Formation of Strategy of Credit Policy of Commercial Bank

Abstract

This paper describes the criteria for assessing the quantitative and qualitative parameters of loans, which are in close functional relationship, the choice of which depends on the direction of the credit policy of the commercial bank. The paper also presents the criteria of bank loans, which are in close functional relationship, the choice of which depends on the approaches to the classification of commercial bank loans. As a result of the conducted research, the concept of bank credit classification taking into account the Russian specifics was developed. Development of a quality strategy and its consistent implementation is the central problem of formation and sustainable development of each commercial bank. The formation of the commercial bank's credit policy strategy is of paramount importance both for the implementation and results of the bank's credit activities, and for the functioning of the bank as a whole. The formation of the strategy should be well-founded step-by-step. The strategy of the credit policy is based primarily on the bank's capabilities caused by the scale of its activities and specialization, as well as the specialization of its major shareholders. The study showed that the definition of the credit policy strategy is due to the scale of the bank's activity, its specialization and is an integral part of the entire process of managing the credit portfolio of a commercial bank.