Banking Risks represent the probability of an unfavorable outcome of the operations carried out by credit institutions, or the occurrence of unexpected events.The activities of each bank based on the riskiness of starting with the possibility of loss due to the non-return of credit and ending with losses from natural disasters.That is why the management of this aspect is one of the most important tasks of the economic life of the country.
During the study was developed by experts to determine the classification of bank risks based on various criteria.For example, depending on the sphere of influence can be identified external and internal.The first implies the impact of the political, social and other environmental changes.A domestic risks are directly related to the activities of a credit institution.If we consider the banking risks according to the methods of their control, they can be divided into those open and closed.Last amenable to influence, that is, it can be influenced by insurance or diversification.
should also consider the various types of banking risks of an internal nature, since it is the most extensive category, including currency, interest rate, credit, market, and many other risks.So, currency imply the likelihood of significant losses of the bank due to a sharp change in the exchange rate.Interest rate risk is based on the possibility of reducing the profit for the accounting of interest rate variation.Market risks associated with the bank financial market conditions and the value of assets of the enterprise on it.
Credit appearance suggests the probability of any loss related to the late, full or partial repayment of borrowed funds.The greatest loss occurs in the event of failure to pay the full body of the loan and interest due to customer insolvency.Since 80% of all operations of commercial banks take it loans, the decrease in the level of credit risk is an urgent problem of our time.
to common internal risks include operational views and abuse of power.With the first faced each bank, as there is always the chance of inefficient operation of internal control systems or errors in the daily activities of the company.The risk of abuse is the misconduct of employees of credit institutions, non-compliance with job descriptions or flagrant violation of the basic rules, for example, disclosure of information is a trade secret or confidential data to use for other purposes.
To banking risks has the least impact on the activities of these institutions, they should be properly managed.As an effective instrument can distinguish the formation of mandatory reserves in the accounts of the central bank, hedging and diversification, the balance of inflows and outflows of resources, an increase in the reserve fund.The Government is also interested in reducing the risk of each bank, as the bankruptcy of one can lead to the fall of the banking structure and the emergence of a crisis situation.Therefore, the central bank sets the rate of compulsory redundancy, ie commercial banks to open their accounts in the national.On these accounts, they deduct a percentage of each transaction.This approach can be considered a kind of "safety cushion", which provides coverage for damage in case of loss.
If we talk about credit, the Bank in this area requires a specific provision in the form of collateral or guarantees.No credit, especially in a large amount shall not be issued without confirmation of the solvency of the customer and provide it in the event of default funds.Hedging and diversification involves risk insurance and high quality distribution, ie losses in one sector repaid by profits in another.
