Home  Journals  Finance and Credit  34(562) - 2013 September

Reducing risks of lending to corporate borrowers with commercial bank underwriting procedures

Available online: 15 September 2013

Subject Heading: Banking

JEL Classification: 

In the article it is noted that an actual task of any commercial bank is reducing credit risk through the development and introduction of modern methods of analysis of the creditworthiness of borrowers. Search of new approaches to credit risk assessment has led the Russian banks to the need for underwriting procedures.The essence, the features and order of use of procedures of corporate underwriting in the course of crediting of corporate borrowers are revealed, and the structure of rating model is defined. The conclusion is drawn that correctly organized procedure of underwriting is capable to provide decrease in risks of crediting of corporate borrowers at the expense of broad coverage of risk factors.

Keywords: risk, analysis, solvency, underwriting, model, credit rating

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

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