THEORETICAL BASIS FOR ASSESSING THE CREDITWORTHINESS OF BANK BORROWER
Journal Title: Вісник соціально-економічних досліджень - Year 2018, Vol 1, Issue 65
Abstract
The article offers a scientific and practical approach to assess the creditworthiness of Ukrainian bank’s borrower. As a result of the conducted research, it is proved: 1) the existing problems of assessing the creditworthiness of borrower are based on banks’ attempts to make unsecured loans and do not create reserves for credit risk by their own expenses; 2) the potential creditworthiness of any borrower is zero and implies a 100% credit risk; 3) credit risk reduction and improvement of the borrower’s creditworthiness are only possible by taking of security under credit agreement by the bank; 4) the sum of a potential loan depends entirely on the amount of the security provided by the borrower under credit agreement; 5) the net credit risk has to be fully covered by the bank’s own expenses for the formation of reserves for this risk.
Authors and Affiliations
Oleksandr Syrchyn
Keywords
Related Articles
- EP ID EP373673
- DOI 10.33987/vsed.1(65).2018.153-160
- Views 98
- Downloads 0
Identification of assessment aspects and quality parameters of organizational structures of enterprise management in the context of system and synergistic approach
The diagnostic criteria of quality of organizational structures of management in dynamic context are analyzed in the article. A list of quality parameters of organizational structures of management is defined. Connectio...
EVOLUTIONARY STRATEGY AS A METHOD OF IMPROVING THE BALANCED SCORECARD OF ENTERPRISE MANAGEMENT
The article is devoted to the application of the method of evolutionary strategy for improving the enterprise management as a type of evolutionary algorithms, namely, the completion of a balanced scorecard by the algorit...
Enterprise’s financial equilibrium in the system of modern economic relations
The subject of the article is the financial equilibrium of an enterprise in the system of equilibrium interrelations in the economy. The purpose of the article is to substantiate the place of the enterprise financial equ...
INTELLECTUAL CAPITAL IN THE KNOWLEDGE-BASED ECONOMY
The considerations provided herein focus on intellectual capital as a concept that is gaining increasing significance in the functioning of business and public entities in the era of the knowledge-based economy. This pap...
DIAGNOSTIC OF BUILDING ENTERPRISES MARKETING MICROENVIRONMENT IN UKRAINE
The article presents diagnostic of building enterprises marketing microenvironment in Ukraine. Personal questions are developed and a survey of the subjects of the construction industry, according to the constituent elem...