Home  Journals  Finance and Credit  29(461) - 2011 August

Managing operational risks in corporate loans: analyses of credit methodology as means of controlling fraud risk

Available online: 2 August 2011

Subject Heading: Bank crediting

JEL Classification: 

One of the major outcomes of the world financial crisis for Russia was the credit fraud. The volumes of the direct and indirect losses of the banking system are measured by billions of roubles. However there are no statistical research or any other systematic data on this type of risk, both in Russia and abroad. The issue is being studied at the very initial stage with no methodological recommendations from major regulators - Bank of Russia and Basel Committee.
     The article includes the analyses of the market during the crisis period, main weak points of the banking system, and puts forward the need for managing credit fraud risks. The analyses of contemporary credit methodology has been carried out, the problem of reliability of data for analyses has been revealed as well as reasons for falsification of official and actual information. The ways to manage operational risks within providing corporate loans under fraud schemes have been submitted.

Keywords: Banking risks, managing operational risks, credit fraud, Basel 2, financial downturn, tax optimization, commodity-money flows, overdue, financial analyses

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

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