Bank lending to Russian companies in modern conditions. Bank lending in the Russian Federation _____________. Problems of Forming an Optimal Loan Portfolio
Content
Introduction ……………………………………………………………………… 3
Chapter 1. Theoretical foundations of lending ……… ... …………… ..5
1.1 The role and nature of bank lending to enterprises .................... 5
1.2 Types and forms of commercial loans …………… ...… ……… ..13
- 1.3 The value and role of commercial loans in the activities of Russian companies …… .. …………………………………………….… 16
- Chapter 2. Lending to enterprises in the economy of the Russian Federation ………………………………………………………………… ... 19
- 2.1 Brief description of the financial and economic activities of Phoenix LLC ………………………………………… .19
Phoenix LLC ……………………………………………………… ... 24
Conclusion ……………………………………… ……………………… .32
References …………. ……………………………………… ...
Introduction
Nowadays, loans play a significant role in the functioning of modern enterprises. At the present stage, it is difficult to imagine the existence and successful development of an enterprise without using the credit system.
Let's try to study the credit system itself, both in general and in our country, in order to identify aspects of its impact on the functioning of enterprises and ways of further development. To do this, let's turn to history.
In modern economic literature, there are two main interpretations of the origin of the word "credit". Some economists believe that this concept originates from the Latin word credit, which means "he believes" (or from the word credo - I believe). Others associate its appearance with the Latin term creditum, which translates as a loan (debt).
In practice, credit relations represent the transfer for use of tangible assets in cash or commodity form on terms of repayment, urgency and payment, which is carried out in the form of specific credit transactions, the forms and conditions of which differ in significant variety.
The essence of a loan is always stable and unchanged: a loan is an economic relationship between a lender and a borrower about the return movement of value in commodity or money form.
The invention of credit, following money, is an ingenious discovery of mankind. Thanks to the loan, the time spent on meeting economic and personal needs has been reduced. The borrowing company, due to the additional attraction of resources, was able to increase them, expand the economy, and accelerate the achievement of production goals. Using a loan, any person gets the opportunity to direct the additional resources received to expand his business or to bring the achievement of his consumer goals closer, rather to get at his disposal things, objects, values that, without a loan, he could only own in the future.
If an enterprise has the opportunity to take advantage of a favorable external environment, that is, when there is an opportunity to promote a competitive, attractive product for customers, or some kind of service to the market, it is necessary to develop very rapidly and extensively. Unfortunately, it is impossible to occupy a leading market position without extensive growth. Accordingly, those companies that, due to certain restrictions, do not use borrowed capital in their development, may lose in time and may lose positions in the market, respectively, the influence of competitors can be compared with the spread of gas in free space, that is, competitors will take all free positions in the market ... And subsequently, the delay, which was caused by the insufficient volume of the enterprise's capital, will play a cruel joke when the company will have to compete with competitors that have strengthened and took advantage of external conditions.
Unfortunately, a significant part of domestic companies continue to rely on their own funds at a time when there is an opportunity to effectively attract borrowed funds in order to increase the rate of economic growth of the enterprise. In modern conditions, Russian enterprises are faced with the acute problem of attracting resources to finance the processes of updating fixed assets, expanding production and improving the national economy as a whole.
Chapter 1. Theoretical foundations of lending.
1.1 The role and nature of bank lending to enterprises.
First of all, borrowed funds are needed to finance growing enterprises, when the growth rate of their own sources lags behind the growth rate of the enterprise, to modernize production, master new types of products, expand their market share, acquire another business, etc. Inflation and the lack of their own working capital are forcing the majority of enterprises to attract borrowed funds to finance working capital. The advantage of financing from debt sources is the unwillingness of the owners to increase the number of shareholders, shareholders, as well as the relatively lower cost of the loan compared to the cost of equity capital, which is expressed in the effect of financial leverage.
Debt capital is a collection of borrowed funds that bring profit to the enterprise. One of the sources for the formation of borrowed capital is a bank loan.
Debt capital characterizes funds or other property values attracted to finance the development of enterprises on a repayable basis. All forms of debt capital used by an enterprise are financial liabilities that are repayable within a specified time frame.
Currently, the role of credits and loans has increased dramatically. The importance of loans and borrowings as an additional source of financing for commercial activities is especially evident at the stage of formation of an enterprise, which uses credit resources in the implementation of long-term investments aimed at creating new property. At this stage, long-term bank loans are of great importance.
Short-term loans help the company to constantly maintain the required level of working capital, help to accelerate the turnover of the company's assets.
In the current conditions of the global financial crisis, enterprises must be very careful in choosing the instruments for raising borrowed capital and their parameters, that is, learning how to manage borrowed capital to solve the assigned tasks in difficult conditions. Effective management of borrowed capital in the capital structure of an enterprise can provide additional income in its business turnover, increase the profitability of the production process itself, and increase the market value of the enterprise.
Bank credit is one of the most common forms of credit relations in the economy, the object of which is the process of transferring funds into a loan on terms of urgency, repayment, and payment.
A bank loan expresses the economic relations between creditors (banks) and lending entities (borrowers), which can be both legal entities and individuals.
The bank form of credit is the most common form, since it is banks that most often provide loans to entities in need of temporary financial assistance.
A bank loan is provided exclusively by credit and financial institutions licensed to carry out such operations.
The main principles of lending, including banking, which must be observed in the process of issuing and repaying loans, are:
- the urgency of the return;
security;
target character;
chargeable.
The security of the loan links its issuance and repayment with the material processes that guarantee the return of the funds provided. The collateral must be liquid and complete. Even when a bank provides a loan on trust (blank loan), it must have unconditional confidence that the loan will be repaid on time. Unsecured loans can only be provided in large amounts to large enterprises, i.e. first-class borrowers with qualified management and an excellent development history.
The targeted nature of the loan provides for the issuance and repayment of the loan in accordance with the goals stated at the conclusion of the loan transaction, for example, a loan to replenish the fixed capital.
Payability of the loan determines the payment for its use, in particular in the form of loan interest.
The terms of lending are understood as the requirements that apply to certain (basic) elements of lending: subjects, objects and loan collateral. In other words, the bank cannot lend to any client and that the object of lending can only be that need of the borrower, which is associated with his temporary payment difficulties, with the need to develop production and circulation of the product.
Credit conditions are as follows:
- coincidence of interests of both parties to the credit transaction;
the availability of both the creditor bank and the borrower of the ability to fulfill their obligations;
the possibility of realizing the pledge and the availability of guarantees;
ensuring the commercial interests of the bank;
conclusion of a loan agreement.
- by maturity:
Medium-term loans are provided for a period of one to three years for production and commercial purposes. The most widespread are in the agricultural sector, as well as in lending to innovative processes with average volumes of required investments.
Long-term loans are used for investment purposes. They serve the movement of fixed assets, differing in large volumes of transferred credit resources. They are used for crediting reconstruction, technical re-equipment, new construction at enterprises of all spheres of activity. Long-term loans were especially developed in capital construction, the fuel and energy complex. Average maturity from 3 to 5 years.
Oncall loans , subject to return within a fixed period after receiving formal notification from the lender (maturity date not initially specified). Currently, they are practically not used not only in Kazakhstan, but also in most other countries, since they require relatively stable conditions in the loan capital market and in the economy as a whole.
- by repayment methods:
Loans repaid in installments during the entire term of the loan agreement. The specific conditions for the return are determined by the contract. Always used for long-term loans.
3) by methods of lending interest:
Loans, interest on which is paid at the time of its general repayment. A traditional form of payment for short-term loans for a market economy, which has the most functional character from the standpoint of simplicity of calculation.
Loans, interest on which is paid in equal installments of the borrower throughout the term of the loan agreement. The traditional form of payment for medium and long-term loans, which has a fairly differentiated nature depending on the agreement of the parties (for example, for long-term loans, interest payments can begin both after the end of the first year of using the loan, and after a longer period).
Loans, the interest on which is withheld by the bank at the time of the direct issuance of the loan to the borrower. For a developed market economy, this form is absolutely uncharacteristic and is used only by usurious capital.
4) by methods of granting a loan:
Compensation loans sent to the current account of the borrower to compensate the latter for his own costs, including of an advance nature.
Paid loans. In this case, loans are received directly for payment of settlement documents presented to the borrower for repayment.
5) by lending methods:
One-time loans provided on time and in the amount stipulated in the agreement concluded by the parties.
A credit line is a legal obligation of the bank to the borrower to provide him with loans within a certain period of time within the agreed limit.
Credit lines are:
Renewable is a firm commitment by the bank to issue a loan to a client who is experiencing a temporary shortage of working capital. The borrower, having repaid part of the loan, can expect to receive a new loan within the established limit and the term of the agreement.
A seasonal credit line is provided by the bank if the company periodically has a need for working capital associated with seasonal cycles or the need to build up stocks in a warehouse.
Overdraft is a short-term loan, which is provided by debiting funds from the client's account in excess of the balance on the account. This results in a debit balance on the customer's account. Overdraft is a negative balance on the client's current account. Overdraft may be permitted, i.e. preliminarily agreed with the bank and unauthorized, when a client writes a check or a payment document without the bank's permission to do so. Overdraft interest is charged daily on the outstanding balance and the client pays only for the amounts actually used.
- 6) By types of interest rates:
Loans with floating interest rates. Floating rates are those that are constantly changing depending on the situation in the credit and financial markets.
Graduated interest rate loans. These interest rates are reviewed periodically. Used in times of strong inflation.
7) By the number of credits:
Loans provided by one bank .
Syndicated loans made by two or more lenders who are syndicated to one borrower.
Parallel loans, in this case, each bank negotiates with the client separately, and then, after agreeing on the terms of the transaction with the borrower, a general agreement is concluded.
8) According to the availability of collateral:
Trust loans, the only form of security for the return of which is a loan agreement. This type of loan does not have specific security and, therefore, is provided, as a rule, to first-class creditworthy customers with whom the bank has long-standing ties and has no claims for previously issued loans.
Contract account loan. A contract loan is issued using a checking account, which is opened to clients with whom the bank has a long-term trust relationship, to companies with an exceptionally high credit reputation.
Pledge agreement. A pledge of property (movable and immovable) means that the pledgee creditor is entitled to sell this property if the obligation secured by the pledge is not fulfilled. The pledge must ensure not only the return of the loan, but also the payment of the corresponding interest and penalties under the contract, provided for in the event of its failure.
Guarantee agreement. Under this agreement, the guarantor is obliged to the creditor of another person (borrower, debtor) to be responsible for the latter's fulfillment of his obligation. The borrower and the guarantor are liable to the creditor as joint and several debtors .
Guarantee. This is a special type of surety agreement to secure an obligation between legal entities. Any financially stable legal entity can be a guarantor.
Credit risk insurance. The borrower enters into an insurance contract with the insurance company, which stipulates that if the loan is not repaid within the specified period, the insurer pays the bank that issued the loan, compensation in the amount of 50 to 90% of the loan amount not repaid by the borrower, including interest on the loan.
9) By the purpose of the loan:
General loans , used by the borrower at its discretion to meet any need for financial resources. In modern conditions, they have limited use in the field of short-term lending, with medium- and long-term lending, they are practically not used.
Target loans, implying the need for the borrower to use the resources allocated by the bank solely for solving the problems determined by the terms of the loan agreement (for example, payment for purchased goods, payment of salaries to staff, capital development, etc.). Violation of these obligations entails the application to the borrower of the sanctions established by the agreement in the form of early withdrawal of the loan or an increase in the interest rate.
The need and possibility of attracting a bank loan is due to the regularities of the circulation and turnover of capital in the process of reproduction: in some places temporarily free funds are released, which act as a source of credit, in others there is a need for a loan, for example, to expand production. Thus, credit contributes to economic growth: the lender receives payment for the loan, and the borrower increases his production assets and renews them.
Along with bank loans, it is also necessary to note the role of commercial loans, which have become widespread relatively recently.
1.2 Types and forms of commercial loans.
In the economic literature, you can find the following definitions of the concept of "commercial credit".
- 1) A commercial loan is a special form of credit provided in a commodity form by sellers to buyers in the form of a deferred payment of money for goods sold.
- 2) A commercial loan is a deferral or payment by installments for the goods sold, which is fixed in the contract. The loan transaction here is associated with the purchase and sale of goods.
- 3) A commercial loan is often viewed as a commodity loan, since it is based on the supply of goods or the provision of services. The provision of a credit in the form of a commodity is usually associated with the impossibility of selling the goods with simultaneous payment for it, the struggle for sales markets.
A situation arises when some enterprises already have finished products for sale, while others - their potential buyers have not yet sold their goods and therefore cannot pay for someone else's goods. In this case, the movement of industrial capital is parallel to the loan. A commercial loan promotes the sale of goods and profits embedded in their value. For this reason, the level of interest on loans is lower than on a bank loan.
Commercial loans have certain application limits. It is limited in size, since each entrepreneur can provide a commercial loan only within the limits of his commodity and money capital. Commercial credit can only be used by companies purchasing the relevant goods. Finally, a commercial loan is short-term in nature, and the borrowing company may need a long-term loan.
To obtain a commercial loan, a bill of exchange is used - a promissory note of the buyer to the supplier. The bill indicates the amount of debt, interest on the loan, the term and terms of repayment of the bill. It is used not only to receive funds due to the creditor, but also as an instrument of payment. The circulation of bills expands the possibilities of providing commercial credit, as it can change hands. In this case, a transfer inscription is made on the bill - an endorsement. The more endorsements on a bill of exchange, the wider the circle of its circulation and the more guarantees of its payment.
However, the circulation of bills does not completely eliminate the limitations of commercial credit. The desire to overcome the narrow boundaries of a commercial loan leads to the emergence of a bank loan and, at the same time, to a modification of the commercial loan itself.
So, in modern conditions, commercial lending in cash is becoming more and more widely used, enterprises provide each other with cash loans. Businesses seek to issue and place short-term commercial bills of exchange with other businesses in order to leverage them. But commercial credit has not completely exhausted itself, at present there is a tendency to increase its role and increase the share in the volume of loans provided.
When a transaction between a lender and a borrower is legalized, the fee for this loan is included in the price of the goods, and is not determined specifically, for example, through a fixed percentage of the base amount.
A commercial loan is not a stand-alone transaction, but just a special condition for making settlements under an agreement, in the form, for example, of an additional agreement. This can be a contract of purchase and sale, lease, provision of services, etc. A commercial loan is inextricably linked to a contract, an additional condition of which it is.
A commercial loan has several types of provision:
1) advance payment (partial payment);
2) advance payment;
3) deferred payment;
4) payment by installments.
Commercial credit is one of the very first forms of credit relations in the economy, which gave rise to promissory notes and actively contributed to the development of non-cash monetary circulation, which finds its practical expression in financial and economic relations between legal entities in the form of selling services and products with deferred payments. The main purpose of this form of lending is to accelerate the process of selling goods and services, as well as to generate profits inherent in them.
A modern commercial loan is a loan provided by businesses to each other. It is associated with the transfer of money or other things determined by generic characteristics to the ownership of the other party. In accordance with the Civil Code of the Russian Federation, contracts may provide for the provision of a commercial loan in the form of an advance, prepayment, deferral and payment by installments for goods, works or services, unless otherwise provided by law.
The need to use a commercial loan is due to the following reasons:
- limited solvency of small and medium-sized organizations;
- an increase in the cost of goods (works, services);
- - the terms of credit agreements that make it difficult to obtain bank loans, especially in times of crises.
