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Comparison of Different Methods of Credit Risk Management of the Commercial Bank to Accelerate Lending Activities for SME Segment

Author

Listed:
  • Eva Cipovova
  • Gabriela Dlaskova

Abstract

The contribution is dealing with selected assessments of the most important risk in the banking sector in the Czech Republic. The aim of this article was to quantify capital requirement for individual methodologies of credit risk management on the designed portfolio with corporate loans with use of collateral using collaterals as techniques to reduce credit risk of commercial bank. Firstly, the aim of this article is to quantify the capital requirements using the Internal Rating Based Approach with collateral usage. Afterwards, achieved results have been compared with the methodology of the Standardized Approach and Internal Based Approach. The article is highlighted aspects of transition to developed methods of Internal Rating Systems with significant savings on equity, which allows banks accelerate lending activities and so increase provided services for small-medium sized companies.

Suggested Citation

  • Eva Cipovova & Gabriela Dlaskova, 2016. "Comparison of Different Methods of Credit Risk Management of the Commercial Bank to Accelerate Lending Activities for SME Segment," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 17-26.
    • Handle: RePEc:ers:journl:v:xix:y:2016:i:4:p:17-26
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    Citations

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    Cited by:

    1. Nikolai Vasilevich Lyasnikov & Evgeniya Evgenevna Frolova & Andrei Alievich Mamedov & Sergei Borisovich Zinkovskii & Natalya Andreevna Voikova, 2017. "Venture Capital Financing as a Mechanism for Impelling Innovation Activity," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 111-122.
    2. Surya Bintarti & Mohammad Hatta Fahamsyah, 2018. "Improving Tourism Quality by Islamic Finance," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 393-401.
    3. Marinela BARBULESCU & Alina HAGIU, 2019. "Typology Of Credit Risk In Economy," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 18(3), pages 101-106.
    4. Eva Maria Lado Gonzalez & Domingo Calvo Dopico, 2017. "The Importance of Intangible Assets in the Strategic Management of the Firm: An Empirical Application for Banco Santander," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 177-196.
    5. Constantin ANGHELACHE & Mădălina Gabriela ANGHEL & Dana Luiza GRIGORESCU, 2019. "Currency risk management model," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(620), A), pages 21-34, Autumn.
    6. Mihail Nikolaevich Dudin & Nikolay Vasilievich Lyasnikov & Konstantin Yurievich Reshetov & Olga Olegovna Smirnova & Nataliya Vladimirovna Vysotskaya, 2018. "Economic Profit as Indicator of Food Retailing Enterprises' Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 468-479.
    7. Jullie Jeanette Sondakh, 2017. "Behavioral Intention to Use E-Tax Service System: An Application of Technology Acceptance Model," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 48-64.
    8. S.S. Morkovina & V.V. Malitskaya & E.A. Panyavina & I.V. Sibiryatkina, 2018. "Export Potential and Measures to Support Small and Medium-Sized Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(Special1), pages 303-314.
    9. repec:ers:journl:v:special_issue:y:2018:i:1:p:303-314 is not listed on IDEAS
    10. Zulfi Diane Zaini, 2017. "The Function of Financial Services Authority (FSA) in Dispute Settlement Banking Customers in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 69-81.
    11. Constantin Anghelache & Madalina-Gabriela Anghel & Stefan Virgil Iacob, 2021. "Statistical-Econometric Methods For Risk Diversification," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 157-163, October.
    12. Ana Maria POPESCU & Ștefan Virgil IACOB & Alina Eliza DABIJA, 2020. "Methods used in risk financing," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(625), W), pages 143-158, Winter.
    13. Faris Nasif Al Shubiri & Syed Ahsan Jamil, 2017. "Assessing the Determinants of Interest Rate Spread of Commercial Banks in Oman: An Empirical Investigation," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 90-108.

    More about this item

    Keywords

    Standardized Based Approach; Foundation Internal Rating Based Approach; Probability of default; credit risk management;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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