Финансы: теория и практика (Oct 2018)
KEY PERFORMANCE INDICATORS OF THE BANK’S DISTRESSED ASSETS AND THEIR CALCULATION
Abstract
At the present, the success of a credit institution is possible only if it can organize effective work with distressed assets. They can be managed through a system of key performance indicators, which allows decomposition of the goals of the organizational unit to specific, measurable indicators. The purpose of this article is a presentation of key performance indicators (KPI), grounded on the formation of the basic principles of management of distressed assets, the methodological approaches to their assessment and calculations, and also formulas for the calculation of specific KPIs. My research was conducted using the methods of theoretical knowledge, logical methods and methods of comparative analysis. First, I have identified the main signs of the problem of the consumers’ indebtedness, as well as a list of documents on the basis of which it is possible to conclude that the assets are distressed. Secondly, I have outlined the main tools for working with the bank’s distressed assets, implemented in the framework of the bank’s strategies of action. Thirdly, I identified key performance indicators of operations with distressed assets of the bank, methodological approaches to their evaluation, the sources for the calculation of the key performance indicators of operations with distressed assets of the bank, as well as the basic formulas by which one can calculate the necessary components of the KPI. The use of the proposed KPIs will allow the Bank to solve strategic and tactical (operational) tasks in the field of working with distressed assets, as well as to achieve the growth of the quality of work with distressed debts. The KPIs proposed in this article can be introduced into the system of assessing the activities of the division as a whole and its managers for working with distressed debts and can become the basis for the system of staff incentives.
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