The main purpose of such a loan is to speed up the process of selling goods and the profits contained in them.
In foreign practice, commercial credit has become extremely widespread. For example, in Italy, up to 85% of the amount of transactions in wholesale trade are carried out on the terms of a commercial loan, and the average term for it is about 60 days, which significantly exceeds the period for the actual sale of goods to direct consumers. In Russia, until recently, this form of lending was limited to the sphere of circulation. In other industries, its spread was objectively hampered by such factors as high inflation rates, a crisis of non-payments, unreliable partnerships, and shortcomings of a specific law.
etc.................
Introduction
1. Classification of credit transactions, their legal regulation in the Russian Federation
2. Credit policy as a fundamental document for the implementation of bank lending
3. Problems and prospects for the development of bank lending in Russia at the present stage
Conclusion
List of used literature
Introduction
The Bank, being a commercial enterprise, allocates the attracted resources on its own behalf, at its own peril and risk, in order to generate income.
In international practice, asset quality along with capital adequacy is a fundamental condition that determines the financial well-being of a bank. Moreover, capital adequacy depends to a large extent on the degree of reliability of the bank's placement of funds in active operations. If the reliability of the placement promises a 100% guarantee of return, then the bank needs much less capital to continue its sustainable activity than when placing funds in active operations with high risk, leading to losses.
The active operations of the bank are heterogeneous both in terms of their economic content and in terms of their profitability and quality.
A part of the bank's active operations is the non-alternative placement of its funds (in the mandatory reserve fund, on the correspondent account in the RCC, etc.), which allows the bank to work stably, but does not generate income. Other types of placement may turn out to be highly profitable, but very risky. Therefore, each commercial bank must accurately determine its market priorities and specialization at any time period of its activity.
Lending operations should be considered the basis of active operations and one of the most important areas of activity of a commercial bank. The subjects of credit relations in the field of bank credit are business entities, the population, the state and the banks themselves.
The organization of financial and credit services for enterprises, organizations and the population, the functioning of the credit system play an extremely important role in the development of economic structures. Not only the timely receipt of funds by individual economic units, but also the rate of economic development of the country as a whole depends on the efficiency and uninterrupted functioning of the credit and financial mechanism. Therefore, for successful development and profit, the Bank needs to choose the right credit policy.
The financial crisis has already led to a curtailment of production, a fall in wages and incomes, which, in turn, results in a drop in demand. As a result, there is overstocking, a drop in business profitability, a decrease in the ability to service loan debt, that is, an increase in credit risk. Since credit risk, as a rule, constitutes a significant proportion of banks' overall risks, the severity of the consequences of this type of risk is maximal. When assessing the financial condition of counterparties during a crisis, the role of individual assessment versus the formalized one significantly increases, the role of liquidity and turnover indicators also increases, and fresh (current) data are used more for assessment. The practice of proactive monitoring of the financial condition of the counterparty in order to identify possible losses at an early stage, before the appearance of problem debt.
Lending carries high risks that can seriously affect the decline in profits. The lending process allows avoiding or minimizing credit risks, which determines the relevance of the research topic.
Lending is the main source of income. Therefore, an important direction of a commercial bank is the timely monitoring of the profitability and efficiency of the loan portfolio.
The aim of the course work is to study various approaches to the formation of an optimal loan portfolio in a crisis.
In accordance with the set goal, the following tasks are being solved:
· To investigate the essence and classification of lending operations of commercial banks;
· To analyze the activities of banks in the credit market of Russia at the present stage;
· Explore the theoretical aspects of assessing the creditworthiness of the borrower.
1. Classification of credit transactions and their legal regulation in the Russian Federation
Credit - lending money or goods, as a rule, with the payment of interest; value economic category, an integral element of commodity-money relations. The emergence of credit is directly related to the sphere of exchange, where the owners of goods oppose each other as owners who are ready to enter into economic relations.
The possibility of the emergence and development of credit is associated with the circulation and circulation of capital. In the process of movement of fixed and working capital, resources are released. The means of labor are used in the production process for a long time, their value is transferred to the cost of the finished product in parts. The gradual recovery of the value of fixed capital in monetary form leads to the fact that the released funds are deposited in the accounts of enterprises. At the same time, at the other extreme, there is a need to replace worn-out means of labor and rather large one-time costs. Processes similar in nature take place in the movement of working capital. Moreover, here fluctuations in the circuit and turnover manifest themselves in a more diverse way. So, due to the seasonality of production, uneven supplies, etc., there is a discrepancy between the time of creation and circulation of products. Some subjects have a temporary surplus of funds, while others - their lack. This creates the possibility of the emergence of credit relations, that is, the loan resolves the relative contradiction between the temporary settlement of funds and the need for their use in the economy.
Credit relations in the economy are based on a certain methodological basis, one of the elements of which are the following principles:
1. The main feature of the loan is its repayment - the loan must be repaid. The economic basis for repayment is the circulation of funds from the borrower and their obligatory availability by the time of repayment.
2. Urgency - the loan should not just be repaid, but on time agreed by the parties. At the same time, there is the concept of an oncall loan, issued without specifying a repayment period - on demand conditions. Moreover, according to Art. 810 of the Civil Code of the Russian Federation, if the repayment period is not established by the contract or is determined by the moment of demand, then the loan amount must be returned by the borrower within 30 days from the date the creditor submits a request for this.
3. Payability - the borrower must pay the lender a certain fee for the temporary borrowing of funds from him. The economic content of payment is the transfer by the borrower of a part of the profit he received to the lender in the form of loan interest, which is a kind of loan price. It is expressed in the interest rate, which is the ratio of the lender's interest income to the loan amount. Its value depends on the term of the loan, the risk of its default, the security of the loan, the demand for it, the level and dynamics of inflation and other factors. The special nature of the relationship between the lender and the borrower may lead to the use of a zero loan interest rate (interest-free loan).
4. Security - the borrower's obligation to repay the loan is usually supported by a pledge of his property, or by the obligations of third parties in the form of sureties and bank guarantees. If the borrower fails to fulfill its obligations, the lender has the right to sell the pledged property or demand payment from the guarantors (guarantors). At the same time, there is the concept of a blank loan issued on a fiduciary basis without collateral.
5. Differentiation - means a different approach to granting a loan to different borrowers, depending on their creditworthiness, business reputation, credit history, experience with them and other nuances.
6. Purposeful nature - as a rule, a loan is issued for a specific purpose (to finance the acquisition of movable and immovable property, replenishment of working capital, project implementation). However, lending is also possible without specifying a goal - for the aggregate need of the borrower (untied loan).
The place and role of credit in the economic system of society is also determined primarily by the functions it performs, both general and selective.
1. Redistributive function. In a market economy, the loan capital market acts as a kind of pump that pumps out temporarily free financial resources from some areas of economic activity and directs them to others, providing, in particular, higher profits. Focusing on its differentiated level in various industries or regions, the loan acts as a spontaneous macro-regulator of the economy, ensuring the satisfaction of the needs of dynamically developing objects of capital investment in additional financial resources. However, in some cases, the practical implementation of this function can contribute to the deepening of imbalances in the market structure, which was most clearly manifested in Russia at the stage of transition to a market economy, where the flow of capital from the sphere of production to the sphere of circulation became threatening, including with the help of credit institutions. That is why one of the most important tasks of state regulation of the credit system is the rational determination of economic priorities and the stimulation of attracting credit resources to those industries or regions, the accelerated development of which is objectively necessary from the standpoint of national interests, and not exclusively of the current benefits of individual economic entities.
2. Savings in distribution costs. The practical implementation of this function directly follows from the economic essence of credit, the source of which are, including financial resources, temporarily released in the process of the circulation of industrial and commercial capital. The time gap between the receipt and expenditure of funds of business entities can determine not only the surplus, but also the lack of financial resources. That is why loans to fill a temporary shortage of own circulating assets, used by almost all categories of borrowers and providing a significant acceleration of capital turnover, and, consequently, saving general distribution costs, have become so widespread.
3. Acceleration of capital concentration. The process of concentration of capital is a necessary condition for the stability of economic development and a priority goal of any business entity. Real help in solving this problem is provided by borrowed funds, which can significantly expand the scale of production and, thus, provide an additional mass of profit. Even taking into account the need to allocate part of it for settlement with the lender, the attraction of credit resources is more justified than focusing solely on its own funds. However, it should be noted that at the stage of economic recession, the high cost of these resources does not allow actively using them to solve the problem of accelerating the concentration of capital in most areas of economic activity. Nevertheless, the function under consideration, even in domestic conditions, provided a certain positive effect, making it possible to significantly speed up the process of providing financial resources to areas of activity that were absent or extremely undeveloped during the period of the planned economy.
4. Service of goods turnover. In the process of implementing this function, credit actively affects the acceleration of not only commodity, but also money circulation, displacing cash from it, in particular. By introducing instruments such as bills of exchange, checks, credit cards, etc. into the sphere of monetary circulation, it provides the replacement of cash with non-cash transactions, which simplifies and accelerates the mechanism of economic relations in the domestic and international markets.
5. Acceleration of scientific and technological progress. In the postwar years, scientific and technological progress has become a determining factor in the economic development of any state and individual economic entity. The role of credit in its acceleration can be most clearly traced on the example of the process of financing the activities of scientific and technical organizations, the specificity of which has always been a greater than in other industries, the time gap between the initial investment of capital and the sale of finished products. That is why the normal functioning of most research centers (with the exception of those on budgetary funding) is unthinkable without the use of credit resources. Credit is also needed for the implementation of innovative processes in the form of direct implementation of scientific developments and technologies in production, the costs of which are initially financed by enterprises, including through targeted medium and long-term bank loans.
Bank lending as a workflow, i.e. as certain actions of participants in banking lending operations, primarily bank employees, is a set of relations between a bank, as a creditor and its borrower, regarding:
a) providing the borrower with a certain amount of money for the intended use;
b) their timely return;
c) receiving from the borrower payment for the use of the funds at his disposal.
The basis of a credit relationship, its essential element is trust between the borrower and the lender. The first must believe that the bank will provide the loan in the required amount and on normal terms on time, and the second must be sure that the borrower uses the loan correctly, and will return the earlier received amount on time and with the payment of the due interest. Trust is such a factor of credit relations, due to which they cannot be completely based on any formal verification procedures.
A bank loan can be provided to a borrower (legal entity or individual) for a variety of purposes, the most common of which are:
· An increase (replenishment) of the working capital of an economic organization (financing the seasonal needs of the organization, a temporarily increased amount of inventory, payment of taxes, etc.). In all these and similar cases, they talk about short-term lending;
· Financing of production costs, including the implementation of investment projects (project of expansion, reconstruction or modernization of enterprises), i.e. in general - an increase in capital. In this case, they talk about medium or long-term production (investment) lending;
· Consumer goals of an individual (purchase or renovation of housing, education, etc.), satisfied with a consumer (personal) loan.
Credit operations are the relationship between the lender and the debtor (borrower) regarding the provision (receipt) of funds for temporary use on the terms of payment, urgency and repayment. This refers precisely to the content of the actions of the participants in the relationship, primarily bank employees.
The structure of credit investments is based on the classification of bank loans, which is carried out according to various criteria (Fig. 1.1).
There is an interpretation given by Yu.E. Menger: “The form of a loan is a combination of a number of elements that determine the main features of credit relations, which are interconnected and designed for a specific type of credit relations”. Suvorov A.V. A client for a bank or a bank for a client? // Finance and credit. 2007. No. 6. P.24 ..
According to O.G. Semenota: "In a market economy, credit is divided into bank, commercial, consumer, state, and international credit" Yampolsky M.M. On the interpretation of credit // Money and Credit - 2007 No. 4. P. 140 ..
Bank credit is one of the most common forms of credit relations in the economy, the object of which is the process of transferring funds into a loan. A bank loan is provided exclusively to financial institutions licensed from the Central Bank to carry out such operations. The role of the borrower is played by legal entities, the instrument of credit relations is a loan agreement. The bank receives income from this form of credit in the form of loan interest or bank interest G. N. Beloglazova, G. V. Tolokontseva. Money circulation and banks: Textbook - Finance and statistics, M., 2007, S. 328 ..
Rice. 1. Classification of bank loans
The most common methods of lending to enterprises (legal entities) is the provision of the following credit services:
· Opening a credit line, i.e. conclusion of an agreement (agreement) on the maximum amount of the loan that the borrower can use within a specified period and subject to certain conditions of the agreement. The opening of a credit line should also be understood as the conclusion of an agreement for the provision of funds on any terms other than the terms of a one-time loan agreement. Repayment of a loan within the framework of a credit line can occur both in certain terms and as funds are received on the account of the borrower;
· Crediting by the bank of the settlement (current, correspondent) account of the client of the bank in case of insufficient or lack of funds on it and payment of settlement documents received in the name of the client. Such a loan is called overdraft;
· Participation in the provision (placement) of funds to a bank client on a syndicated (consortium) basis (several banks are combined to issue a large loan);
· Syndicated lending. The creation of banking syndicates pursues the following goals: increasing the scale of operations by attracting additional resources, distributing risks, maintaining a certain level of liquidity. Organizations and banks, through a syndicated loan, finance needs usually associated with foreign economic activity, as well as with the investment sphere, the implementation of large-scale activities in such industries as energy, ecology, and the introduction of scientific and technical developments.
Active and passive banking operations. In the first case, the bank gives a loan, i.e. acts as a creditor, in the second takes a loan, i.e. is the borrower. The bank can enter into credit relations (take or give loans) with other banks (credit institutions), including the Central Bank, performing an active or passive function, depending on the situation. In this case, there is interbank lending. As for all other enterprises, organizations, institutions and individuals (non-financial sector of the economy), the bank's credit relations with them are of a different nature - here the bank is almost always the party that gives the loan.
According to the degree of security, loans can be distinguished with full (sufficient), incomplete (insufficient) security and without security. Full collateral is available if the amount of collateral is equal to or higher than the amount of the loan provided. Incomplete collateral arises when its cost is less than the size of the loan. The loan may not be secured. Such a loan is called blank. Most often, it is provided if there is sufficient confidence of the bank in the borrower, the bank's confidence in the return of funds provided to the borrower for temporary use.
Targeted loans are provided for a specific (target) object. Since a borrower may have several private goals, he will have as many loan accounts as there are separate targets. When lending aggregate needs, the debt is recorded in one loan account. The first group includes payment and overdraft loans (loans provided for the payment of wages; completion of the offset of mutual claims, issuing a letter of credit and the purchase of checkbooks). The second group includes loans designed to meet the needs of the borrower during the production and trading cycles. These are loans for the accumulation of inventories, production costs for gold mining, for trade and intermediary operations (including loans intended to finance internal and external trade contracts, purchase of durable goods by retailers in installments). The third group includes loans related to the need for capital gains, in modern domestic practice - a loan for the provision of working capital in the current year.
The specific form of the loan depends on the needs of the borrower, the aspect ratio is determined and fixed in the loan agreement Medvedev N.I., Sergin A.M. On lending activities of banks // Money and Credit - 2007 - No. 7. P. 27 ..
The above classification of banking credit operations (like any other) summarizes Russian and foreign experience in this area, but cannot be considered exhaustive. New types and forms of bank loans are constantly emerging. This classification is very conditional, since in practice any loan meets not one, but several criteria and can serve as an illustration for several classification groups.
