpay, which is beneficial for the creditor. In addition to the principal debt, they pay interest, the amount of which is initially overestimated by the bank. In some cases, banks charge borrowers a fee for conducting a loan business, for individual payments to repay a debt.

Overpayment on loans issued by banks often exceeds the cost of the loan itself.

Advantages and disadvantages of corporate lending

Lending to enterprises has the following advantages for them:

• free choice of credit scheme;
• little time spent on raising money;
• the secrecy of the transaction and the minimum risk of disclosing its data to other organizations;
• the effect of flexible conditions for the provision of loans by banks;
• no taxation of borrowed funds received by the organization.

Most often, banks value their customers and are ready to make concessions to regular borrowers in the form of preferential lending terms. The process of attracting a loan takes 14-60 days. At the same time, the specified period is much shorter than the period required for organizations to issue shares or search for a reliable investor.

Among the shortcomings, it is worth noting the high overpayment for a loan

Among the disadvantages of a bank loan are:

• violation of the financial stability of the organization due to the received loan;
• mandatory collateral equal to the amount of the requested loan;
• high probability of refusal in extradition;
• difficulty in obtaining money for a long period of time due to the tough policy of the Central Bank;
• high lending rates.

In every sense, it is more profitable for organizations to build a business on their own funds, since borrowed funds always need to be repaid, while paying high interest. But attracted bank funds are the only way for the normal functioning of most established organizations.

Loans make up about 10-50% of the total number of all funds that organizations and citizens take as loans. The negative aspects associated with lending are mitigated by the ability of citizens and organizations to quickly resolve their financial problems. With proper planning of the payment schedule, as well as calculating the rate of return, using a loan can bring benefits to the borrower.

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The essence of a bank loan

Definition 1

Bank loan- this is the amount of money provided by the bank to companies and individuals under certain conditions and for a certain period.

On the other hand, a bank loan is a certain technology to meet the borrower's need for financial resources.

Thus, Bank loan can also be considered as a complex of interrelated financial, organizational, informational, technological, legal and other procedures. All of them, taken together, form a holistic regulation of the interaction of a banking institution represented by its divisions and employees with bank customers regarding the provision of monetary resources to the latter on terms of payment, urgency and repayment. A bank loan can be carried out both in the form of loans, in the form of bills of exchange, and also in other forms.

Bank credit is active And passive. Active means that the bank is acting as a creditor. In the second case, he is a borrower. Thus, the bank can receive loans from other financial institutions (including the central bank of the country) or issue loans to other commercial banks (interbank lending).

Benefits of debt financing through bank loans

Among the main ones are:

• Wide range of options for choosing a lending scheme (there are quite a few different options and programs for lending to firms and individuals)
• Flexible conditions for the provision of borrowed funds (for example, specific requirements for the borrower may be specified in the contract; preferential terms for granting loans may be provided to regular customers; if necessary, the conditions for granting and repaying loans can be revised, etc.)
• Relatively low costs of funds and time for attracting a bank loan (in the post-Soviet countries, attracting a large bank loan takes about 2 weeks to 2 months; this procedure is much faster than, for example, issuing shares or bonds; borrowed funds are not taxed, etc. )
• Confidentiality and the absence of strict requirements for the disclosure of information about the company and its activities, etc. (in accordance with the Federal Law "On Banks and Banking", as well as with the concept of "bank secrecy"; bank loans, in contrast to raising funds through the issue securities does not require disclosure of information about the company).

Disadvantages of a bank loan

The main ones include:

• The risk of a decrease in financial stability and, as a result, the solvency of the company (borrowed funds create the risk of inability to service interest payments (default) and, as a result, the risk of bankruptcy of the company).
• Difficulties in obtaining large amounts for a long period (in today's difficult conditions, the loan term of most companies often does not exceed 3 years).
• Excessively high price of borrowed resources (the interest rate for business is very high; it is somewhat easier to get a bank loan for large, financially stable enterprises, moreover, the larger the loan size, the lower the interest rate can be; high interest rates are due to significant systematic and non-systematic risks).
• Requirements for collateral (loans for firms are often issued on the security of property and, at the same time, its value must be no less than the value of the loan itself)
• The probability of refusal by the bank (due to the economic crisis, many enterprises have significantly worsened the indicators that financial and credit institutions pay attention to when they decide to issue a loan; low profitability, financial stability and liquidity serve as an obstacle to obtaining debt financing).

The concept of the bank's credit policy includes a number of factors, actions and documents that determine the further development of the institution in the direction of providing attracted customers.

