Home  Journals  Finance and Credit  48(432) - 2010 December

Modernization of national internal credit rating system according to demands of international regulator

Available online: 22 December 2010

Subject Heading: BANK SYSTEM

JEL Classification: 

To estimate capital for credit risk, Russian internal credit rating system is to bring in correspondence with the demands of Basel Agreement II, it is important to estimate the probability of borrower’s default. In order to prove the necessity of correspondence of national internal credit rating system with international regulations, requirements to forming of those systems in international and Russian practice are compared, similarities, differences, disadvantages and problems of national systems revealed. Consequently, modernization trends regarding the best examples of foreign practice are marked that will finally contribute to stability of Russian bank sector.

Keywords: Basel’s Committee on bank supervision, probability of default, internal credit rating system, borrower’s financial condition, outer rating, capital for credit risk, qualitative, quantitative estimation

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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