The legal framework for the conduct of credit operations by Russian commercial banks includes: several general rules from Part II of the Civil Code of the Russian Federation and more specific rules contained in two main banking laws.
"Civil Code of the Russian Federation (part two)" dated 26.01.1996 N 14-FZ (adopted by the State Duma of the Federal Assembly of the Russian Federation on 22.12.1995) (as amended on 17.07.2009)
Art. 819 Loan agreement
1. Under the loan agreement, the bank or other credit organization (lender) undertakes to provide money ... (loan) to the borrower in the amount and on the terms stipulated in the agreement, and the borrower undertakes to return the amount received and pay interest on it.
Art. 820 Loan agreement form
The loan agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the loan agreement. Such an agreement is considered null and void.
Art. 821 Refusal to provide or receive a loan
1. The lender has the right to refuse to provide the borrower with the loan provided for in the loan agreement in whole or in part if there are circumstances that clearly indicate that the amount provided to the borrower will not be returned on time.
2. The borrower has the right to refuse to receive a loan in whole or in part, notifying the lender of this before the term for its provision established in the agreement, unless otherwise provided in the law, other legal acts or the loan agreement.
3. In case of violation by the borrower of the obligation of the intended use of the loan (Article 814) provided for in the loan agreement, the lender also has the right to refuse further lending to the borrower under the agreement.
The existence of an agreement cannot give the lender full confidence in its performance; in order to give the parties additional guarantees, the law provides for the possibility of their conclusion of special agreements on securing the basic obligation.
Art. 329 Methods of securing the fulfillment of obligations
1. Fulfillment of obligations may be secured by forfeit, pledge, retention of the debtor's property, surety, bank guarantee, deposit and other methods provided by law or contract.
2. The invalidity of the agreement on securing the fulfillment of the obligation does not entail the invalidity of this obligation (the main obligation).
3. The invalidity of the main obligation entails the invalidity of the obligation securing it, unless otherwise provided by law.
The most common method is considered a forfeit. This is the amount of money that the debtor is obliged to pay to the creditor in the event of default or improper performance of the obligation. The penalty is convenient in that the penalty amount is levied for the very fact of the violation of the obligation, and the creditor is not obliged to prove the damage caused to him. The payment of a forfeit may be provided for in an agreement or law.
The traditional way of securing loan repayment is collateral. The pledge secures the claim in full by the time of satisfaction, covering the accrued interest, forfeit, compensation for losses caused by non-performance, as well as the necessary expenses of the pledgee for the maintenance of the pledged thing and collection costs. A special case of collateral is a mortgage, i.e. mortgage of real estate.
The right of retention is the right of a creditor to withhold, in order to secure the performance of an overdue obligation, the things of the debtor that are in his possession for whatever reason until the fulfillment of a certain obligation. Withholding is possible and convenient when the creditor has a thing to be transferred to the debtor.
The main difference between a surety and a bank guarantee from other methods of security is the involvement of third parties in the obligation.
Federal Law "On Banks and Banking Activities" No. 395-1 dated 02.12.1990 determines that:
A credit institution is a legal entity that, in order to generate profit as the main purpose of its activities, on the basis of a special permit (license) of the Central Bank of the Russian Federation (Bank of Russia), has the right to carry out banking operations provided for in this law.
Bank is a credit institution that has the exclusive right to carry out in aggregate the following banking operations: attraction of funds from individuals and legal entities to deposits; placement of these funds on their own behalf and at their own expense on the terms of repayment, payment, urgency.
Art. 5 Banking operations and other transactions of a credit institution
Banking operations include:
1) attracting funds from individuals and legal entities in deposits (on demand and for a specified period);
2) placement of the attracted funds specified in clause 1 of part one of this Article on its own behalf and at its own expense;
3) opening and maintaining bank accounts of individuals and legal entities;
4) making settlements on behalf of individuals and legal entities, including correspondent banks, on their bank accounts;
5) collection of cash, bills of exchange, payment and settlement documents and cash services for individuals and legal entities;
6) purchase and sale of foreign currency in cash and non-cash forms;
7) attraction of deposits and placement of precious metals;
8) issuance of bank guarantees;
9) making money transfers on behalf of individuals without opening bank accounts (except for postal orders).
A credit institution, in addition to the above operations, is entitled to carry out the following transactions:
1) issuance of guarantees for third parties, providing for the fulfillment of obligations in cash;
2) acquisition of the right of claim from third parties for the fulfillment of obligations in cash;
3) trust management of funds and other property under an agreement with individuals and legal entities;
4) carrying out operations with precious metals and precious stones in accordance with the legislation of the Russian Federation;
5) lease to individuals and legal entities of special premises or safes located in them for storing documents and valuables;
6) leasing operations;
7) provision of consulting and information services.
Art. 24 Ensuring the financial reliability of a credit institution
A credit institution is obliged to classify assets, distinguishing doubtful and bad debts, and to create reserves (funds) to cover possible losses.
The credit institution is obliged to comply with the mandatory ratios established in accordance with the Federal Law "On the Central Bank of the Russian Federation" No. 86-FZ dated June 10, 2002. The numerical values of the mandatory ratios are established by the Bank of Russia in accordance with the said law.
Art. 4 Bank of Russia
1) is the lender of last resort for credit institutions, organizes their refinancing system;
2) establishes the rules for making settlements in the Russian Federation;
3) establishes the rules for conducting banking operations;
4) establishes the rules of accounting and reporting for the banking system of the Russian Federation.
Art. 28 Interbank transactions
Credit organizations on a contractual basis can attract and place funds from each other in the form of deposits, loans. In the event of a lack of funds for lending to customers and fulfilling its obligations, a credit institution may apply for loans to the Bank of Russia on terms determined by it.
Art. 29 Interest rates on loans, deposits and commissions on the operations of a credit institution
Interest rates on loans, deposits and commission fees on operations are set by the credit institution by agreement with customers, unless otherwise provided by federal laws.
A credit institution does not have the right to unilaterally change interest rates on loans, deposits, commissions and the duration of these agreements with clients, except as otherwise provided by federal law or an agreement with a client.
Art. 30 Relations between the Bank of Russia, credit institutions, their clients and credit bureaus stories
Relations between the Bank of Russia, credit institutions and their clients are carried out on the basis of agreements, unless otherwise provided by federal law.
The agreement must indicate the interest rates on loans and deposits, the cost of banking services and the timing of their implementation, including the timing of processing payment documents, property liability for violation of obligations on the timing of payments, as well as the procedure for its termination and other essential terms of the agreement.
Members of a credit institution do not have any advantages when considering the issue of obtaining a loan or providing them with other banking services, unless otherwise provided by federal law.
A credit institution is obliged to provide all available information in the manner prescribed by the Federal Law "On Credit Histories" No. 218-FZ dated 30.12.2004. It is necessary for the formation of credit histories in relation to all borrowers who have agreed to submit it to at least one credit history bureau included in the state register of credit history bureaus.
Art. 34 Declaring debtors insolvent (bankrupt) and repayment of debt
The credit institution is obliged to take all measures provided for in the legislation of the Russian Federation to collect the debt.
A credit institution has the right to apply to an arbitration court with an application to initiate proceedings in an insolvency (bankruptcy) case against debtors who do not fulfill their obligations to repay the debt, in accordance with the procedure established by federal laws.
The main regulatory requirements of the regulator for the content and organization of the lending process in commercial banks are set out in a number of documents:
1. Regulation No. 54 of August 31, 1998 "On the procedure for the provision (placement) of funds by credit institutions and their return (repayment)":
1) Terms used and general provisions.
Clients - legal entities and individuals, including other banks, regardless of whether they have or do not have an account with this bank.
Placement (provision) of funds by the bank is the conclusion of a loan agreement between the bank and the client, drawn up taking into account the requirements of the Civil Code of the Russian Federation.
Money can be placed both in rubles and in foreign currencies in compliance with the requirements of the law.
The Bank develops and approves internal documents defining its credit policy, as well as accounting policy and approaches to its implementation, documents defining:
· Procedures for making decisions on the placement of funds by the bank;
· Distribution of functions and powers between divisions and officials of the bank, including internal rules for the allocation of funds, including the rules for lending to customers.
2) Requirements for the process of granting loans.
The bank issues loans in the following order:
· To legal entities - by bank transfer by crediting funds to a settlement, current or correspondent account;
· To individuals - by bank transfer by crediting funds to the person's account in the bank or in cash through the bank's cash desk;
· Loans in foreign currencies are issued to legal entities and individuals in a non-cash manner.
The bank issues loans in the following ways:
· One-time crediting of funds to bank accounts or the issuance of cash to the borrower - an individual;
· Opening a credit line;
· Crediting the client's account (in case of insufficient or lack of funds on it) and payment of settlement documents from this client's account (if such an operation is provided for in the terms of the bank account agreement). Crediting the account in case of insufficient or lack of funds on it must be carried out within the established volume limit and the period during which the client's arising credit obligations must be repaid;
· Participation of the bank in providing funds to the client on a syndicated basis;
· In other ways that do not contradict the laws and regulations of the Bank of Russia.
The loan is issued on the basis of an order duly drawn up by the specialists of the bank's credit department and signed by an authorized official of the bank.
The creditor bank is obliged to create reserves for possible losses from credit activities in the manner established by the Bank of Russia.
2. Instruction No. 110 of January 16, 2004 "On mandatory bank ratios" establishes numerical values and a methodology for calculating the following mandatory bank ratios:
Adequacy of the bank's own funds (capital);
Bank liquidity;
The maximum exposure to one borrower or a group of related borrowers;
The maximum size of large credit risks;
The maximum amount of loans, bank guarantees and sureties provided by the bank to its participants (shareholders);
The aggregate amount of risk for the bank's insiders;
Using the banks' own funds (capital) to acquire shares (stakes) of other legal entities.
3. Regulation No. 254 of March 26, 2004 "On the procedure for the formation by credit institutions of reserves for possible losses on loans, on loan and equivalent indebtedness."
The need to form a reserve is due to credit risks in the activities of banks. The Bank creates a provision for possible impairment of a loan (credit), i.e. for the possible loss of loan value (in whole or in part) due to the realized credit risk associated with this loan. The amount of such impairment is determined as the difference between the balance sheet value of the loan (the loan balance recorded in the bank's accounts at the time of its valuation) and its so-called fair value at the time of valuation (the current market value of the loan). However, the fair value of the loan should be measured on an ongoing basis from the date the loan is issued.
The reserve is formed for a specific loan or for a group (portfolio) of homogeneous loans. Forming the reserve, the bank, proceeding from the category of the loan, determines the size of the so-called estimated reserve, i.e. a reserve reflecting the amount of its possible financial losses on a loan, which will be caused as such, subject to the procedure for assessing credit risk factors provided for in the Regulation, but without taking into account the availability and quality of loan collateral.
2. Credit policy of the bank as a fundamental document for the implementation of bank lending
Before starting to issue loans, the bank must formulate its credit policy. The development of the bank's credit policy is one of the stages of planning the bank's credit activities. The credit committee, the bank's board of directors, managers and loan officers must develop a philosophy that covers all phases of credit activity. This philosophy, embodied in credit policy, is the initial and initial element of the bank's credit work. Once a credit policy is in place, specific loans are matched against it through a unified loan approval process.
The Bank's Credit Committee is responsible for the development of credit policy, which then submits this document to the Board of Directors for approval. The Credit Committee determines the credit policy of the bank as a whole and determines the possible risks assumed by the bank for various types of operations determined by the Management Board of the Bank. The approval of the bank's Board of Directors should follow only after careful consideration and discussion of the document. Thus, the directors' understanding of the goals and objectives of the bank's activities is communicated to the loan officers through the credit policy document.
In the credit policy document, the Credit Committee delegates decision-making authority to loan officers within the established limits. However, the Credit Committee cannot delegate to them its ultimate responsibility for loans issued to them. If there is no credit policy as a document in the bank, then the bank has no right to engage in lending at all.
At present, in domestic practice, practically all large and medium-sized banks have documents on credit policy. However, credit policy often serves to justify the requirements of supervisors and external auditors, and not to express an understanding of the situation in the field of building credit relations of a particular bank and the prospects for its development. To be effective, the credit policy must be subject to periodic revisions: at least once a year, the Board of Directors and bank employees must analyze this document, report in writing on its compliance with the real work of the bank for a given period. Each loan officer of the bank should be familiar with the document on the bank's credit policy and, ideally, have a copy of it for the reporting period.
The purpose of the bank's credit policy is to ensure a highly profitable placement of the bank's liabilities in credit products while optimizing risks and developing a client portfolio. The development of the client portfolio implies the attraction of new clients and the retention of the existing ones based on the diversification of the bank's loan products.
The general goal of the bank's credit policy can be detailed in the following areas:
1.determining the acceptable level of risk in light of the desired profitability;
2. maximizing long-term income;
3. ensuring adequate liquidity and risk diversification;
4. satisfaction of the credit needs of the society;
5. ensuring the uniformity of the bank's policies and procedures;
6. Ensuring compliance with laws and regulations.
When shaping credit policy, banks are guided by the following principles:
· Maintenance of the optimal structure of working assets, linked in terms of volumes and terms with liabilities;
· Ensuring the efficiency of operations related to the placement of funds, assuming an excess of income from the placement of funds over the costs associated with raising funds;
Security of operations related to the placement of funds, and maintaining the reliability and liquidity of the bank's work (the bank, by placing resources, seeks to receive income not at any cost, but taking into account the prospects for repayment of the loan, assessing the realities of the market in which it operates, taking into account the requirements of regulatory organs, etc.);
· Placement of funds taking into account the interests of the bank's shareholders;
· Meeting the market needs for loans within the scope of the bank's business activity.
Compliance with the above principles allows the bank to form both strategic and tactical directions in the organization of lending activities, thereby ensuring the efficiency and optimization of lending policy. The credit policy is determined under the influence of the strategic development goals of the bank. Each bank independently develops a document on credit policy: it can be drawn up for a long term (several years) with annual clarification of its provisions, as well as for the current reporting year (the second option is most widespread).
Among the factors influencing the formation of the loan portfolio of banks, the specifics of the banking market are distinguished. Each bank must take into account the need for borrowed funds of the main clients of the selected market sector. In addition, the structure of the loan portfolio depends on the size of the bank's capital. It is on this that the maximum loan amount provided to one borrower depends. Larger banks are usually wholesale lenders, channeling the bulk of their lending to corporations and other entrepreneurial firms. The key borrowers of the bank are JSC "Joint Stock Commercial Savings Bank of the Russian Federation", JSC "Vneshtorgbank", JSC "Gazprombank" and other large banks are powerful industrial and financial corporations and companies. At the same time, many large banks are also oriented towards providing small-sized loans to individuals, for example: JSC "Joint Stock Commercial Savings Bank of the Russian Federation", JSC "Bank Saint Petersburg" and others. The banks, which are not part of the large group, specialize in providing loans to small commercial and industrial companies.
Each bank must develop its own individual credit policy, reflecting its specific needs, and formalize it in the form of a document. In practice, the differences in the documents on credit policy stem from the specifics of banks, their goals, markets, financial structures, the size and structure of the resource base, the tension of the competitive situation, and the experience of staff. To be effective, the credit policy must be as concise and at the same time a sufficiently detailed document. A mandatory element of credit policy is sound advice for dealing with practical loan applications. When developing a policy, it is necessary to distinguish between policies and procedures. The policy establishes the philosophical foundations of the bank's lending activities, while the procedures should be reflected in the instructions, lending regulations, developed in addition to the document "Bank's lending policy".
