Organization of lending to legal entities to a commercial bank. Lending mechanism in commercial banks. Profitability coefficients

INTRODUCTION CHAPTER

1 THEORETICAL BASIS OF THE LENDING PROCESS

1.1 The essence of lending

1.2 Organization of lending to legal entities in a commercial bank

1.3 The current state of lending to legal entities in Russia

1.4 Legal and regulatory framework for lending in Russia

CHAPTER 2 ORGANIZATION OF LENDING TO LEGAL ENTITIES IN

PENZA BRANCH OF OJSC AKB "ROSBANK"

2.1 General characteristics of the research object

2.2 Basic conditions and parameters of lending to legal entities in

PF OJSC AKB "ROSBANK"

2.3 The process of lending to legal entities in PF OJSC AKB

"ROSBANK" (for example, LLC "Agro-guarantor")

CHAPTER 3 LENDING OPTIMIZATION PROPOSALS

LEGAL ENTITIES IN THE COMMERCIAL BANK

CONCLUSION

LIST OF REFERENCES

ANNEXES

INTRODUCTION

The term "commercial bank" originated in the early stages of the development of banking, when banks served mainly trade, commodity exchange transactions and payments. The main clientele was merchants. Banks credited transportation, storage and other operations related to the exchange of goods. With the development of industrial production, operations arose for short-term lending of the production cycle: loans to replenish working capital, create stocks of raw materials and finished products, pay salaries, etc. The terms of loans were gradually increased, part of the banking resources began to be used for investments in fixed assets and securities. Recently, there have been significant changes in the formation of the banking system in Russia. Leading banks have been identified, the main areas of banking specialization have been formed, and the division of the client base between financial institutions has been completed.

Russia's transition to a market economy, increasing the efficiency of its functioning, creating the necessary infrastructure cannot be ensured without the use and further development of credit relations.

Credit stimulates the development of productive forces, accelerates

the formation of sources of capital for expanding reproduction based on the achievements of scientific and technological progress.

Without credit support, it is impossible to ensure the rapid and civilized formation of farms, enterprises, the introduction of other types of entrepreneurial activity in the domestic and foreign economic space.

The objective need for lending to enterprises is due to the peculiarities of the circulation of capital, which are: the constant formation of cash reserves, different duration of the turnover of funds in the economy, the close intertwining of cash and non-cash turnover, the separation of funds within the framework of economic entities. In the process of circulation, funds in some economic links are released, while others need to use them.

The need for lending is also due to the commercial organization of management in market conditions, when at each enterprise in the conditions of capital circulation there is an additional need for funds. With the help of the credit mechanism, enterprises receive the funds they need for normal operation.

Credit is of great importance in the development of economic ties between industries and regions, in increasing production efficiency, in the creation and use of income and profits. Credit is able to actively influence the volume and structure of the money supply, payment circulation and the speed of money circulation. Thanks to the loan, there is a faster process of capitalization of profits, and hence the concentration of production. Consequently, the topic of the thesis is relevant.

The purpose of the thesis is to analyze the process of lending to legal entities in a commercial bank. Upon reaching this goal, the following tasks were solved:

Study of the essence of lending;

Study of the organization of lending to legal entities in a commercial bank;

Analysis of the current state of lending to legal entities in Russia;

Familiarization with the main regulations governing legal lending in Russia;

Compiled a general description of the research object of the PF OJSC AKB "ROSBANK",

The main conditions and parameters of lending in the PF OJSC AKB "ROSBANK" have been studied.

The process of lending to legal entities in PF OJSC AKB "ROSBANK" is considered in detail

To achieve this goal, we used regulatory and legislative acts, the works of specialists and bank figures, statistical data, research articles in periodicals.

In addition to theoretical research, practical data from the Penza branch of OJSC AKB "ROSBANK", documents drawn up when applying for a loan and oral consultations of bank employees were also used.

All this made it possible to fully and in detail consider the process of lending to legal entities as a whole, its individual aspects. The theoretical and documentary aspects of the process have been studied.

