Modern imperative trends in the analysis of the creditworthiness of bank borrowers

Казак, Оксана Олексіївна and Дворецький, Дмитро Юрійович (2021) Modern imperative trends in the analysis of the creditworthiness of bank borrowers Ефективна економіка (6). ISSN 2307-2105

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Abstract

Modern conditions of post-war management and increased financial instability determine the need of business entities to attract borrowed funds. In addition, the wide range of different risks of certain areas of activity of the borrower makes it impossible to guarantee the return of borrowed resources. Therefore, in a crisis, banks should pay even more attention to assessing the creditworthiness of the borrower. This article is devoted to the consideration of modern imperative trends in the analysis of the creditworthiness of bank borrowers. In particular, the obvious focus of banks in conducting an analysis of the financial performance of creditors and the lack of proper attention to non-financial information about the debtor. The method of coefficients is evaluated, its strengths and weaknesses are identified. The lack of a single stable algorithm for calculating quantitative indicators has been determined, which leads to the complication of the process of determining the borrower's creditworthiness and the need to improve the use of qualitative indicators. The range of problematic issues of the borrower's creditworthiness analysis is outlined, in particular, the market of functioning, the presence of the client sector, the transparency and truthfulness of the borrower's financial information and its credit history. The article describes such basic foreign methods of analysis of creditworthiness of borrowers as MEMO RISK, Rule 6C, Methodology 4FC, CAMPARI, PARTS and PARSER, conducted a comparative analysis. A number of practical measures to create an effective method of analyzing the borrower's creditworthiness are proposed. It is determined that the development of such a comprehensive methodology for credit analysis will help improve the process of credit analysis of borrowers and make more informed and correct decisions in the credit risk management system of the bank. As an example, the positive innovative parameters of the credit risk monitoring process of Credit Agricole Bank are outlined.

Item Type: Article
Uncontrolled Keywords: creditworthiness; creditworthiness analysis; borrower; methods of qualitative analysis; method of borrower's creditworthiness analysis
Subjects: Статті у наукометричних базах > Index Copernicus
Статті у журналах > Фахові (входять до переліку фахових, затверджений МОН)
Divisions: Факультети > Факультет інформаційних технологій та управління > Кафедра фінансів та економіки
Depositing User: доцент Оксана Олексіївна Казак
Date Deposited: 09 Nov 2021 09:57
Last Modified: 09 Nov 2021 09:57
URI: https://elibrary.kubg.edu.ua/id/eprint/38318

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