Provisions to be reflected in the document "Bank Credit Policy":
1. Introduction. An introduction to a bank's lending policy formulates the reason for the need for an official lending policy document and, in short, the general philosophy of the bank's lending activities. The introduction also indicates, taking into account the requirements of which documents, the Bank's Credit Policy was developed (federal documents, regulations of the Bank of Russia and internal documents of a commercial bank).
2. Objectives of the bank's credit policy. The section sets out the most general goals and benchmarks that the bank intends to achieve in the field of lending. General goals and benchmarks should determine the priorities of the bank in terms of profitability, liquidity, profitability, maximizing income from long-term or short-term operations within the established risks
3. Administration of credit policy. The section establishes the procedures for updating, revising and implementing the bank's credit policy, identifying the officials responsible for the implementation of these procedures. In most cases, these are the bank's credit managers. Evaluation of the effectiveness of the bank's credit policy, its compliance with the reality of the market and the activities of the bank itself is made, as a rule, regularly at the end of each reporting year and is taken into account when developing credit policy for the next year. The policy can be revised more frequently if necessary. Credit managers present the results of the analysis to the Board of Directors. Approval and revision of the policy is recorded in the minutes of the meeting. One of the objectives of a policy audit is to ensure that the bank's policy continues to be in line with the bank's mission statements, mission and long-term and annual plans.
4. Mandatory loan approval criteria. The section defines the criteria for the acceptability of loan applications for the bank.
4.1 Purpose (purpose) of the loan, objects of lending. As a rule, banks establish eligible loan objects separately for short-term and long-term loans. The composition of credited objects is determined by banks independently, taking into account the interests of borrowers (legal entities and individuals). The objects of lending in domestic banks for short-term loans (in most cases for legal entities) are the following costs associated with:
· Purchase of inventory items (services) for the release of finished products;
· Trade and procurement activities;
· Sale of finished products and goods;
· Implementation of intermediary activities;
· Payment for contracts with foreign partners for the purchase of inventory items (loans in rubles provided for conversion, loans in foreign currency);
· Timely completion of settlements with a short-term gap between the receipt and expenditure of funds;
· Payment of wages (including for previous periods);
· Payments to the budget and extra-budgetary funds.
· Acceptable objects of lending in banks for long-term loans are:
1. the cost of purchasing equipment, real estate and intangible assets;
2. crediting of foreign trade operations, including with the use of letter of credit and bank guarantees;
3. pre-export financing;
4. costs for the development of science and the implementation of scientific research;
5. for the redemption of property (movable and immovable property);
6. to carry out transactions with securities;
7. to modernize and expand production.
All loans provided by the bank must have a clearly defined purpose (purpose), which must be fixed in the loan agreement.
4.2 Market area. The definition of the market area (segment) should be consistent with the objectives of the bank's long-term strategy. When choosing a segment, the bank's management should take into account its size and specifics, its experience, the ability of real monitoring of loans, as well as the bank's ability to withstand adverse factors. Permissible exclusions from the selected segment should be specifically specified in the policy.
4.3 The required level of profitability of the loan portfolio, its dynamics.
4.4 Sources of loan repayment. Loans are provided by the bank if the source of their repayment is clearly defined and fixed in the loan agreement, the scheme of repayment of the debt by the borrower or a third party is clear. Sources of loan repayment are: proceeds from the sale of products, future income of the borrower. The sufficiency of sources is determined by an assessment of the financial position of the borrower and the prospects for its development. If this (so-called primary) source of loan repayment is highly reliable, then the loan can be provided by the bank without collateral. The very need for collateral implies a higher level of risk, therefore secured (collateral, surety, etc.) loans have a higher degree of risk on average.
The bank's credit policy may permit the provision of loans without the borrower having a specific loan repayment program (for example, a line of credit to replenish the borrower's working capital secured by his assets). However, such loans must be clearly defined and under the special control of the bank.
In a credit policy document, it is sometimes easier to name loans that are undesirable for the bank than those that are preferable to it. Common characteristics of such unwanted loans may include:
· Loans for speculative purposes;
· One-time loans, on the basis of which it is impossible to establish long-term credit relations with the client;
· Loans unsatisfactory in terms of terms (taking into account the nature and urgency of the resources attracted by the bank);
· Loans to new enterprises, the level of capitalization of which is lower than the standards set by the bank.
1. Criteria of preference in the field of lending. Here the bank prescribes detailed priorities in the field of lending, keeping in mind the preferred ones for this bank:
· Geographic regions of placement of funds on the credit market and the ratio between them;
· Concentration of loans by industry;
· Structure of loans by terms, types of currencies;
· Priorities in relation to the subjects of crediting;
· The creditworthiness classes of borrowers with whom the bank works, and the differentiation of credit conditions for acceptable creditworthiness classes of borrowers;
· The planned level of the loan portfolio in the bank's assets;
· The planned level of prolonged loans, problem, overdue loans in the bank's loan portfolio;
· The maximum level of large loans, as well as loans of the bank's shareholders in the portfolio;
· Lending methods and customer service schemes;
· Forms of ensuring the repayment of loans, including detailed requirements for registration for each preferred form of security;
Methods of establishing loans (credit policy should establish approaches to the pricing of loans, taking into account such aspects as the level of credit risk, liquidity, sensitivity of the loan to fluctuations in market interest rates and bank rates, deposit balances, cost of loan servicing);
· The relationship of credit and deposit relations with the client. The policy should reflect the attitude of the bank to the presence of deposit relations with the client as a prerequisite for the provision of a loan; today, domestic banks give preference to their clients, including founders and established subsidiaries (dependent) companies;
· Equity lending - the attitude of the bank to the fact that the borrower also receives loans from other banks should be fixed in the policy;
· Combination of loans of varying degrees of risk as of reporting dates;
· The concentration of debt by the degree of risk is periodically analyzed by the bank's managers for compliance with the bank's credit policy;
· Methods of providing credit information (all loans must be supported by current up-to-date information - accounting (financial) statements, reports of credit bureaus, materials of a client's business survey and checks of loan collateral);
· Options for restructuring the loan portfolio in times of crisis.
2. Authority to grant loans. These powers can be delegated by the Board of Directors of the bank, depending on the size of the bank:
· Credit committees of various levels (the head office of the bank, branches), the Board of the bank, the composition of which is determined by the document on credit policy;
· Specific bank employees, for example, the head of the credit department (department), the manager of a bank branch;
· Specific employees or bodies of the bank who have the right to delegate the powers granted to them further down.
In the domestic banking practice, the first collegial option for approving the issuance of loans has received the greatest development.
At the same time, the credit policy of the bank should determine under what conditions and what loans should be approved directly by the bank's Board of Directors. These aspects usually include:
· Trends in the quality of the loan portfolio, reflected by the risk rating, lists of especially controlled (overdue, problem) loans;
· Loans granted to insiders of the bank, its subsidiaries and affiliates;
· Trends in the use of credit lines, overdrafts, letters of credit, guarantees;
· The types of loan applications that were rejected by the loan officers;
· Qualification of loan personnel and staffing.
This section of the bank's policy also determines the procedure for establishing credit limits for borrowers (groups of related borrowers). The maximum loan amount that can be issued to one borrower (a group of related borrowers) may comply with the regulatory requirements of the Central Bank of the Russian Federation, or may be set in a smaller amount at the discretion of the bank.
7. Administration of loans. The section defines the norms of responsibility for credit monitoring in the bank. The main subsections are as follows:
· Management of credit affairs; the policy should impose responsibility for opening and maintaining credit affairs, determine the procedure for completing them with the necessary documents, the conditions for establishing credit affairs and access to them;
· Security; the policy should define the responsibility of loan officers for the demand from the borrower (third party) of collateral, surety, bank guarantee, control and management of loan collateral;
· Monitoring of loans issued by the bank; here should be defined the duties of credit officers for further control over the loans provided, they include maintaining communication with borrowers and, if necessary, protecting the interests of the bank;
· Audit of loans; the policy, as a rule, establishes who should assess the quality of loans, with what frequency and for what purposes, as well as to which body of the bank should be provided the results of the assessment;
· Identification of problem loans and procedures for working with them. The following are determined: the criteria for assigning loans to this category, the responsibility of loan officers for identifying problem loans, procedures acceptable to the bank for working with such loans;
· Creation and revision of the provision for possible losses on loans. The policy establishes approaches to the formation of these reserves, the frequency of revision of the created reserves;
· Write-off of loans; here are listed the conditions under which loans are written off the bank's balance sheet (at the expense of the created reserve or at a loss), the conditions for monitoring the debt written off from the balance sheet are given.
The role and mechanism of implementation of the bank's credit policy.
· The lack of a bank's own credit policy means that it does not plan the credit process, which accordingly dooms the bank to unconditional failure, especially in the medium and long term;
· High-quality credit policy promotes meaningful coordination of the bank's efforts in the credit market. It also ensures the activities of the units involved in the credit process, significantly reduces the risk of incorrect management decisions, provides the bank's management with important criteria for assessing the quality of the loan portfolio and setting the credit process in the bank as a whole.
The function of the bank's credit policy is to optimize the credit process.
Having determined the main development guidelines for the near future, the key strategic objectives, the bank proceeds to develop the main directions for achieving the set goals along the lines of:
· Increase in equity and the volume of attracted resources;
· Increasing the efficiency of the bank's credit policy;
Intensification of investment policy
· Development of the branch network;
· Activation of client policy;
· Improving the management system of the bank and its activities;
· Improvement of banking settlement technologies;
· Development of international activities and operations in foreign currency.
The bank's services draw up a detailed, detailed action plan to implement the main directions of the bank's strategy.
"Credit Policy" - the main document guiding and regulating the bank's activities in the field of lending. Credit managers and their subordinates ensure that day-to-day operations are consistent with the credit policy document. In this regard, all provisions of the document on credit policy must be supported by practical measures that are designed to ensure its implementation. Such measures must be considered and approved by the bank's management, and the corresponding decisions must be formalized in the form of documents.
These measures should include those that will enable the bank to:
· Expand the resource base;
· Establish and, if necessary, revise the values of acceptable risks and credit limits;
· Diversify your credit services and improve their quality, expand the clientele of borrowers;
· To better orient the creditworthiness of borrowers, guarantors, guarantors, to achieve an increase in the level of loan repayment;
· To form reserves for credit risks in a timely manner and in the required volume;
· To improve the organizational, information-analytical and methodological support of the credit process.
These measures as procedures are implemented in a set of instructional and methodological materials, which are mandatory for each bank, regulating various aspects of organizing its work in the credit market. This set of materials includes:
1. Regulations on the credit department of the bank;
2. Job descriptions of employees of the credit department;
3. Regulations (regulations) on credit transactions; in its most desirable form, it may include the following sections:
A list and content of documents provided by potential borrowers, as well as the requirements imposed on them by the bank,
Calculation, approval and verification of compliance with credit limits for borrowers,
Consideration of loan applications and authorized issuance of loans,
Preparation and conclusion of loan agreements, authorization of their prolongation,
Interaction of departments involved in the credit process,
Providing loans, servicing and repaying debt,
Reflection in the accounting of loan operations
1. Regulation on the provision of interbank loans and the placement of deposits in other banks. The Regulation provides for:
· A list and characteristics of the documents required to be provided by borrowing banks to the creditor bank for obtaining a loan;
· The procedure for calculating and using risk limits when performing transactions on the domestic interbank market and on deposit transactions with non-resident banks;
· The procedure for the operational management of the bank's resources based on the policy of managing the assets and liabilities and liquidity of the bank;
· The procedure for authorizing the issuance of interbank loans; the procedure for reflecting transactions in accounting;
2. Certain provisions on lending to legal entities in the context of types of lending acceptable to the bank (one-time loans, overdrafts, open lines of credit, factoring, mortgage, investment loans, etc.);
3. Regulations on lending to individuals for consumer purposes, for entrepreneurial activities, etc .;
4. Provisions (Methods) on working with security obligations to repay loans used in the bank and on the procedure for their registration;
5. Provisions on the procedure for providing guarantees in favor of third parties;
6. Regulations on the procedure for accounting for promissory notes and promissory notes lending to borrowers;
7. Regulations on the procedure for the formation and use of reserves for possible losses on loans and debt equated to them;
8. Regulations on the Bank's Credit Committee;
9. Methodological guidelines for the analysis:
The financial condition of borrowers, including banks,
The quality of the bank's loan portfolio,
· Fulfillment of loan agreements;
10. Techniques:
Calculating the price of loans, reflecting the accrual and payment of interest for loans on accounting accounts,
Determining the sufficiency and liquidity of the pledged items,
Conducting interviews with borrowers, third parties,
· Checking the borrower's credit history, obtaining additional information about him from third parties.
In this regard, in theory and in practice, there are three types of risky strategies in the field of lending.
1. High-risk strategy. It can lead to an increase in the profitability of the bank, assumes a general focus on a significant weight of high-risk and, at the same time, highly profitable operations. This strategy has a limitation: its implementation is possible within a short period of time and subject to a relatively stable macro environment, the availability of an effective marketing service and highly qualified personnel at the bank.
2. Risk diversification strategy. It enables a rational balance of profitability and reliability of the bank. However, when implementing such a strategy, the bank is often forced to abandon highly profitable transactions with a relatively high degree of risk.
3. Strategy to minimize risk. It increases the bank's reliability, on the one hand, but means a practical abandonment of highly profitable operations, which ultimately worsens the bank's profitability indicator.
Depending on the economic situation in the country, the state of competition in the banking market and its financial position, the bank chooses a specific strategy in the field of lending at one time or another.
3. Problems of forming an optimal loan portfolio
The general economic situation led to a slowdown in the growth of retail lending. The total volume of loans to individuals increased in 2009 by 35.2% - up to 4017.2 billion rubles. (in 2008 - by 57.8%), and their share in the assets of the banking sector decreased from 14.8% to 14.3%. The data on the size of loans are shown in Table 1.
Table 1
Loans, deposits and other placed funds (according to the data of the Bank of Russia), at the beginning of the month, billion rubles
|
Total amount of allocated funds |
|||||
|
loans and other allocated funds provided to organizations |
loans, deposits and other placed funds provided to credit institutions |
loans to individuals |
|||
|
September |
|||||
|
September |
|||||
Sberbank remains the leader in the lending segment, which reduced the volume of loans issued in 2009 (compared to 2008) by only 11.5%. Most of the largest market participants demonstrated a decrease in lending volumes by more than 20%. Among the leaders in the fall are Uralsib (-59.11%), VTB 24 (-56.82%) and UNIASTRUM BANK (-58.67%). Moreover, the highest rates of decline were shown by those banks that were characterized by long lending terms. So, in banks Vozrozhdenie and Center Invest, which showed the least strong drop among banks from the TOP-10, 85% of all loans were issued for a period of up to 1 year, while the share of long-term loans in UNIASTRUM BANK, VTB 24 and Promsvyazbank exceeded 70% www. cbr.ru.
Among the market participants that demonstrated the highest growth rates were both large players - Tatfondbank (over 3000%), NB TRUST (66%), and regional banks - Ring of the Urals (over 3500%), Asian-Pacific Bank (244%), Metcombank ( 156.37%) and KAMABANK (273.07%). The reason for achieving such results in most cases is the strengthening of work in the segment with an initially lower base. For example, the results of Kamabank are explained, in particular, by the gradual reorientation of the bank from mortgage lending to work with small and medium-sized businesses, which began at the end of 2008.
