BANK RISK MANAGEMENT: THE NONREIMBURSEMENT OF CREDITS BY LEGAL PERSONS

Abstract

As a result of the fact that credit institutions are vulnerable to a risk of non-reimbursement of the credits lent to legal persons, compared to the ones given to natural persons, the authors aim to show that, by means of a good credit risk management, the reimbursability degree of the credits lent to legal persons may be improved. This risk may be reduced by means of two stages of the credit lending, respectively the stage of analysis of the financial situation of the economic entities and respectively the stage of active monitoring of credit lending. We are trying to show that, banks can successfully manage bank risks if they fulfil a few minimal requirements, such as: a good knowledge of the strategic role regarding risk management; the use of the paradigm of analysis and management to increase efficiency; adoption of some precise actions of adaptation of performance under risk and generation of a mechanism reporting performance depending on risk.

Keywords

• bank
• credit
• credit risk
• rates
• contracts concluded.