Anna Viter
Kazakhstan, Karaganda
The credit policy of
joint-stock company «BTA Bank» was developed according to the Republic
Kazakhstan current legislation, including standard documents of Agency of
Financial Monitoring on the regulation and supervision of the financial market
and financial organizations, National Bank of the Republic of Kazakhstan, and
also recommendations on the international banking practice. These guidelines define Bank strategy the field of
crediting.
Advantages and disadvantages of credit policy of
Kazakhstan Banking.
The credit policy of joint-stock
company «BTA Bank» was developed according to the Republic Kazakhstan current
legislation, including standard documents of Agency of Financial Monitoring on the
regulation and supervision of the financial market and financial organizations,
National Bank of the Republic of Kazakhstan, and also recommendations on the
international banking practice. These
guidelines define Bank strategy the field of crediting.
It is possible to carry such purposes of bank as:
• Maximization of
incomes of long-term or short-term credit operations within the limits of the
established risks and the current legislation;
• Introduction of a
complex control system by risks of the Bank, directed on decrease and a
diversification of risks;
• efficient control
maintenance with credit process of Bank;
• the direction of
credits in priority and least risky branches of economy;
• Maintenance of
steady growth of profitableness of credit operations by means of development of
new bank products and service improvement of quality;
• Increases of a
rating of steady Bank in economic, social and ecological aspects.
Allocated three
mainframes, service directly involved in process and crediting of clients of Bank:
• the Corporate
Block
• the Block of
Small and Average Business
• the Retail Block.
The corporate block
is engaged in crediting of large corporate clients. For the purpose of increase
of efficiency of interactions and quality of service, distribution of clients
between internal divisions of this block is made to regional and branch signs.
At occurrence of time financial difficulties «BTA Bank» suggests to use the
short-term credit – overdraft. For placing in the credit market, the Bank can use
both own money, and involved as deposits of corporations, the organizations,
establishments and the population, and also credits and the deposits received
in the internal and international financial markets.
Despite all advantages of Bank, there are also lacks
of a credit policy. During confident growth of economy and development of
business of borrowers «BTA Bank» has undergone to the risks connected with risk
of a non-return of the credit. That is, it is possible to tell that the Bank
most loyally concerned the clients in the course of crediting. As a result the
situation with an unjustified estimation of financial possibilities of the
borrower that has led has served:
- Inability of the
debtor to create an adequate future monetary stream in connection with
unforeseen adverse changes in a business, economic environment.
- Uncertainty in
the future cost and quality (liquidity and sale possibility in the market)
pledge under the credit;
- Occurrence of
doubts about business reputation of the borrower.
Also, the Bank has
undergone to branch risk: the branch risk is connected with variability degree
in branch activity in the economic and financial plan. The more variability of
branch, the is more risk degree.
The risk of
management can be one more lack or omission from Bank, that is malmanagement of
resources or derivation of money resources on absolutely other purposes in this
case is meant. Such situation could be present even before crisis, now, each 20
days the Bank carries out monitoring of the given out credit if the borrower
has broken treaty provisions, penal sanctions in this case leave.
Last lack and some
kind of risk of a credit policy of Bank, is the risk connected directly with
the personnel of Bank. That is, it can be both turnover of staff, and unworthy
behavior of the employee to the client that can lead to numerous loss of a part
of clients. Ethics in dialogue with the client, this most important thing at
the initial stage of dialogue with the client. Therefore, comparing behavior of
employees of our domestic banks to banks of the developed countries, it is
possible to tell that it is necessary for workers of banks of our country will
learn to rules of behavior at foreign experts.
Crediting process
is connected with action of the numerous risk factors, capable to cause
inopportuneness of repayment of the loan that will even more worsen bank
position. Therefore the bank should give particular attention to studying of
credit status of the borrower and an estimation of all risks set forth above
accompanying the given credit. A main objective of studying of credit status is
definition of ability and readiness of the borrower to return the loan
according to treaty provisions. The bank not only should estimate credit status
of the client for certain date, but also to predict its financial stability on
prospect, and also prospect of all other risks.
To raise economic efficiency and to
improve resource distribution, the government encourages competition through
free hade. To survive and achieve prosperity, bankers should reject bureaucratic traditions and encourage businessmen
reacting and adapting to market economy. Irrespective of a culture political
system should aspire to create an effective
economy. The most important role belongs
to the banks, their credit policy. The major economic feature of a credit
policy is the movement of the credit. A credit policy has one purpose to
maximize bank income for reliability and stability. Credit policy depends on
customer demand and can be combined with new ways to meet this demand. Hence, a
progressive policy is
an important
element of the superstructure, which is executed by the personnel of bank and overseen
shareholders, clients of bank, industry, bodies of bank supervision. Credit is
an important material force, promoting bank development, overall performance
increases on inadequate credit policy arres is bank development is an indicator
of poor financial condition, and may lead to its bankruptcy.
Any bank with credit activity faces
a problem in insolvency.
Management of a
credit policy expresses the general strategy of development of a corporation. Credit
policy does not establish a path to achievement but only forms a
"skeleton", a structure of recommendations and a basic direction of
performance of private business operations. On the basis of this
"skeleton" the technique of carrying out of the daily actions can be directed
to optimal credit policy.