With the help of credit policy, it is possible to more clearly organize the process of issuing loans, determine its basic principles, adopt the most effective methods and means of implementation, and identify key priorities and strategic objectives.

The credit policy regulates the functioning of the system for issuing loans, helps to deal with the issues of processing and movement of documents faster and more professionally, and contributes to the correlation of the institution's lending activities with the overall strategy of professional activity.

Bank credit policy instruments

At the disposal of commercial banks is a fairly large number of tools, the specifics of the functioning of which are determined by various factors. According to the terms of impact, the instruments are divided into long-term and short-term, according to the principle of regulation, qualitative and quantitative, according to the form indirect and direct, according to the objects of influence - supply and demand for financial resources.

All of the methods listed above actively interact with each other within the framework of use in a single system. In countries where the economy is at a high level of development, central banks operate as completely independent structures. This independence is expressed in the ability to independently choose the types and methods of using tools that help implement monetary policy.

Credit policy of a commercial bank

The credit policy of commercial banks is a more prosaic concept. Here we are talking about the development of specialized programs aimed at lending to individuals and legal entities. The basis of the credit policy of commercial organizations, as a rule, is the optimal ratio of the level of profitability and potential risks that are found in the process of carrying out certain operations. The policy in the lending segment of large and experienced commercial banks differs significantly from their vision of the situation of younger competitors. For this reason, there are financial institutions on the market that impose increased requirements on borrowers and vice versa, those that literally issue “left and right”.

Factors affecting credit policy

A number of microeconomic and macroeconomic factors almost equally affect the credit policy of financial institutions.

The first group includes such indicators as liquidity of assets in the context of a particular enterprise, specialization of an individual banking institution, features of the client base, attraction of additional financing and features of the resource base. The level of staff qualifications in some cases plays a decisive role, since not all specialists, for example, are able to work with unreliable borrowers.

Among the macroeconomic components, first of all, I would like to note the level of competition in the banking sector, the state of national currency quotes, interest rates, inflation, as well as the stage of the economic cycle that the state is currently going through.

Legal issues should not be discounted either, since they can influence the size of bank reserves, change or not change in interest rates, as well as other parameters of work by sending the administration of commercial banks the relevant directives.

Directions of the bank's credit policy

Among the main directions of the credit policy of commercial banks, I would like to single out such a term as a developed policy. The process of its implementation consists in the development of documents and instructions that determine the stages of interaction with customers and the criteria for their evaluation, the features of regulating the main operations, as well as other equally important points. The main feature of the credit policy of any bank is rightly considered to be its fickle nature. The adopted provisions are subject to regular review and revision, depending on changes in the economic situation in the state.

The risk of the bank's credit policy

Among the main risks of the credit policy of banks, errors in the process of implementing the adopted provisions are distinguished:

1. Inexperienced management may allow the creation of low quality assets, depriving the institution of a stable source of income.
2. The poor quality of work with personnel leads to the formation of an unprofessional team, whose work does not have the best effect on the characteristics of the loan portfolio of a financial institution.
3. In the absence of due attention to strategic objectives and goals, managers risk losing the opportunity to finance profitable and economically promising projects, as a result of which the institution will lose a number of potential key clients.
4. Among the risks of credit policy is also the inability to establish long-term relationships with customers who are able to generate high income.
5. Spraying on highly competitive methods that are not justified in some cases is also not recommended.

Bank credit policy requirements

The main requirement of the credit policy of any commercial bank is the need for enhanced work on long-term relationships with legal entities acting as borrowers. This work is based on pre-approved criteria for selecting clients. As a rule, this refers to the possibility of securing a loan received, the availability of equity capital of an adequate size, successful financial and economic experience in the segment over a long period, the level of profitability and stability of the business, the transparency of the schemes on the basis of which the income and profit of the company are formed.

In the framework of interaction with representatives of small businesses, the credit history, reputation and personality of the manager play a decisive role.

Objectives of the bank's credit policy

The main goal of the credit policy of any banking institution is rightly considered to be profit maximization against the background of minimizing potential risks. Based on the possible options for the ratio of these components and resources that are currently available, the current tasks of the credit institution are determined, including control over the lending process, technological features of operations, as well as the choice of one or more areas of lending.

Apparatus for managing credit operations and the powers of bank employees

The powers delegated to the bank for lending are strictly differentiated in rubles and in dollar terms. The organization of the functioning of the credit process is engaged in the management of credit operations. And the powers of bank employees depend directly on the experience and qualifications of the staff. The bank accepts the maximum risk on the borrower in the prescribed amount, which may be in the range of 100 thousand dollars. and more. The amount of lending depends on a number of factors, including previously overdue loans, the structure of the loan portfolio.

