Credit Monitoring – a Core of Credit Risk Management: Theory and Experience
Loading...
Files
Date
2011-06
Authors
Jurevičienė, Daiva
Skirckaitė, Dovilė
ORCID
Advisor
Referee
Mark
Journal Title
Journal ISSN
Volume Title
Publisher
Vysoké učení technické v Brně, Fakulta podnikatelská
Abstract
Purpose of the article Purpose of the article is to identify credit monitoring as a keystone of credit
risk management in banks. CRM is widely discussed in scientific literature and in reports of
institutions undertaking credit risk or supervisory bodies. However majority of such investigations are
based on implementation of numerous quantitative or qualitative methods used for credit risk
assessment before granting a loan or for credit portfolio risk management. There is a lack of
information or investigations made on estimation of the need of credit monitoring in credit risk
management process.
Scientific aim Scientific aim is to structure the early warning signs that reflect the condition of
credits.
Methodology/methods The paper is based on analysis and resumption of various scientific and
professional articles related to organization of credit process in banks. It combines results of
assessments of credit monitoring importance in credit risk management process made by theoretical
studies as well as investigation of experts.
Findings Finding of the article is presentation of credit monitoring tools that should be applied for
corporate (and individual) clients via modification of original credit agreement.
Conclusions (limits, implications etc) Conclusion of the article is that credit monitoring is a
keystone in credit risk management process. The purpose of credit monitoring is to detect in time
possible worsening of the loan and to react (make changes in loan agreement). The simplest tool for
credit monitoring is to identify early warning signs in time that could be assorted into four groups:
EWS of business environment; EWS with regard to management, EWS regarding collateral, EWS in
financial analysis. Limitation of investigation is impossibility of evaluation of importance of
monitoring process in practice except investigation of experts (employees) directly responsible for
credit business.
Description
Citation
Trendy ekonomiky a managementu. 2011, V, č. 8, s. 117-130. ISSN 1802-8527.
http://www.fbm.vutbr.cz/cs/fakulta/vedecky-casopis/aktualni-cislo/1114-cislo8
http://www.fbm.vutbr.cz/cs/fakulta/vedecky-casopis/aktualni-cislo/1114-cislo8
Document type
Peer-reviewed
Document version
Published version
Date of access to the full text
Language of document
en
Study field
Comittee
Date of acceptance
Defence
Result of defence
Document licence
© Vysoké učení technické v Brně, Fakulta podnikatelská