Evaluation of the quality of the payments for the loan

Date: 2015-10-07; view: 462.

Conclusion: On the basis of the information above, the financial position of the borrower is evaluated as good.

According to p.3.8 of instructions № 254 - Bank of Russia, the quality of the payments for the loan are considered as good.

Thus, based on the above analysis, we can conclude that the issuance of this loan for the borrower is available.

Let us draw conclusions regarding lending to small and medium-sized businesses in ROSBANK:

1. Bank has a significant niche in the lending market to SMEs and aims to further develop its relations with small and medium-sized businesses.

2. All in all, ROSBANK credit line of products for SMEs meet modern conditions, but it has one major drawback. The organization should operations for at least 12 months to be available to get loan. It makes ROSBANK loans inaccessible to those who need capital to start a business.

3. According to the Central Bank instruction № 254-P "On the formation of the bank of reserves for possible loan losses by loan and similar debts" ROSBANK gathers homogeneous loans into one portfolio for the aim of making reserves. The loan described above was included to this portfolio. This is done in order to save time and effort of employees of the bank, as well as to reduce the cost of credit products for both the Bank and borrowers.

4. Trying to simplify the procedure the Bank often gives loans to individual entrepreneurs, registering them as loans to individuals. The lending program "Professional +" implies this point.

5. For the analysis of the borrower's financial situation ROSBANK specialists use management reporting data instead of the official financial statements, that is the right approach in today's economic realities of our country.

6. The Bank uses quite an adequate technique of assessment of borrowers, which includes key financial ratios. That characterizes it as a credit institution that meets the current conditions of Russian Federation.

As ROSBANK is included in the list of systemically important banks of Russian Federation, it has to meet requirements of Basel III. If we look at current position and operations of ROSBANK, we understand that it manages with this objective successfully.