Abstract

The article proposes a model of credit risk assessment on the basis of factor analysis of retail clients / borrowers in order to ensure predictive control of the level of risk posed by potential clients in commercial banks engaged in consumer lending. The aim of the study is to determine the level of risk represented by different groups (classes) of retail clients (borrowers) in order to reduce and prevent credit risk in the future as well as to improve the management of banking risks. The main results of the study are the creation of a model of borrowers’ internal credit ratings and the development of the methods of improving credit risk management in commercial banks.

Details

Title
CREDIT RISK MANAGEMENT IN COMMERCIAL BANKS
Author
Konovalova, Natalia; Kristovska, Ineta; Kudinska, Marina
Pages
90-100
Publication year
2016
Publication date
2016
Publisher
Czestochowa University of Technology Faculty of Management
ISSN
20817452
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2505469080
Copyright
© 2016. This work is published under https://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.