Table 2 shows the largest banks in the Russian Federation that provided loans to small and medium-sized businesses in 2009.
table 2
The largest banks lending to small and medium-sized businesses
|
Loans issued to SMEs for 2009, thousand rubles |
Growth rate 2009/2008 |
|||
|
Sberbank of Russia** |
About 500 billion rubles |
|||
|
Bank "Revival |
||||
|
KB Center-invest |
||||
|
Tatfondbank |
||||
|
SEVERGAZBANK |
||||
|
Promsvyazbank |
||||
|
UNIASTRUM BANK |
||||
|
KB AGROPROMCREDIT |
||||
|
LOKO-Bank |
||||
|
Kurskprombank |
||||
|
KB Khlynov |
||||
|
Regiobank |
||||
|
KB URAL RING |
The share of loans and other placed funds (in rubles and foreign currency) provided to organizations for a period exceeding 1 year, in the total volume of loans issued to them and other placed funds, distributed by maturity, as of December 1, 2009. amounted to 69.3% against 68.2% as of November 1, 2009.
The following features are characteristic of the modern practice of lending to small businesses:
Lending purposes: replenishment of working capital, purchase of vehicles, equipment, real estate, covering cash gaps, purchase of non-current assets, investment lending, repair of retail or industrial premises, purchase of goods, opening retail outlets, expansion of production, acquisition of fixed assets, business development;
· Lending terms - from 30 days to three years, depending on the purpose of lending;
· Interest rates on loans - from 10% to 30% depending on the type of loan;
· The amount of loans provided ranges from 5 thousand to 10 million rubles;
· Security - goods in circulation, equipment, vehicles, securities, real estate, personal property of the owner of the enterprise, acquired property;
Participation of third parties - international financial organizations, the Government, non-governmental public organizations, insurance companies, collection agencies, appraisal companies, etc.
Despite some recovery in the market, the persisting macroeconomic risks are forcing banks to minimize their dependence on the long-term state of the economy and lend short-term, on the assumption that the situation will be relatively stable, at least in the near future. At the end of 2009, 66% of loans were issued for up to 12 months, and taking into account overdrafts, this figure is more than 70% (Fig. 2). Note that in 2008, only 46% of all loans (excluding overdrafts) were issued for up to 12 months.
The sectoral structure of the market indicates a significant decrease in the share of trade enterprises in loans issued: if in 2008 the share of loans issued to retail and wholesale trade organizations accounted for 51% of the total volume of lending to SMEs, then in 2009 it fell to 39% (Fig. 3 ). The reason for this decline lies in the fact that during the crisis, the main type of collateral characteristic of trade enterprises - goods in circulation - is viewed with skepticism by most banks.
At the same time, only wholesale trade actually suffered - its share in the volume of loans issued decreased from 31% to 20%, while the share of retail decreased by only 1 percentage point. This is because wholesalers deal with a range of small traders and, in general, their risks are more difficult to calculate than retailers. At the same time, the bulk of retailers are focused on everyday goods, characterized by a rather low price elasticity of demand, which has a supporting effect on this market segment during the crisis.
Rice. 2. Structure of loans issued by maturity in 2009
Rice. 3. Sectoral structure of loans in 2008-2009.
On the other hand, the share of loans issued to construction companies increased over 6 months of 2009 by 6%. This dynamics looks surprising, given that the deterioration in the quality of borrowers has affected this segment to the greatest extent. At the same time, in our opinion, this fact is a consequence of active on-lending of borrowers, which a number of banks began to practice during the crisis. The essence of this tool is that on the same day, the formal loan repayment takes place first, and then almost immediately the borrower is issued a new loan. As a result, on-lending makes it possible to mask the deterioration in the quality of the loan portfolio, create smaller reserves and, as a result, reduce the pressure on capital. However, in the future, this practice may have an extremely negative impact on the quality of assets and financial stability of credit institutions. However, the share of construction companies in the segment of lending to small and medium-sized enterprises (SMEs) is not large enough to exert the same strong pressure on bank capital and profitability as builders from the corporate segment.
Another sector that showed growth is manufacturing: the share of loans received by borrowers from this industry increased over the six months from 12% to 16%. Many of them are able to offer relatively solid collateral - production facilities, which are most often owned by them, which acts as one of the incentives for a more active expansion of lending from banks.
Among the problems of the development of banking credit operations, the most urgent at the present stage are the following:
Have most of our banks don't have enough money(own and attracted) in order to issue loans for large amounts, which are sometimes required by large enterprises, or at the same time many different loans to a significant number of borrowers.
Sources of replenishment of bank resources are well known, such as:
· Funds of enterprises and organizations;
· Funds of the population;
· Own funds (part of the profit) of banks.
In the past few years, Russian banks have been increasing their capital mainly at the expense of their own profits, but during the crisis there was virtually none. They also try to attract money from the population, enterprises and organizations, including foreign organizations, including in the form of so-called subordinated loans and borrowings, but this method mainly forms short-term liabilities (except for subordinated loans and borrowings and funds newly contributed to authorized capital) ...
Although the growth of bank liabilities due to deposits of enterprises and organizations is taking place, it is very difficult, since the financial situation of most Russian enterprises remains extremely tense at best.
A potential channel for the formation of long-term liabilities by banks is the funds of pension and mutual funds. However, the practical use of this channel in Russia is associated with significant difficulties, which is primarily due to legislative restrictions on the operations of funds: the bulk of their funds should be placed in government securities of the Russian Federation and the constituent entities of the Russian Federation, in bonds and shares of Russian issuers created in the form of open joint stock companies, and mortgage-backed securities issued in accordance with the legislation of the Russian Federation. Although the legislation in principle allows the placement of pension funds in ruble and foreign currency deposits in Russian credit institutions, in practice this channel for the formation of long-term liabilities by banks does not work.
One of the possible ways for banks to rapidly build up assets is to attract foreign capital into the country's banking system. This process can and does take place in different forms:
· Entry of foreign legal entities and individuals into the authorized capital of Russian banks (acquisition of a strategic investor);
· Sale of domestic credit institutions to foreign persons;
· Obtaining by our banks of credits and loans abroad, including from foreign organizations;
· Cooperation of banks with foreign insurance companies, etc. In this way individual Russian banks solve some of their problems, although at the same time they give rise to other problems. However, for the banking system of Russia as a whole, this method is associated with such a strategic risk as the possibility of the situation developing according to the Eastern European scenario, i.e. the possibility of transferring complete control over the national banking system into the hands of foreigners, which cannot be considered acceptable, since the national banking system is a necessary component of national economic and political sovereignty.
All Russian banks have too few “long-term resources” (the overwhelming majority of liabilities can be obtained for short periods of time) for this to be able to issue loans not only for short and medium, but, if necessary, for long periods (over 3-5 years) ... The very resource base of the Russian economy (meaning its part in the banking sector) is simply incomparable in volume to the scale of the entire economy. In terms of capital, assets, and loan portfolio, the Russian banking sector as a whole is a financial dwarf compared to many not even the largest individual foreign banks.
This happens for several reasons, the main of which are the following:
Firstly, because the state artificially deprived banks of pension funds, insurance funds, budget funds. This was done under the pretext that budget money should be under the control of the Federal Treasury (a structural unit of the Ministry of Finance). As a result, the state, like an avaricious knight, “sat” (before the world economic and financial crisis) on huge amounts of money and did not tuck it into any useful business, thinking in this way to “crush” inflation.
A vivid contradiction has developed: the state, accumulating huge resources belonging, among other things, to the entire Russian society, has allocated in recent years an extremely insignificant part of funds to build up economic potential, considering that this is "extra" money and the domestic economy is not able to master it, the mood was diametrically opposite - it does not agree with either the mortification of funds, or with the too modest pace of economic and social development. It turned out according to the formula: "the lower classes can, but the upper classes do not want to."
One can only be surprised that someone in the power structures believes or believed that public funds can be saved by hiding them from society, from the economy in a separate "box". With such a financial ideology, it remains to take a truly last step towards giving up money altogether, as in the years of "war communism".
The authorities argued that if budgetary, pension and other similar funds were returned to the bank circulation, then the money could be stolen. However, this is not an argument or a way to "save" funds. After all, it was not the banks that stole budget funds. Officials could and can do this in all cases - with or without banking instruments.
There is another side of the question here. It is clear that the Treasury has to control how public funds are allocated and used. But it does not follow from this that this body should perform the functions of banks in terms of settlement and cash services for enterprises and organizations that have received any budget money. The budgetary control exercised by the Treasury over the targeted distribution and use of funds, and settlement and cash services, which, according to our own legislation, are only entitled to be carried out by credit institutions, are completely different things.
Secondly, the largest and richest domestic companies, including state-owned ones, often keep their considerable spare money in foreign banks, thereby financing the economies of foreign countries, although the rest of their economies are suffocating from the lack of available financial resources.
Thirdly, there is such a reason as the high cost of funds attracted by our banks. It is formed as a result of the action of a number of factors, of which the following can be noted:
· The refinancing rate supported by the Central Bank;
· Inflation rate;
An administrative burden, not cheap and in a financial sense, imposed on banks in the form of the need to perform a number of functions that are not inherent to them (currency control, control over the cash discipline of clients, countering the legalization of proceeds from crime, ensuring that taxpayers - clients of banks fulfill the obligation to pay taxes and fees, etc.);
· The need to spend considerable effort, time and money on the preparation and submission to various authorities of huge volumes of all kinds of reports.
Objectively, the risks are very high, which are taken over by banks lending to domestic enterprises, organizations and individuals. This is also due to a number of reasons, but the main one is that there are too many unprofitable and marginal industries in the Russian economy.
To reduce the risks of lending, it is necessary, first of all, to strengthen the economy of enterprises and organizations by giving them the necessary prospects and possible guarantees, by creating appropriate general conditions for their confident functioning, to put things in order in settlements for government orders, etc. Of particular importance is the quality of accounting and reporting at enterprises and organizations. A loan cannot be issued reasonably if the borrower's balance sheet and other information provided by him does not reflect his real situation.
The socio-economic and financial policy of regional authorities and local self-government bodies is of great importance for expanding lending to production.
Other reasons hindering the development of the banking credit process are:
· Ignorance or too superficial knowledge by employees of most banks of the specifics of the activities of their clients - manufacturing enterprises, which prevents them from communicating with the latter "in the same language", to adequately understand their problems and, accordingly, to find ways to solve them that suit both parties, to competently conduct an on-site check , to determine the true creditworthiness of the enterprise - a potential borrower. Bank customers know unforgivably little about banking;
· Poor processing in many banks of even basic banking financial technologies, not to mention management technologies;
· The absence of a full-fledged and internally consistent set of internal management and regulatory documentation in almost every bank. There are banks that do not even have regulatory acts;
· Lack of business culture in the majority of economic entities. Thus, potential borrowers of a bank are often unable to prepare a business plan, to make a feasibility study (feasibility study) of their project;
· Defects in management and low transparency of borrowers, the lack of liquid property in many of them, which could serve as collateral for loans, or guarantees and sureties.
The role of the Central Bank and the Government of the Russian Federation is not active enough in creating conditions for a more intensive development of the country's banking sector in general and expanding opportunities for the capitalization of banks and further activation on this basis of their lending activities in particular.
As experts rightly point out, the monetary policy of the Government and the Central Bank of the Russian Federation should contain a section on the development of the credit market, specific mechanisms to stimulate lending, especially in the part of the long-term loan market. So far, there is no adequate response to this obvious need. The monetary authorities, demonstrating wonders of economic logic, answer that developing the credit market means increasing the money supply, and this will lead to an increase in inflation, while the main task of monetary policy along the same "logic" is to suppress inflation. It turns out that our monetary authorities have mastered well (before the global crisis that began at the end of 2008) only one operation with money - its sterilization as a dangerous economic phenomenon. "
The infrastructure supporting the credit process is clearly underdeveloped, including two blocks - external and internal. The external block can include all the collateral that operates outside the bank (the activities of various bodies and auxiliary organizations), the internal block - everything that the bank creates to support its credit process. Common to both blocks is the level of scientific, legislative, regulatory, technological, informational, methodological, and personnel support of the credit process they maintain.
Thus, the information support of the credit process requires serious improvement, including the provision of statistical information, audit and "rating" of banks, the work of analytical services of banks. Methodological support is in need of fundamental improvement and enrichment, in particular, through instructions and recommendations of regulatory bodies on issues arising in the lending process. The preparation of such teaching materials cannot be considered the exclusive task of the Bank of Russia. Since the commercial banks themselves need this, they could develop a complete package of relevant standardized materials through their associations and use them together.
Banks face many artificially created lending difficulties... So, bankers rightly believe that if you work in accordance with the provisions of the Central Bank of the Russian Federation No. 254 "On the procedure for the formation by credit institutions of reserves for possible losses on loans, on loan and equivalent debt", then in the country, in principle, there are no borrowers who can it would be to issue a loan of the 1st (credit with zero risk), or even the 2nd quality category (credit with a moderate level of risk). It is not normal when such documents are written and accepted without taking into account the realities of the economy. This narrows the resource base of banks and reduces the chances of their clients for obtaining loans. As a result, the development of the economy is hampered.
The rights of credit organizations as creditors are poorly protected... Legislation and regulatory framework in this area contain significant gaps, which have created unique conditions for fraud on the part of unscrupulous borrowers, illegal "withdrawal" of assets from enterprises and organizations-debtors even in the course of competitive procedures, complicating, and sometimes making it impossible for banks to collect debts, leading to an increase in the share of problem loans in the total loan portfolio of domestic banks. In judicial practice, stereotypes also dominate, infringing on the interests of bona fide creditor banks.
This situation is ultimately due to a lack of understanding by both state institutions and the general public about the systemic role of banks in the country's economic life. Meanwhile, the creation of reliable guarantees for the repayment of debts in lending is in the interests of society for several reasons. Firstly, banks perform operations at the expense of funds attracted, among other things, from private depositors who trust them with their savings. Therefore, the situation when banks do not have guarantees of repayment of debts by borrowers jeopardizes the safety of funds of a wide range of citizens. Second, the lack of predictable debt recovery mechanisms makes lending less affordable for businesses. Thirdly, banks are forced to redistribute high risks between borrowers by raising rates. And it turns out that it is the conscientious borrowers who have to compensate the banks for the risks associated with ineffective debt recovery mechanisms.
A fundamental and modern solution to the problem of expanding the small business lending sector by Russian banks could be the refinancing of banks' loan portfolios secured by rights of claim under loan agreements concluded by them with small businesses, using capital market instruments, for example, by issuing bonds. The stock market will receive a new investment instrument, and less risky than an unsecured corporate bond. It seems appropriate to consider the RF Stabilization Fund as one of the sources of refinancing. The resources of the Federation Council will be channeled through banks for the implementation of business projects of small enterprises and will actually be able to lay the foundation for a future “non-resource economy”.
This instrument will expand the financial capabilities of banks in terms of granting loans to small businesses and in terms of reducing the interest rate on loans. At the moment, this financial instrument is not used in the Russian Federation due to the lack of legal regulation of this market segment.