CHAPTER 1 THEORETICAL BASIS OF THE PROCESS

CREDITS

1.1 The essence of lending

Bank lending to enterprises and other organizational and
legal structures for production and social needs is carried out with strict adherence to the principles of lending. The principles of lending represent
is the basis, the main element of the lending system, since they reflect
the essence and content of the loan, as well as the requirements of objective economic laws, including in the field of credit relations.
The principles of lending include: quality of the borrower, purpose, urgency of repayment, differentiation, security and
paid.
Borrower qualities. Commercial banks operate mainly with borrowed capital, a significant part of which can be claimed by owners in a short time and without prior notice. When considering an application for a loan, the bank must always take into account the prospect of repayment of obligations to depositors. Therefore, before issuing a loan, it is necessary to assess the risk associated with it and, first of all, the likelihood of non-repayment of the loan on time. The safety of the principal amount of the debt is one of the main principles that must always be observed when conducting credit operations by the bank. When receiving an application for a loan, the bank must study not only different aspects of the loan transaction, but also assess the personal qualities of the borrower, be it a private person or the head of a company. Assessing the personality of the client, the bank primarily focuses on the following points: decency and honesty, professional skills. These key qualities of the client are of paramount importance for the bank.

Special purpose. The first question that interests the bank is: "What is the loan taken for?" The purpose of the loan depends on the category of the borrower. If this is a private (individual) person, then he takes a consumer loan for the purchase of real estate, durable goods, or a personal loan to pay off debts, payment of fees for studies. When it comes to
entrepreneurs, the purposes of the loan will change significantly: they need capital to finance capital expenditures, purchase equipment, raw materials and materials, pay salaries to staff, and repay urgent obligations. The purpose of the loan serves as an important indicator of the degree of risk associated with the issuance of a loan. The bank, for example, avoids issuing loans for speculative transactions, since the repayment depends on the outcome of dubious and sometimes illegal transactions and, therefore, carries a high risk. When issuing a loan to a firm, the bank takes into account the frequency of bankruptcies in a given industry, and, naturally, is cautious about enterprises operating in unstable industries.
The purpose also determines the form of the loan. So, if the borrower with a loan
seeks to bridge the short-term cash flow gap
and payments, the most suitable form of loan is an overdraft.
Financing capital expenditures requires other forms of lending, such as
example, a term loan.

Repayment is the feature that distinguishes credit as an economic category from other economic categories of commodity-money relations. Credit cannot exist without repayment. Repayment is an integral feature of the loan, its attribute. The urgency of lending is a necessary form of achieving loan repayment. The principle of urgency means that a loan should not just be repaid, but repaid within a strictly defined period, that is, the time factor finds a concrete expression in it. And, therefore, urgency is a temporary certainty of the loan repayment. The loan term is the maximum time spent on the loaned funds in the borrower's household and acts as a measure beyond which quantitative changes in time turn into qualitative ones:
if the term for using the loan is violated, then the essence of the loan is distorted,
he loses his true purpose, which negatively affects the
the standing of money circulation in the country. This is confirmed by the co-
temporary situation with monetary circulation in the country, for which, along with
by other factors, the practice of prolonged violation of the principle of urgency in lending to certain industries and costs under a planned centralized management system also had a certain impact.
With the transition to market conditions of management, this principle
lending is given more importance than ever. First, from his co-
observance depends on the normal provision of social reproduction
cash, and, accordingly, its volumes, growth rates. In-
second, compliance with this principle is necessary to ensure liquidity
the commercial banks themselves. The principles of organizing their work do not allow
they invest the attracted credit resources in irrecoverable investments
zheniya. Third, for each individual borrower, compliance with the principle
the urgency of the loan repayment opens up the possibility of obtaining new loans at the bank, and also allows you to comply with your self-supporting interests without paying increased interest for overdue loans. Lending terms are set by the bank based on the terms of the turnover of the credited material assets and the recoupment of costs, but not higher than the normative ones. Two other principles of lending, such as differentiation and security, are very closely related to the principle of urgency of loan repayment.
Differentiated lending means that commercial banks do not have to unambiguously approach the issue of issuing a loan to their clients applying for it. Credit must be provided
only to those economic agencies that are able to return it in a timely manner. By-
this differentiation of lending should be carried out on the basis of
creditworthiness, which is understood as the financial condition
an enterprise that gives confidence in the ability and willingness of the borrower
return the loan within the period specified in the contract. These qualities are potential -
borrowers are assessed by analyzing their balance sheet on liquid
ness, provision of the economy with its own sources, the level of its
profitability at the moment and in the future.
Assessment of the creditworthiness of economic entities applying for a loan,
led by banks before the conclusion of loan agreements, gives them the opportunity
to a certain extent insure yourself against the risk of untimely
credit gate (and associated losses for banks) and, therefore,
to anticipate the observance of the principle of the urgency of lending by economic agencies.
Differentiation of lending based on the creditworthiness of economic entities,
prevents the coverage of their losses and losses at the expense of a loan and serves as a necessary
a necessary condition for its normal functioning on the basis of return -
ness and payment. Timeliness of loan repayment is in tight
dependence not only on the creditworthiness of borrowers, but also on the security
loan value. Until recently, the principle of credit security was interpreted by our economists very narrowly: only the material security of the credit was recognized. This meant that loans had to be issued against specific material values \u200b\u200bthat were at various stages of the reproduction process, the presence of which throughout the entire period of use of the loan testified to the security of the loan and, therefore, the reality of its return. Meanwhile, in the world banking practice, the types of credit security, in addition to material assets formalized by a pledge obligation, are guarantees and sureties of solvent legal entities and individuals, respectively, as well as insurance policies of the risk of non-repayment of a bank loan issued by borrowers in an insurance company. Moreover, not only one, but all of the listed forms of legal obligations can simultaneously serve as security for a loan issued to a business agency by a bank. Only with the adoption of the Law "On Banks and Banking Activities" the commercial banks of the Russian Federation were able to issue loans to their clients against various forms of loan security. Thus, in modern conditions, speaking about the security of loans, it should be borne in mind that the borrowers have legally formalized obligations that guarantee the timely repayment of the loan: a pledge obligation, a guarantee agreement, a surety agreement, an insurance agreement for liability of non-repayment of the loan. Security of obligations on bank loans in one or several forms at the same time is provided by both parties to the credit transaction in the credit agreement concluded between themselves.