In practice, bank employees use a number of techniques that contribute to the organization of credit management. Influencing factors: the creditworthiness of the person and the degree of risks taken. An employee of the bank considers the type of credit, the amount and time of repayment of previously accepted credit obligations, based on the studied data, offers individual or complex credit services. Responsibility for disbursed funds most often rests with the branch manager.

Organization of the credit process at various stages of the implementation of the loan agreement

The organization of the credit process at various stages of the implementation of the loan agreement depends on the organization's credit policy carried out by bank employees: requirements, analysis, lending methods. It is represented by the stages of forming a list of applications, negotiating with potential borrowers, assessing the feasibility and degree of risk in connection with a positive decision to issue funds, the process of obtaining a loan, monitoring the execution of the contract and the intended use of the funds received, closing the contract for the return of the full amount and interest due for the use of the loan.

The guarantor of the successful functioning of the credit sector of each branch is the responsibility of the bank's employees for a complete study of the indicators of the client's financial stability. Thus, the bank's successful credit policy consists in using the maximum possible credit funds by attracted clients with minimal risks.

Banking control and credit process management

The lending industry brings maximum profit to financial and credit organizations, provided that the bank maintains a policy of constant monitoring of each stage of the operation. Preliminary control of a credit transaction allows you to select the most creditworthy persons from the submitted applications. Current control is performed to check the credit history, information and documents provided by the borrower, risk analysis.

Subsequent banking control and management of the credit process is carried out after the client receives funds and is performed until the end of the contract. It includes the stages of control over the movement of credit funds and the constant financial well-being of the client, guardianship of collateral and timeliness of payments. Effective management of the credit process is to protect the loan portfolio.

Credit policy in work with legal entities

The banking credit policy in working with legal entities implies fruitful long-term cooperation in connection with the formation of a good loan portfolio with minimal risks. Legal entities selected according to a number of criteria will be offered interesting terms of cooperation from the point of view of minimizing costs.

The assessment of the stability of a legal entity is subject to the factors of cleanliness of bookkeeping, business profitability and its strategic stability in difficult times of crisis, the availability of equity and property that can be offered as security for loan obligations.

Credit policy for individuals

Lending to individuals is carried out by all financial institutions that have received permission to perform lending operations. Given the credit policy of a particular bank, financial analysts calculate income programs offered to customers as loan products. The credit policy for individuals includes specialized long-term offers ( , ), individual loans (targeted, concessional), opening short-term credit lines within the financial capabilities of clients ().

The credit policy imposes restrictions on borrowers by age, permanent income and work experience, and other criteria. When assessing the solvency factor, an analysis of credit history is carried out, and the presence of cash balances in customer accounts at the end of the month is also taken into account.

The essence of the credit policy of the bank

The essence of the bank's credit policy is a set of measures aimed at creating such credit and investment proposals and products that will minimize the riskiness of operations and obtain a high share of profitability. Virtually complete risk-free lending secured by collateral issued in the national currency in the economic stability of the country.

However, it is always important to analyze external economic factors of influence, such as the instability of currencies, crisis factors leading to instability. Then it is advisable to introduce a policy of restricting lending. The purpose of the credit policy is to calculate the amount of funds and expenses that is desirable and effective for lending, which should be neglected.

The content of the bank's credit policy is an individual issue directly related to the goals set and the chosen credit policy. The strategy and tactics of banking decisions in the field of lending determine the essence of the policy of a particular institution. The primary strategic role here is played by the priority direction of development. A number of financial institutions prefer to develop in one direction, like car loans or lending to the agricultural sector, for example, others aim to provide services to the entire lending industry.

Tactics includes all the tools and methods for achieving the set goals, taking into account the formation of rules, rates, conditions. Important factors: the qualifications and diligence of the staff in order to avoid mistakes and make irrational decisions.

Advice from Sravni.ru: The bank's credit policy is a universal tool, the correct use of which determines the overall financial result of a particular institution. If you were issued a loan in one of the banks, despite a damaged credit history, then the policy of the institution provides for the possibility of taking such a risk. If an individual bank is engaged exclusively in long-term mortgage lending, then such provisions are formulated in the document on its credit policy. Unfortunately, the basic principles of the work of certain banks are hidden from individuals and legal entities with seven seals. Therefore, potential borrowers often have to independently determine what this or that credit institution is really capable of.