The current legislation provides for the issue of bonds secured by a pledge of rights of claim on mortgage loans (more precisely, by a pledge of mortgage coverage, which includes, among other things, the specified rights of claim). The regulation of these relations is carried out on the basis of Federal Law No. 152-FZ of 11.11.2003 "On Mortgage Securities". To date, only a few issues of mortgage-backed securities have been carried out, which can be partially explained by the rigidity of the law and the underdevelopment of the mortgage lending market. The law establishes a large list of special requirements for loans, the rights of claims for which can be included in the mortgage coverage. With the exception of the rights of claims for mortgage loans, the transfer of the rights of claims for other loans (loans), in particular those granted to small enterprises, as security for rights under securities is not provided by law, which should be changed.
Conclusion
The Russian banking services market in the context of financial globalization is undergoing a stage of accelerated formation of organizational capital based on a promising model of interaction between banking and other financial institutions, which expands the possibilities of ensuring capitalization and consolidation of the national banking sector based on the expanded participation of information capital in the modernization of banking activities aimed at creating competitive advantages national financial and credit institutions.
The strategy for the development of the Russian market of financial and credit services under the influence of financial globalization is based on the fact that one of the priorities of the state economic policy is the formation of a competitive Russian banking sector capable of developing on its own basis and being an effective tool for ensuring sustainable economic growth. As part of the strategy aimed at increasing the competitiveness of national banks, the government should influence the banking sector through the formation of a regulatory framework for the activities of credit institutions and the functioning of the financial services market.
Profitability in the real sector does not allow, taking into account inflation, to ensure the return of medium-term and long-term loans on favorable terms for commercial banks. Low return on capital in the real sector (longer investment maturity, lower return on fixed assets) will not help attract investment even in the face of declining inflation.
Moreover, a number of factors, generally favorable from the point of view of macroeconomics, have a rather contradictory influence on the development of credit institutions. Thus, a significant slowdown in inflation, a drop in the yield on government securities, and sometimes negative yield on the foreign exchange and stock markets lead to a deterioration in the financial situation of credit institutions.
It is hardly possible to assume that in such conditions free financial resources, and after them all banks will rush into the real sector of the economy. Therefore, in our opinion, there is no reason to believe that investments will appear in the near future.
First, the risks of investing in industry remain prohibitively high. This is especially true for capital-intensive investment projects. Lending to industrial enterprises is currently designed, as a rule, to compensate for a temporary shortage of working capital, is of a short-term nature and is carried out either for specific export supplies, or for finished and liquid products. The level of risk of long-term capital investments remains incompatible with the potential rate of return on these investments. High risks cannot be eliminated without improving the financial condition of enterprises. Obviously, within one year, it will not be possible to radically improve the state of finances of economic entities and to carry out a successful reform of enterprises under no circumstances.
Secondly, the fall in the profitability of financial market instruments reduces the investment opportunities of banks and makes their financial position unstable. Banks worried about the state of their current liquidity are unlikely to be inclined towards investment projects. It should also be noted that even if the economic situation is relatively favorable, the total financial resources of a significant part of Russian credit institutions are insufficient to ensure serious capital investments in industry, transport or communications.
An analysis of the credit policies of Russian banks showed that the global financial crisis has a negative impact on the credit market: there is a shortage of credit resources, interest rates have increased, and the requirements for borrowers have become more stringent. The lending activities of the North-West Bank SB RF (OJSC) are developing in line with market trends: rates have increased, the volume of new loans has decreased, requirements for borrowers and collateral have increased. In 2009, the following structure of the loan portfolio of the North-West Bank SB RF (OJSC) was formed, the main share (60%) falls on ordinary commercial loans to enterprises and organizations, the share of interbank loans is 13%, and the share of loans to individuals is 27%. During the analyzed period, the net loan debt of the North-West Bank SB RF (OJSC) decreased by 160,455 thousand rubles. The main share (61%) was short-term investments. During the year, the most demanded by the bank's clients were loans with maturity from 6 months to a year, which accounted for 30.5% of credit investments. 75% of loans are loans issued in the currency of the Russian Federation. The growth rate of interest income on loans granted was 1.08 times higher than the growth rate of total income, which was due to an increase in interest rates. The main share (85%) in the loan portfolio is made up of loans with a minimum and moderate level of credit risk, classified as “standard” and “non-standard”. However, during the analyzed period, the quality of the loan portfolio deteriorated: the share of non-standard loans increased by 2.90%, the share of doubtful loans - by 0.18%, the share of problem loans - by 0.55%, the share of bad loans - by 0.21%.
It is recommended to improve the credit process in the bank in the following areas: a) assess the creditworthiness of borrowers not only in the process of considering the borrower's loan application, but also in the course of monitoring the borrower, as well as in the process of considering the need for and the possibility of changing the terms of lending; b) it is advisable to analyze information about borrowers on the basis of various sources (credit bureaus, exchange of information with other banks). The forecast of the dynamics of the loan portfolio allows us to conclude that its volume by the end of 2010 will grow by 20%, and the forecast of the level of interest income indicates a decrease of 6.1%. The decrease in interest income with the growth of the loan portfolio is explained by the fact that at the end of 2009 banks cut back on lending and raised interest rates due to the liquidity crisis. In accordance with the forecast obtained, the situation on the credit market should normalize: lending volumes will increase, and interest rates will begin to decline.
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In September 2014, the EU countries, Canada and Australia introduced a package of sanctions, which included the three largest enterprises of the domestic fuel and energy complex - Rosneft, Transneft and Gazpromneft. The sanctions consisted in a ban on trading in the bonds of these companies with a maturity of more than 30 days and participation in organizing the issues of such securities. In addition, restrictions were adopted on the provision of foreign loans and investment services for five Russian banks - Sberbank, VTB, Gazprombank, VEB and Rosselkhozbank. In these conditions, Russian banks are forced to reorient themselves to domestic financial markets, limit the growth of lending and tighten the formation of a loan portfolio, taking into account the increased risks. At the same time, fuel and energy companies are demanding loans to refinance external loans. In these conditions, the demand for loans is funded by the Central Bank of Russia and the RF Ministry of Finance. In October 2014, their support to banks increased by 770 billion rubles. and, in general, by 3.3 trillion rubles. for 9 months of 2014. According to the economists of Alfa-Bank, at the end of 2014 the state funds 12% of the banking sector's assets: 9% falls on the Central Bank of Russia and 3% - on the deposits of the Ministry of Finance of the Russian Federation. Let us consider what are the prospects for lending to Russian companies in the context of reorientation to domestic financial markets and a simultaneous increase in the level of credit risks.
Companies of the Russian fuel and energy complex are traditionally among the priority borrowers of the largest commercial banks. This is due to the special role that the fuel and energy complex plays in the modern Russian economy. The fuel and energy complex provides more than 40% of revenues to the revenue side of the country's budget. More than half of Russian exports are related to industries that are part of the fuel and energy complex. For the implementation of their large-scale investment projects, the largest companies and, first of all, fuel and energy companies are interested in attracting long-term resources at the lowest possible rates. It is no coincidence that the largest companies have been actively raising funds in Western markets. The most popular financial solutions were the issuance of long-term bonds and the attraction of syndicated loans.
Due to the imposed restrictions on foreign borrowing, the fall of the ruble and the rise in the cost of domestic financing, the fuel and energy companies faced problems with the payment of funds on liabilities in foreign currency, since they are difficult to repay without further refinancing. In this regard, the question arose of refinancing liabilities in foreign currency in the domestic financial markets. For the timely repayment of debts, it is necessary to obtain new financing pegged to foreign currency within the country, or to obtain financing in national currency and buy foreign currency with the subsequent repayment of the current debt. The second option with an active purchase of foreign currency for Russian rubles took place, and this led to the collapse of the national currency.
In principle, debt pyramids formed by states and corporations have become global problems of our time. As already noted, they affect not only the credit and financial sphere, but also the sphere of the real economy conditioned by it, the activities of monetary authorities and non-governmental non-profit organizations, households, international economic relations, and require the development of scenario forecasts in order to develop adequate management methods.
The question of the formation of the currency structure of attracted financial sources from the standpoint of the future financial stability of fuel and energy companies rests on the behavior of oil prices. Consider the following scenarios with continued economic isolation from the West:
A. Low oil prices with a predominance of ruble debt.
B. Low oil prices with a predominance of debt pegged to foreign currencies.
B. High oil prices with a predominance of ruble debt.
D. High oil prices with a predominance of debt pegged to foreign exchange.
Under option A: fuel and energy companies will begin to sell foreign currency earnings to pay off debt in rubles, which will provoke a strengthening of the national currency. The equivalent of the ruble debt in foreign currency will start to increase. Given the low oil prices, this situation could threaten the financial stability of companies.
Option B: there will not be enough primary sources, so the fuel and energy companies will have to refinance their debt in foreign currency.
Option B: fuel and energy companies will begin to sell foreign currency earnings to pay off debts in rubles, which will lead to the strengthening of the ruble. The equivalent of the ruble debt in foreign currency will start to grow and companies will lose on currency risks.
Option D: fuel and energy companies will settle their liabilities in foreign currency using primary sources without financial losses.
Thus, the situation with the prevalence of debt pegged to foreign currency is more favorable, which means it carries fewer credit risks for the bank.
It should be noted that the attraction of financing pegged to foreign currency within the country leads to pressure on the level of international reserves. The volume of international reserves does not cover the total amount of corporate debts in foreign currency (Fig. 1).
Nbsp; Economic growth of Russia "Development of credit processes at the current stage of development of the banking system" "Development of processes of crediting at the present stage of development of a banking system". Munko M.V. Munko M.V. CONTENTS Introduction ……………………………………………………………………………………………………………………………………………………………………………………………………………………………… Federation ……………………………………………………………………. 3. Problems and prospects for the development of lending processes in the banking system of the Russian Federation ……………………………… Conclusion ……………………………………………………………… … ... List of sources used ………………………………………. 3 5 20 23 27 28
INTRODUCTION
The formation and development of a market economy in Russia is impossible without ensuring the sustainable development of its financial sector, in which the banking system plays a significant role. This is due to the fact that banks act as financial intermediaries in organizing the movement of funds and capital: firstly, they provide settlement and cash services to legal entities and individuals who are clients of banking institutions; secondly, they perform an important function of mobilizing temporarily free funds of the population and legal entities and, converting them into bank capital, carry out various credit, investment and other operations, thus satisfying the needs of the economy for additional resources.
An important role in stimulating reproduction processes in the economy is played by bank loans as the main source of financial resources for the current and investment activities of business entities. Credit is one of the most difficult economic categories, the study of the essence of which occupies an important place in the works of domestic and foreign scientists. In addition, the rapid growth in lending volumes, which is accompanied by increased risks compared to other types of banking activities and a decrease in profitability, necessitates the use of new approaches, methods and techniques for managing the bank's loan portfolio, developing an effective mechanism for the credit process and using it in practice. Therefore, an urgent task is to study the foundations of the organization of bank lending, to determine the criteria for making a decision on granting a loan and the main provisions of the organization of monitoring credit operations.
The object of this study is the process of bank lending in Russia at the present stage.
The subject of the research is the relationship that arises between the bank and the borrower in the process of carrying out credit operations.
The information base of the study was the civil and banking legislation of the Russian Federation, educational and scientific literature, materials from periodicals, statistical information from the official website of the Central Bank of the Russian Federation.
The purpose of the work is to consider the development of the credit market and credit relations in Russia at the present stage of the development of the banking system.
To achieve this goal, it is necessary to solve the following main tasks:
Determine the main provisions of the formation of the bank's credit policy;
Explore the features of the organization of bank lending;
Analyze the features of various forms of bank loans and determine the prospects for their development;
Investigate the current state of bank credit in Russia;
Identify the main problems and prospects for the development of lending processes in the banking system of Russia.
The research methods are specific methods of obtaining theoretical and empirical information, namely:
- logical and legal (analysis of legislation and literary sources);
- comparative;
- historical;
- systemic and structural;
- generalization.
THEORETICAL BASIS OF ORGANIZATION OF BANK LENDING
The role of banking institutions as the main subjects in the monetary market is determined by their ability to attract temporarily free funds and the ability to effectively use the accumulated resources to meet the financial needs of the real sector of the economy in order to ensure the continuity of individual capital turnover of enterprises. The prospects for further growth of the domestic economy largely depend on the ability of the banking system to meet the needs of business entities with the necessary financial resources.
Economic science has proved, and economic practice has confirmed that credit is a universal tool for the distribution and redistribution of national income, financial, material and labor resources, the leveling of profitability levels of enterprises based on capital overflow contributes to progressive structural shifts in the national economy. Bank lending and receiving interest on a loan is an important source of profit for the bank, and also acts as one of the main sources of financing for enterprises in a market economy.
Modern economic domestic and foreign literature gives various interpretations of such categories as "credit", "bank credit", "loan", "loan" and "crediting". And it is precisely on a clear definition of these concepts that the development of cooperation between the lending bank and the borrower depends, the efficiency of banking lending operations, ensuring the reliability and profitability of a banking institution, as well as strengthening the banking system as a whole.
In particular, the banking encyclopedia defines the concept of "credit" as an economic category, which is an expression of relations between business entities on the provision and receipt of loans in cash or commodity form on terms of repayment, urgency and payment. It is also noted here that credit is a movement of value in the interests of fulfilling certain needs.
It also defines such concepts as "loan" and "loan". In particular, a loan is interpreted as the receipt by one party (the recipient of the loan, the borrower) for temporary use or operational management from the other party (the lender) of money or material assets with the obligation to return the received money or values on the terms provided for by the parties' agreement.
A loan is understood as the provision by one party (lender) to the other party (borrower) of money or material assets for temporary use or operational management. Loans are provided by banks, other financial and credit institutions to legal entities and individuals on the terms of payment, urgency and repayment on the basis of loan agreements.
Lending is a credit process that includes a set of mechanisms for implementing cooperation between the lender and the borrower.
In modern conditions, the most common is a bank loan, although in countries with developed market economies, loans that are provided by non-bank credit institutions have recently played an important role.
The term "bank credit" in science and practice is used quite often, while simultaneously having different definitions.
Thus, Macmillan's dictionary of modern economics defines a bank loan as lending by the banking system by any of the possible means: using a bank advance, discounting promissory notes, or buying securities.
Great Encyclopedic Dictionary of A.N. Azriliyana defines a bank loan as the main form of credit, in which funds are provided by banks for temporary use.
Explanatory dictionary T.N. Mezentseva interprets the concept of a bank loan as a loan that is provided by banks, special credit and financial institutions to operating enterprises and other borrowers in the form of cash loans. In this interpretation, a bank loan can be provided not only by banking institutions, but also by other special financial and credit institutions.
Thus, a bank loan is understood as the amount of temporarily free funds of the bank, which it provides or undertakes to provide the borrower for use on the terms of proper security, return within a certain period of time, payment and intended use.
As an economic category, a loan is a set of relevant economic relations between the lender and the borrower about the return movement of value. Lending is a specific form of monetary relations and has certain features associated with servicing reproductive processes in the economy. The possibility of the emergence of credit relations is due, on the one hand, to the existence of temporarily free money capital, the owners of which are ready to provide them for a certain period at interest, and on the other hand, to borrowers who are ready to temporarily use them in their production activities.
Credit relationships between the subjects of lending - the bank and the borrower - are built on the basis of loan agreements concluded in writing. The object of a bank loan is money capital, expressed in both national and foreign currencies. The banking system, by providing loans, organizes and services the movement of capital, ensures its attraction and redistribution in those spheres of production and circulation where there is a shortage of funds.