In general, the assessment of the creditworthiness of the borrower at OJSC AKB KOR gives clear results, the creditworthiness is assessed qualitatively, the methodology meets modern requirements. The main advantages are the assessment of "credit history", the calculation of the main financial indicators, and the state of receivables and payables is also qualitatively assessed. It should be noted that in the analysis of the borrower's creditworthiness, the Bank identified some shortcomings, namely, that very little attention was paid to credit risk in OJSC AKB KOR. These shortcomings need to be minimized and a more perfect lending mechanism developed.

One of the main problems is the optimization of the composition of indicators characterizing banking risks. Depending on the amount of credit risk, the bank sets the interest rate on the loan. If the risk is too high, then the company may not get a loan at all.

When determining the risks, the bank needs to conduct an analysis in the following areas:

The financial position of the company.

The quality of the company's management.

Competitiveness of the company.

The client's credit history, his relationship with the bank.

State and development prospects of the industry and the company.

Assessment of the quality of the loaned transaction.

Determination of the possibility of accepting the proposed type of security.

The nature of potential credit risks varies depending on the transaction, and in many cases, the stage of the transaction. At the same time, credit risk can be divided into two types:

1) the risk associated with the borrower, assuming the likelihood of potential losses;

2) internal risk of a loan, which assesses the amount of monetary losses in the event the client fails to comply with the terms of the agreement

The lending process in the bank should be organized in such a way as to ensure reliable lending with adequate control mechanisms and at a high level of compliance with the needs of customers.

Figure: 6. Differentiation of credit risk

The correctness of the assessment depends on timely response to changes in the client's financial condition. Credit risk management should be carried out in the following ways:

Diversification of the bank's loan portfolio and investments;

Preliminary analysis of the borrower's creditworthiness;

Assessment of the cost of issued loans and their subsequent support;

Loan insurance;

Attraction of sufficient collateral.

Diversification of credit risk involves the dispersal of the bank's lending and investment opportunities. Credit risk increases with the increase in the total volume of lending and the degree of concentration of loans among a limited number of borrowers. In addition, the distribution of loans by maturity, by the purpose of loans, by the type of collateral, by the method of setting the rate for the loan, by industry, etc. In order to diversify, it is necessary to rationalize the loan, introduce floating lending limits, in excess of which loans are not provided regardless of the level of the interest rate.

