Burov P.D. The Main Conditions and Problems of Developing a Credit Rating Position of a Commercial Bank's Lendee

Abstract: The main purpose of a bank is to maintain the balance between risk and profitability of credit operations by competently managing credit risk and, first of all, evaluating creditability of lendees which is performed through improving credit risk management and developing guidelines on creditability evaluation. The purpose of the present article is to offer an efficient inventory for evaluating the level of creditability and making a rating of a lendee based on the points evaluation method. The research is based on the method described in a modified scheme of Central Bank of Russia's Instructions No. 2005 dated May 28, 2008 'On Evaluating the Economic Position of Banks'. Their modified approach to evaluating creditability and developing a credit rating of a lendee from a commercial bank implies, first of all, establishing a set of indicators for evaluating a lendee's level of creditability but the economic position of a bank, secondly, assigning certain points to a lendee, thirdly, calculating points as multiplying the level and the indicator's value; and fourthly, creating a rating where the first place is given to the most unsatisfactory lendees, the second place is the 'doubtful' lendee', the third place is a satisfactory lendee and the fourth place is a good lendee. Based on these indicators the general indicator is calculated as a weighted average of creditability showing a lendee's rating in points. The result of the article is the proof that the offered inventory of making a credit rating of a commercial bank's lendee allows to raise efficiency of the credit risk management. 

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