CREDIT RISK AND HOW TO MINIMIZE

Lending activity of the bank is one of the fundamental criteria, which differentiates it from non-banking institutions. lending operations - the most profitable article of banking business. Due to this, the source formed the bulk of the net profit. At the same time non-payment of loans, especially large can lead to bankruptcy of the bank. Therefore, credit risks - the main problem of the bank and its management is an essential part of the strategy and tactics of development of any commercial bank.