Preliminary credit analysis is recognized as one of the most effective methods to mitigate credit risk. The result is most tangible if the high requirements inherent in this method are satisfied for the qualifications of personnel in assessing the acceptability of risk, the correctness of the selected theories and methods for assessing the creditworthiness of customers, depending on the volume of their operations, the stage of formation of the business entity.

Assessment of the cost of loans issued and their subsequent support is expressed in the classification of loans by risk groups and in order to minimize the bank's losses arising from the implementation of credit risk - creating a reserve for doubtful debts depending on the risk group.

The credit risk of an asset is determined by the type of asset and the type of collateral under the asset placement agreement. The classification of assets and determination of the size of the reserve are carried out by banks in the process of analyzing the quality of the bank's assets. The total amount of the reserve is regulated by banks depending on the amount of debt on assets, as well as on the credit risk group to which they are attributed, at least once a month, no later than the working day of the reporting month.

When assessing the financial condition of a debtor, guarantor (surety), the bank can form its own assessment system using the approaches used in domestic and international banking practice.

The quality and sufficiency of ensuring the timely repayment of credit debt is determined by the value and liquidity of the collateral and / or property and property rights, the security deposit of funds, the solvency of the guarantor (surety), as well as the solvency of the insurance organization with which the bank entered into a voluntary insurance policy against the risk of loan default.

Credit insurance involves the full transfer of the risk of non-repayment to the insurance company. Currently, there are many different options for insurance loans, but all the costs associated with their implementation are usually borne by the borrowers.

Attraction of sufficient collateral means that the bank is almost completely guaranteed the return of the loan and interest on it. It is important that the amount of loan collateral covers not only the amount of the loan, but also the amount of interest on it. However, the priority in protecting against credit risk should not be given to raising sufficient collateral to cover losses, but rather to analyzing the borrower's creditworthiness to avoid these losses. This is due to the fact that the loan is issued not with the expectation that to repay it will have to sell the assets that serve as collateral, but that it will be returned on time and in full in accordance with the loan agreement.

To limit the level of credit risk, limits are set on the volume of transactions for borrowers (or groups of related borrowers). Limits can be subdivided by types of financial instruments and are distributed among the structural units responsible for using the limits.

Thus, in order to assess the level of credit risk in a bank and the quality of its management, it is necessary to analyze and assess the system of prevention, identification, assessment, control and minimization of risk, as well as its compliance with the bank's credit policy.

It should also be noted that under the conditions offered to legal entities in an environment of competition and the offer of various credit services, OJSC AKB KOR may surrender its positions due to the high interest rate on the loan, the lack of credit products provided for a period of more than three years, and long processing of a loan application (about a month). The aforementioned problems of lending provide a basis for the development of proposals for improving lending at OJSC AKB KOR. These recommendations, implemented in combination, will help reduce the processing time of applications, which will significantly increase the Bank's competitiveness against the background of other commercial banks.

CONCLUSION

As a result of the work done, the mechanisms of lending to enterprises by commercial banks were revealed. In most cases, the bank in the current situation is guided by the use of the method of providing credit resources based on economic factors and allowing to combine, first of all, the interests of the bank as a commercial entity, and secondly, the interests of their clients and the national economy as a whole. Improving lending practice requires the development of an optimal lending organization for the bank. To this end, banks that have qualified and professional bank employees in their staff pay attention to finding the best options for calculating the creditworthiness of borrowers and lending rules. General guidelines and recommendations should enable the proactive work of practitioners involved in the selection of specific credit projects and the development of the terms of credit agreements. At the same time, it is possible to determine the maximum loan amounts, decisions on which are made by employees of different job categories. The bank's credit policy is also developed on the basis of the provisions of the economic and monetary policy of the state, the current economic situation in the region.

The stages of the credit process are analyzed, it includes five main stages: consideration of an application for a loan; analysis and assessment of the borrower's creditworthiness; execution of a loan agreement; issuance of a loan; control over the use and repayment of the loan (credit monitoring) and the payment of interest on it. Only with a clear interaction of the structural divisions of the bank and with the qualitative fulfillment of the tasks assigned to each division, a more thorough assessment of the creditworthiness of a potential borrower and monitoring after a loan is possible, which will allow the bank to reduce credit risks.

