"Credit loss risk assessment in Russian SME lending. Case Sovcombank"
Grigorev, Georgii (2022)
Grigorev, Georgii
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022060615755
https://urn.fi/URN:NBN:fi:amk-2022060615755
Tiivistelmä
The most critical problem for bankers (lenders) is to minimize the risk of credit loss. This thesis aimed to define the main difficulties in credit risk assessments of an SME in Russia and find solutions to the research problem.
This thesis focused on analysing how lending techniques could be applied in developing the Russian economy and what contracting solutions and control mechanisms could be used with the bank to reduce credit loss risk on the stage of decision making and in the duration of loans.
The research included interviews with commercial bank managers to outline their vision on the issue of credit loss risk and how they manage and prevent it. Interaction with the owners of SMEs to understand their opinion on the relation with other banks and the possibility of satisfying banking requirements were explored.
The conclusions highlighted the most effective techniques for the Russian bank in its economic environment in its SME credit risk assessment models to eliminate obstacles and minimize credit loss risks like Informational opacity, collateral insufficiency, and low equity.
Moreover, relying on research, Russian banks will make recommendations in their credit risk assessment. Following these recommendations, the Russian bank could keep its SME bad debts at a low level.
This thesis focused on analysing how lending techniques could be applied in developing the Russian economy and what contracting solutions and control mechanisms could be used with the bank to reduce credit loss risk on the stage of decision making and in the duration of loans.
The research included interviews with commercial bank managers to outline their vision on the issue of credit loss risk and how they manage and prevent it. Interaction with the owners of SMEs to understand their opinion on the relation with other banks and the possibility of satisfying banking requirements were explored.
The conclusions highlighted the most effective techniques for the Russian bank in its economic environment in its SME credit risk assessment models to eliminate obstacles and minimize credit loss risks like Informational opacity, collateral insufficiency, and low equity.
Moreover, relying on research, Russian banks will make recommendations in their credit risk assessment. Following these recommendations, the Russian bank could keep its SME bad debts at a low level.