The process of the formation of a market economy in Russia objectively determines the need to increase the role of bank credit, which is one of the most important factors ensuring the continuity of expanded reproduction. This role is determined, first of all, by the wide scope of banks' lending operations.
Bank credit penetrates into various sectors of the economic life of society. Banking institutions provide loans to finance the current and investment activities of enterprises of various forms of ownership, which is associated with meeting the needs for working capital, increasing, modernizing and reconstructing fixed assets; satisfaction of consumer needs of the population; financing government spending using the stock market mechanism.
Banking institutions provide loans for the fulfillment of the following conditions:
1) targeted financing of a specific project or business operation is necessary, the technical and economic examination of which indicates their sufficient profitability, taking into account the industry risk, market development trends;
2) a comprehensive comprehensive analysis of the financial and economic activities of the borrower carried out by the bank testifies to its creditworthiness, financial stability, profitability, liquidity;
3) all the principles of lending are observed;
4) the amount of the loan provided is within the limits of the available mobilized and purchased from other banks credit resources;
5) the bank adheres to the economic standards of the Central Bank of the Russian Federation for the regulation of lending activities;
6) in most cases, the decision to grant loans to borrowers is taken collectively (by the credit committee of the bank or the credit commission of the bank branch) by a majority vote and is drawn up in a protocol.
Thus, in the economic literature, a bank loan is interpreted as a bank's capital in cash, which is provided for temporary use, subject to the principles of lending.
Bank credit plays an important role in the country's economy, since by accumulating temporarily free funds from legal entities and the population, the bank realizes their redistribution to those sectors of the national economy where there is a deficit, and this in turn contributes to the development of both business entities and the economy. the country as a whole.
Among the factors that determine the need for business entities in additional financing of their activities, one can single out:
The state of the technical support of production;
Seasonality of production;
The gap between the duration of the production process and the period for the sale of products;
Fluctuations in supply and demand for products, etc.
Consequently, it becomes possible to fill the temporary shortage of funds of some economic entities at the expense of a temporary surplus of funds from others.
The subjects of credit relations are, on the one hand, lenders who provide funds for temporary use, and on the other, borrowers who receive these funds. The object of a credit transaction is monetary and material values for which a credit agreement is concluded.
The main stimulating motives of credit relations on the part of the lender can be attributed to the receipt of income in the form of interest, and on the part of the borrower - to cover a temporary lack of own resources and to receive income as a result of using the loan value.
The essence of credit as an economic category is manifested in its functions, the disclosure of which makes it possible to establish a connection between this category and the system of economic relations.
To date, there is no consensus in the economic literature on the number and essence of credit functions, since the content of individual functions depends on methodological approaches to the analysis of credit relations.
In the economic literature, less disagreement is observed on the definition of such functions of credit:
Redistributive;
Substitution of cash by means of payment;
Controlling.
The redistributive function consists in the fact that material and monetary resources that have already been distributed and transferred into the ownership of economic entities are redistributed through credit and sent for temporary use to other entities without changing their primary property rights.
The function of replacing cash with payment means is that a loan as an instrument of effective regulation of money circulation makes it possible to flexibly expand the mass of means of payment in circulation by increasing the mass of commercial bills and bank deposits, due to the acceleration of the monetary multiplier and an increase in refinancing. In the event of a reduction in the needs of money circulation, the mass of means of payment can be reduced.
The controlling function is that in the process of lending, mutual control is carried out (both by the lender and the borrower) over the observance of the principles of lending.
These functions are closely related to each other and in their totality determine the economic role of credit relations.
The loan can be provided both in commodity and in cash on the principles of repayment, urgency and payment.
Credit in commodity form (commercial credit) is provided by the seller to the buyer in the form of a deferred payment for goods sold or services rendered. A characteristic feature of a commercial loan is that it is provided by enterprises at their own discretion and is not regulated by banking legislation. Commercial loan obligations can be formalized by a simple bill or a bill of exchange.
A cash loan is a loan capital provided by a lender to a borrower on a credit basis.
It should be noted that bank loans are provided exclusively in cash. According to the commercial form of the loan, the bank can serve or carry out operations using the instrument of a commercial loan - a bill of exchange, without being a direct participant in a commercial loan.
Thus, a bank loan is any obligation of a bank to provide the borrower with a certain amount of funds in cash or bank metals, which is provided in exchange for the obligation of the borrower to repay the principal amount and pay interest, commission and other fees for the use of these funds. A bank loan is provided to the borrower on the principles of security, repayment, urgency, payment and intended use.
The principle of loan security means that the bank has the right to protect its interests, prevent losses from non-repayment of debt due to the borrower's insolvency and the ability to satisfy its claims by levying foreclosure on the pledged property, collecting debt from guarantors, sureties, etc.
The principles of repayment and urgency mean that the loan must be repaid by the borrower of the bank within the period specified in the loan agreement. The ability of the bank to provide new loans depends on the observance of these principles, since the returned loans are one of the sources of credit resources. Violation of the principles of repayment and urgency leads to the emergence of overdue debt on loans and deterioration of the quality of the bank's loan portfolio.
The principle of payment is that in the process of lending, the bank requires borrowers not only to return the loan, but also to pay interest for using it. In market conditions, interest is an objective payment for the use of funds received on credit. At the expense of interest, banks cover their costs of attracting resources, drawing up loan agreements, maintaining a loan and making a profit.
The targeted nature of lending provides for the use of the received loan only for specific purposes specified in the loan agreement. The intended use of the loan is easier to trace if one of the conditions for its provision is the opening of a current account with the bank by the borrower. Compliance with this principle ensures the timely repayment of the loan, since only the realization of the purpose for which the loan was received can provide the necessary amount of funds for its repayment.
The division of bank loans depending on the classification criteria is shown in Figure 1.
Rice. 1. Classification of bank loans.
According to the term of provision, the following types of loans are distinguished:
Short-term loans - up to one year;
Medium-term loans - from one to three years;
Long-term loans - over three years.
Short-term loans are provided in the event of temporary financial difficulties arising from the costs of production and circulation, not secured by the receipt of funds in the relevant period.
Medium-term loans are provided to pay for equipment, operating expenses, and financing of capital investments.
Long-term loans are provided for the formation of fixed assets, financing of capital investments, reconstruction, modernization and expansion of existing fixed assets, new construction, privatization, etc.
By the number of creditors, loans are divided:
For loans provided by one bank;
Consortium loans, that is, loans that are provided to one borrower by two or more banks, united in a consortium with the pooling of credit resources.
On the object of crediting, loans can be sent:
Current activities;
Investment activity.
Loans for current activities are loans directed to the sphere of circulation, which are provided to borrowers to meet the temporary need for funds to acquire current assets in the event of a gap between the time of receipt of funds and the implementation of expenses.
Among the loans provided for current activities, one can single out:
a) loans for internal trade operations - provided to finance the movement of goods between the stages of purchase (manufacture) and their subsequent sale, the costs of reloading goods in transit and storage in warehouses (intermediary operations);
b) loans for export-import operations - provided for the implementation of operations of export (import) of goods and services in accordance with the current legislation.
Loans for investment activities are loans directed to the sphere of production, provided to borrowers to meet the temporary need for funds when they make investment investments.
The following types of loans are distinguished by sectors of the economy: to industry; in agriculture; trade; construction; to other industries.
By collateral, loans are subdivided:
- secured by a pledge;
- secured by a guarantee or surety;
- unsecured (blank).
Loans secured by pledge are loans for which property (movable and immovable), property rights, securities and other property, which can be pledged in accordance with the law, are pledged by the borrower or a third party as collateral.
Loans secured by a guarantee or surety are expressed in the legal form of an obligation on the part of the guarantor (surety) to repay the borrower's debt to the bank in the event that the borrower cannot do this for some objective reason. Financially reliable enterprises can be guarantors; banks with a certain credit rating; domestic and foreign companies; in the role of guarantors - individuals.
Unsecured (blank) loans are loans without any collateral provided by the bank within its equity capital to reliable borrowers who have stable sources of loan repayment and a positive credit history with the possible application of an increased interest rate. A blank loan can be provided for short-term lending against profitable and guaranteed agreements between the borrower and counterparties. The Bank has the right to issue blank loans only in compliance with the established obligatory prudential standards.
According to the methods of granting, loans are divided into:
- loans provided on a one-off basis;
- loans provided within the framework of an open credit line;
- loans using the overdraft method.
Loans are provided on a one-time basis by a one-time write-off of funds from the loan account for the purposes stipulated by the loan agreement.
Loans are provided within the open credit line by multiple debiting of funds from the loan account based on the borrower's applications within the amount and for the purposes established by the loan agreement. A credit line is usually opened within a certain contract (group of contracts) that is used for a long time or within a fixed term of the bank's credit relationship with the borrower.
The following types of credit lines are opened in the bank:
- renewable;
- not renewable;
- provided by tranches.
When using a revolving credit line, the bank's liabilities are reduced when a loan is granted and renewed when the borrower pays off the debt.
When using a non-revolving credit line, the bank's liabilities are reduced when a loan is granted and are not recovered.
When using the form of a loan, which is provided in tranches, the bank's liabilities are reduced when the tranche is provided and are not restored.
Loans provided by the overdraft method are one of the forms of short-term loans, when granted, the bank is entitled to pay payment documents in excess of the balance on the borrower's current account within the limit specified in the agreement.
By repayment methods, there are:
- loans repaid in a lump sum on a specific date, which is indicated in the loan agreement as the loan repayment period;
- loans repaid by installments. In this case, the loan amount is repaid in certain installments throughout the entire term of the loan. The repayment period is specified in the loan agreement and can be periodic (monthly, quarterly, once every six months, once a year, after the end of the period specified in the agreement, etc.) or correspond to the schedule established by the loan agreement.
According to the credit risk category, loans are divided into standard and non-standard loans. With standard loans, the credit risk for such operations is insignificant and amounts to 1% of the net credit risk, and for credit operations in foreign currency with borrowers who do not have sources of foreign exchange earnings - 2% of the net credit risk.
As part of non-standard loans, loans are separately distinguished "under control", "sub-standard", "doubtful" and "bad":
a) loans "under control" - the credit risk for such operations is insignificant, but may increase due to the occurrence of an unfavorable situation for the borrower and amounts to 5% of the net credit risk, and for credit operations in foreign currency with borrowers who do not have sources of foreign exchange earnings - 7% net credit risk;
b) "subprime" loans - the credit risk for such operations is significant, it can further increase and amount to 20% of the net credit risk, and for credit operations in foreign currency with borrowers who do not have sources of foreign exchange earnings - 25% of the net credit risk ; there is also the likelihood of untimely repayment of the debt in full and within the time frame stipulated by the loan agreement;
c) "doubtful" loans are operations for which the fulfillment of obligations on the part of the borrower in full (taking into account the financial condition of the borrower and the level of collateral) is under threat, the probability of full repayment of the loan debt is low and amounts to 50% of the net credit risk.
The key prerequisite of the bank's credit management system is a well-thought-out credit policy, which determines the goals and priorities of the bank's credit activities, the means and methods of their implementation. The credit policy covers the most important elements and principles of organizing credit work in the bank, which are fixed in writing and approved by the authorized governing body of the bank.
In modern conditions, in order to ensure the organization of effective lending activities, banks develop their own internal lending policy and introduce a mechanism for its implementation. The bank's credit policy is the main document that banks are guided by when forming a loan portfolio. This document is confidential, therefore, only the bank employees carrying out lending can be familiarized with it. The actual structure of the loan portfolio must comply with the provisions of the bank's credit policy, otherwise its effective implementation will not be ensured.
Credit policy consists of the strategy and tactics of the bank for organizing the lending process. That is, the credit policy determines the main directions of the credit process, priorities, principles and goals of a certain bank in the credit market - the strategy of the bank's lending activities, and provides for the use of specific financial and other instruments used in the process of implementing credit agreements - the bank's tactics for organizing the lending process.
Thus, the credit policy creates the basis for the organization of the credit process and determines:
- priority areas of lending and the specifics of the bank's activities in the credit market;
- the goals according to which the loan portfolio is formed (types, terms, volume and risk of loans provided);
- a description of the standards by which the quality of loans is determined;
- the level of acceptable risk;
- criteria for favorable and unfavorable loans;
- the possibilities of the bank and its clients;
- rules for the formation of reserves to compensate for possible losses on credit operations of banks;
- the procedure for using the reserve for non-standard loan debt;
- basic rules for accepting, evaluating and realizing loan collateral;
- powers and duties of employees of the credit department, etc.
The bank's credit policy is formed taking into account factors that are determined by the size of its capital and assets, the composition of the client base, specialization, location, branching of the branch network, the state of the economic situation in the money market, etc.
The main principle of credit policy is the principle of priority of minimizing the level of risk over profitability, according to which, regardless of the amount of potential income, a loan is not issued if its issuance is accompanied by an unacceptable level of risk.
Stages of developing the bank's credit policy:
1) the formation of lending goals;
2) development of lending standards;
3) development of basic documents of credit policy.
The goals and standards of lending are determined in accordance with the strategic development plan of the bank and can be formulated both in the long-term development plan and in the bank's budget for the current year.
The main goal of the credit policy is to form a balanced and high-quality approach to risk management at the level of the bank's loan portfolio.
The main goals of credit policy include:
- ensuring the maximum level of return on the loan portfolio and share capital of the bank at an acceptable level of risk;
- ensuring a balanced and rational use of credit resources;
- achieving an optimal balance between the growth of the loan portfolio and the rate of improvement of its quality;
- fulfillment of all requirements and regulatory indicators established by the Central Bank of the Russian Federation for the volume of loan investments, the maximum amounts of loans provided to one borrower (including insiders, related and associated persons);
- expanding the client base by improving the quality of customer loan services, etc.
Lending standards contain samples of documents with which workers of the credit department work, a list of actions of bank employees responsible for the implementation of the bank lending process, and their powers. The main task of lending standards is to determine the practical actions of employees of the credit department for the implementation of the bank's credit policy.
The following main points should be reflected in lending standards:
- a list of documents submitted to the bank by the borrower to obtain a loan;
- the procedure for conducting a preliminary interview (interview) with the borrower;
- requirements for securing loans, guarantees and sureties;
- rules for organizing the credit process;
- the procedure for assessing the creditworthiness of the borrower;
- requirements for registration of credit documentation;
- samples of documents (loan agreement, pledge agreement, surety, etc.).
Credit policy documents are documents for the practical implementation of the general provisions of the bank's credit policy.
The bank's credit policy defines the range of key goals and objectives of banking, defines specific techniques, methods and methods for its implementation in order to maximize the profitability of credit operations and achieve an acceptable level of banking risks in the field of lending. When conducting credit policy, proceed from the need to take into account national interests and ensure a combination of interests of the bank, its shareholders, depositors and borrowers.
Credit relations are regulated on the basis of credit agreements concluded between the lender and the borrower only in writing and determining mutual obligations, as well as the responsibility of the parties.
The bank's decision to issue a loan to a specific borrower should be contained in the plane: desired (planned) income / acceptable level of risk. If the level of risk or the level of profitability of a credit operation does not meet the established requirements, the bank must refuse to issue a loan to the borrower.
One of the main elements of the methodological basis of lending activities, the subjects of which are banking institutions, are the principles of lending. The principles of bank lending determine the most important conditions for the functioning of a bank loan and are designed to stimulate the development of borrowing enterprises, help strengthen monetary circulation in the country and ensure the continuous circulation of borrowed capital, while achieving the effectiveness of the implementation of the redistribution function.
The principles of bank lending are the main provisions, rules and conditions that banks must follow in the process of lending. These regulations and rules are determined by the nature, role, functions of credit and those social conditions in which they are manifested. Implementation of the principles of lending is the fundamental basis for the implementation of the lending process.
The main principles of bank lending are: repayment, urgency, purposefulness, security, payment, differentiation, contractual nature.
The principle of loan repayment is that the loan is the bank's capital, which is provided for temporary use and is subject to mandatory return by the borrower.
The principle of the urgency of the loan reflects the need to repay the loan received within a certain period specified in the loan agreement.
The principle of purposefulness, or targeted use of the loan, is that the loan should be provided only for certain purposes, namely, to meet the temporary need of the borrower for additional funds. In practice, this principle is implemented by providing a loan for specific purposes (objects) and is reflected in the corresponding section of the loan agreement, which establishes a specific purpose for using the loan and makes it possible to exercise bank control over compliance with the conditions by the borrower.
The principle of loan security expresses the need to ensure the property interests of the lender if the borrower violates the obligations assumed. Debt obligations, which ensure the repayment of the loan, are drawn up together with the loan agreement and is an annex to it. The principle of loan security is the correspondence between the value of the property that is the collateral for the loan and the debt on the loan. Its purpose is to protect the interests of the bank and prevent losses from non-repayment of debt due to the insolvency of the borrower.
The principle of payment expresses the need not only for a direct return by the borrower of the credit resources received from the bank, but also for payment of the right to use them. The implementation of this principle is carried out through the mechanism of credit interest. The payment of the loan has a stimulating effect on the commercial settlement of enterprises, forcing them to increase their own funds and effectively use borrowed funds. At the same time, the principle of payment provides the bank with coverage of its expenses and is one of the main components of profit.
Differentiation of the loan is a principle that means a balanced approach on the part of the bank to various categories of potential borrowers. The loan is provided to business entities on the basis of an assessment of the creditworthiness indicators, which make it possible to analyze the financial condition of the enterprise and have confidence in the ability and willingness of the borrower to repay the loan provided within the period specified in the agreement.
The contractual nature of bank lending is manifested in the fact that a bank loan is provided for temporary use to business entities on certain conditions and under concluded loan agreements.
ANALYSIS OF THE CURRENT STATE OF BANK LOAN IN THE RUSSIAN FEDERATION
An analysis of the current state and problems of bank credit in the Russian Federation is necessary to identify the prospects and directions for the further development of the entire credit system of Russia, since the level of economic relations in the country, their financial performance and, as a consequence, the level of economic development of the whole country.
A modern and efficiently operating credit system of the Russian Federation is an indispensable condition for the stability and economic growth of the country. Since the credit and banking systems are interdependent, their development occurs in aggregate, and without improving the banking system, effective lending by financial organizations to various sectors of the economy is impossible.
With regret, it should be admitted that in recent years there has been a steady downward trend in the number of banks in the Russian Federation. This process began in connection with the global economic crisis in 2008 and continues to this day. The Russian banking sector is undergoing significant changes, the number of operating banks is rapidly decreasing. So, in the period from 2008 to 2019, the number of banks decreased from 1136 to 484 (as of January 1, 2019), which is more than 42%.
In addition, since 2014, there has been a gradual decrease in the volume of bank loans issued to individuals, which is explained by many factors. It should be noted that, in addition to the decrease in the activity of creditors, the inflation, growing since the beginning of 2015, had a significant impact. The increase in the discount rate of the Central Bank of the Russian Federation caused large-scale changes in the interest rates of commercial banks. Interest rates on bank loans to the population showed record values of 25-35% in the fourth quarter of 2014 - the first quarter of 2015.
Subsequently, the banks managed to adapt to the new realities by increasing the rate of granting loans to individuals. The growth in disbursements in the secured lending segment was particularly noticeable, where car loans and mortgages were supported by government programs to subsidize interest rates.
In connection with the existing problems in the credit market and in the banking sector as a whole, new trends in the development of lending by banks to individuals and legal entities have emerged. Currently, in the field of bank loans, the most notable trends are:
Changes in the structure of loan payment schemes;
Tightening of the conditions for issuing a loan and requirements for potential borrowers;
Strengthening measures to protect banks from non-repayment and non-payment of loans issued;
Development of Internet banking.
In 2014-2015, the situation changed for the worse: the economic crisis, Western sanctions, inflation, large-scale changes in the interest rates of commercial banks (rates on bank loans to the population in this period showed record values of 25-35%) led to a decrease in the volume of loans issued to individuals. persons. All these changes had an impact not only on banks, but also on the population, many lost their jobs and became unable to take out a loan, others postponed it for a time more favorable from the point of view of the economy.
To stay on the market, banks are forced to take measures and meet all the requirements of the Central Bank of Russia. The measures taken by them, in particular, affected the terms of lending to individuals and legal entities. The amount of borrowed funds was limited, the limits on clients' credit cards were reduced, the requirements for the salary of potential clients, as well as the volume of documents required to obtain a bank loan, were raised; some banks even provide loans only to government officials whose solvency does not cause concern.
However, the dynamics of 2017-2018 suggests that the credit system is gradually recovering from the crisis, gradually increasing the volume of loans issued.
In 2017, retail lending showed positive dynamics for the first time after a prolonged lull. Unlike previous years, when growth was observed only in the mortgage segment (largely due to the state support program), now the recovery is noticeable in other segments of the retail market.
The total volume of retail loans at the end of 2017 increased by almost 11% to 12.5 trillion. rub. The volume of mortgage loans issued during this period increased by 15% to 5.7 trillion. rubles, non-targeted loans - by 5.4% to 4.5 trillion. rubles, credit cards - by 8.5% to 1.3 trillion. rubles, car loans - by 14.3% to 780.9 billion rubles.
The volume of consumer loans in 2018 exceeded the pre-crisis period, the growth is achieved due to an increase in the volume of cash loans. At the same time, a noticeable part of the loans is the refinancing of previously taken loans.
A significant share of loans issued is the refinancing of previously taken loans. However, this situation is quite dangerous since citizens carry out refinancing due to the impossibility of servicing current obligations, which can provoke the formation of personal and family credit pyramids and lead to default with a much larger amount of debt.
If in the case of mortgages, refinancing is the consumer's struggle for a lower interest rate, then in the segment of consumer loans, these are loans to service existing debts. That is, this is an attempt to make ends meet in anticipation of an improvement in the state of personal finances.
Against the background of the absence of a noticeable increase in household income and an increase in VAT, and hence prices for consumer goods and services, the growth of such on-lending carries very serious risks: a delay in default in this way is a default with a much larger amount.
At the same time, consumer activity of the population has been growing over the past two years, which is facilitated by the downward trend in interest rates, which makes loans even more affordable.
At the same time, the debt burden of the population grew in 2017-2018 and continues to grow at a faster pace than its real disposable income.
ANNOTATION
The article provides an overview of the main indicators of the corporate lending market, in particular the dynamics of overdue debt, as well as the measures used by banks to reduce it.
Keywords: lending, legal entities, corporate clients, commercial banks, arrears.
Introduction. The development of the corporate lending market plays an important role in maintaining the stability of the country's economy. The provision of borrowed funds to legal entities contributes to the start, development and maintenance of their activities as entrepreneurs, and, accordingly, to the creation of new jobs, reduce unemployment, increase the volume of products (goods), and promote export relations with other countries.
Purpose of the study. Conduct a study of the indicators of the market for bank lending to corporate clients, in particular the volume of overdue debt, consider measures aimed at reducing debt.
Compared to 2018, this year, the dynamics of corporate lending is generally restrained. There is a slowdown in lending to the corporate segment, for 9 months of 2019. the volume of issue increased by 3.6%, in 2018. this figure was 5.5% (Figure 1). In August 2019, lending accelerated by 0.6%, but in September the growth slowed down to 0.1%. At the end of the third quarter, the average monthly growth in corporate lending was comparable to the weak dynamics in the second quarter of 2019.
Figure 1. Dynamics of the volume of loans issued to non-financial organizations, growth per month, 01.01.2018-01.10.2019,%
The weighted average interest rate on ruble-denominated corporate loans with maturity over 1 year in the banking sector in August 2019 decreased compared to May 2019 from 10.0% to 9.1% per annum and reached the level of August 2018 (Figure 2).
Figure 2. Weighted average interest rates on loans in rubles for a term exceeding 1 year, 01.01.2016-01.08.2019,%
The study of the dynamics of overdue debt showed that in the total volume of the loan portfolio, the share of loans of the 4th and 5th quality categories decreased from 12.2% to 12.1% in January-August 2019.The trend towards improvement in the quality of the corporate portfolio continues.
The coverage by provisions for potential losses on loans to corporate clients of the 4 and 5 quality categories improved - in January-August 2019 this indicator increased from 81.9% to 85.1%.
The increase in the debt of non-financial organizations and individuals in a broad definition in 2018 amounted to 11.6%, which is slightly lower than the growth in economic activity in nominal terms. Over the same period, nominal GDP increased by 12.5%. In this regard, the "Debt / GDP" indicator for 2018 decreased by 1.3 percentage points to 74.5%.
The debt on ruble loans to non-financial organizations increased by 7.1%. in the period from October 1, 2018 to April 1, 2019 Due to the substitution of loans in foreign currency for loans in rubles, on loans to coal mining companies, across a wide range of agricultural and real estate companies , there was a significant increase in outstanding loans to non-residents. At the same time, a decrease in the growth rate of outstanding loans continues for loans from borrowers to the construction industry, for the period under review, -13.4% (-182 billion rubles), mainly due to the amortization of existing loans (Figure 3).
The dynamics of overdue debt was also influenced by the assignment to it from 2019 of overdue receivables and overdue acquired rights of claim. By and large, these changes are purely technical in nature, for example, in the period from January to September 2019. the volume of overdue debt on loans to non-financial organizations increased by 31.1%, and on loans to individuals - by 5.4% (on loans to individuals in September there was a decrease in the volume of overdue debt by 2.0%). As of September 1, 2019, the share of overdue debt in the corporate portfolio is higher than at the beginning of the year (8.0 versus 6.3%).
Figure 3. Dynamics of the volume of outstanding loans by industry since 01.10.2018. to 01.04.2019, billion rubles,%
There were no significant changes in the quality of the corporate loan portfolio. The dynamics of the quality of the loan portfolio is still determined based on the analysis of the financial condition of individual large borrowers and the quality of work of banks with problem debts, including the sale of loans.
At the micro level, credit risk management is carried out through the application of diversification of the bank's loan portfolio, customer analysis, loan insurance, attraction of sufficient and liquid collateral, etc.
Diversification of the loan portfolio is a way to minimize credit risk by dividing loans into different categories depending on the type of borrower, term of provision, type of collateral, used credit instruments, degree of risk, region, type of borrower's activity.
Limiting represents the establishment of a system of limits for each borrower, a group of borrowers, individual industries or sectors of the economy, specific types of financial products and for the loan portfolio as a whole.
Credit insurance is also used to reduce risks. Credit insurance is less profitable for borrowers, since it implies the implementation of additional costs (premiums of the insurance company). One of the most reliable way to ensure the repayment of a loan is the use of collateral, surety, bank guarantees, insurance, assignment of claims.
Timely repayment of loan debt ensures the stability of the functioning of both an individual bank and the banking system as a whole.
To reduce the level of credit risk, credit institutions also assess the borrower's creditworthiness based on its financial position, prospects for further development, duration of business, etc. Each of the characteristics has its own system of indicators, on the basis of which the assessment will take place. The creditworthiness of the client allows you to determine the degree of risk associated with the issuance of a loan to a specific borrower. Banks need to strike a reasonable balance between profitability and risk.
In the event of overdue mortgages, banks form reserves for possible loan losses. Provisions are formed in the liabilities of the bank at the expense of its own capital, in order to compensate fully or partially impaired loans in the assets of the bank's balance sheet. Since fully impaired loans must be written off by the bank against the created reserves in full, banks are reluctant to create reserves. Reserves reduce the size of the bank's own funds, if overdue loans occupy a significant proportion, the bank's position worsens. In this regard, banks are developing methods of dealing with arrears.
Independent work on debt collection is the most popular method used in practice, but it requires significant intangible investments in the organization of the procedure and material costs. Despite this, the method is considered the most effective. In practice, the bank needs to create a system for dealing with overdue debts, finance the process automation system, hire and maintain employees responsible for the implementation of the program. It is also necessary to ensure legal costs and expenses for the collection and sale of property.
Joint work on debt collection with collection agencies provides for joint work of the bank and collection agencies. Implementation of joint work on debt collection with collection agencies includes two options for interaction: outsourcing and cession.
Outsourcing refers to the transfer of overdue loan debt to a collection agency for the purpose of managing it.
The assignment or assignment of claims for obligations is the transfer of the creditor's claims to a collection agency.
According to the current legislation, the lender has the right to assign rights of claim for debt obligations, but provided there is no written ban from the borrower. The effectiveness of this method depends entirely on the quality of the services provided by the collection agency. The provision of services is carried out in accordance with the concluded agreement, on the basis of which the agency carries out work on debt collection on behalf of the bank. For the services rendered, the collection agency receives a commission. Its size depends on the list of services provided, for example, on the provision of judicial, post-judicial or out-of-court debt collection.
Minimization of credit risk is carried out thanks to the organized work of the bank's employees, who collect the most complete and reliable information about the borrower, assess the rationality and professionalism of the analysis of the financial and economic activities of the borrower, select the most effective form of ensuring repayment, monitor the provided loan collateral, etc.
To maximize profits, a credit institution needs to timely identify and assess risks, as well as take effective measures to minimize them. It is necessary to pursue a policy of diversification of risks and prevent their concentration among a group of borrowers of the same type, since this can cause serious consequences in the event of non-repayment of a loan, as well as to improve the credit policy and the system of control over the activities of the credit institution.
Bibliography:
- Annual report of the Bank of Russia for 2018 [Electronic resource]. URL: https://www.cbr.ru/publ/god/#a_48123 (date of treatment 10/23/2019)
- Lending to small and medium-sized businesses in Russia at the end of 2018: expansion of large banks [Electronic resource]. URL: https://www.raexpert.ru/researches/banks/msb_2018 (date of treatment 10/23/2019)
- Review of the banking sector of the Russian Federation (Internet version) October 2019 [Electronic resource]. URL: https://www.cbr.ru/Collection/Collection/File/23691/obs_204.pdf (date of treatment 10/23/2019)
- Financial Stability Review Q4 2018 - Q1 2019 [Electronic resource]. URL: https://www.cbr.ru/Collection/Collection/File/19790/OFS_19-01.pdf (date of treatment 10/23/2019)
- The volume of loans issued to legal entities and individual entrepreneurs [Electronic resource]. URL: http://www.cbr.ru/statistics/UDStat.aspx?TblID=302-01&pid=sors&sid=ITM_27910 (date of treatment 10/23/2019)
- Overdue debt on loans granted to legal entities [Electronic resource]. URL: http://cbr.ru/statistics/UDStat.aspx?TblID=302-09&pid=sors&sid=ITM_45484 (date of treatment 10/23/2019)
- Weighted average interest rates on credit and deposit operations in rubles excluding PJSC Sberbank [Electronic resource]. URL: https://www.cbr.ru/statistics/pdko/int_rat/ (date of treatment 10/23/2019)
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