The procedure for granting bank loans was considered. Carrying out lending on terms of urgency, repayment, payment and security, regulating the relationship between the lender and the borrower through a loan agreement, commercial banks strive to provide loans to reliable customers in order to eliminate the risk of non-repayment and ensure the timely return of the issued funds.

The analysis of the financial position of the borrower was carried out. The lender must carefully study potential borrowers, assess their creditworthiness, i.e. the ability to fully and on time pay off your loan obligations (principal and interest). It can be concluded that the analysis of the borrower's financial position should take into account the nature and scale, industry and regional specifics of its activities and contain an assessment of all significant factors associated with the borrower's activities and that can affect the fulfillment of its obligations to its counterparties, creditors, including banks , the budget of all levels and their employees.

The analysis of the main conditions and parameters of lending to legal entities in OJSC AKB KOR was carried out. The terms of lending to legal entities in OJSC AKB KOR are presented in the Bank's credit policy. The process of lending in OJSC AKB KOR is disclosed on the example of Detsky Mir LLC. The organization submits a package of documents to OJSC AKB KOR, on the basis of which the financial condition and compliance of the main indicators with the bank's requirements are analyzed, as well as compliance with the requirements for securing the proposed loan. Consideration of the package of documents showed that the performance indicators of Detsky Mir LLC, as well as the requirements for loan security, are satisfied by JSC AKB KOR OJSC.

In general, the assessment of the borrower's creditworthiness at OJSC AKB KOR gives clear results, the creditworthiness is assessed qualitatively, the methodology meets modern requirements. The main advantages are the assessment of the "credit history", the calculation of the main financial indicators, and the state of receivables and payables is also qualitatively assessed. It should be noted that in the analysis of the borrower's creditworthiness, the Bank revealed some shortcomings, namely, that in OJSC AKB KOR very little attention was paid to credit risk. These shortcomings should be minimized using the recommendations for improving lending mechanisms, which were described above.

BIBLIOGRAPHY:

I. Regulatory documents

2. Regulation of the Bank of Russia "On the procedure for calculating interest on operations related to the attraction and placement of funds by banks, and reflecting these operations in accounting accounts" dated June 26, 1998 N 39-P (as amended on December 24, 1998 . N 64-P)

3. Regulation of the Bank of Russia "On the procedure for the provision (placement) of funds by credit institutions and their return (repayment)" dated August 31, 1998 No. 54-P (as amended on July 27, 2001)

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ALL-RUSSIAN CORRESPONDENCE

FINANCIAL AND ECONOMIC INSTITUTE

Faculty Financial and creditDepartment Money, credit and securities

"I approve"

Representative of the department "___" ___________ 2001

Assignment for the student's final qualifying work

Komlevoy Elena Nikolaevna

Work theme: Organization of lending to legal entities by commercial banks (based on information and analytical materials).
The deadline for the student's completed work June 2, 2001.
Calendar plan

Name of sections of the WRC	Completion date	Note
Introduction
Chapter 1.Fundamentals of Lending Organization 1.1. The essence of the loan, principles of lending 1.2. Classification of credit transactions 1.3. Commercial bank credit policy 1.4. Bank lending methods
Chapter 2.Organization of lending to legal entities by commercial banks 2.1. Loan documentation 2.2. Assessment of the borrower's creditworthiness 2.3. Loan agreement - legal basis for loans 2.4. Securing loans
Chapter 3.Credit risks 3.1. Essence and classification of credit risks 3.2. Calculation of credit risks
Conclusion
List of references
Applications

Student __________________________________

Manager _____________________________

CHAPTER 2. ORGANIZATION OF LENDING LEGAL ENTITIES BY COMMERCIAL BANKS

CHAPTER 3. CREDIT RISKS

INTRODUCTION

The term "Commercial Bank" originated in the early stages of the development of banking, when banks served mainly commerce, commodity exchange operations and payments. The main clientele was merchants. Banks credited transportation, storage and other operations related to the exchange of goods. With the development of industrial production, operations arose for short-term lending of the production cycle: loans to replenish working capital, create stocks of raw materials and finished products, pay wages, etc. The terms of loans were gradually increased, part of the banking resources began to be used for investments in fixed assets and securities. Recently, there have been significant changes in the formation of the banking system in Russia. Leading banks have been identified, the main areas of banking specialization have been formed, and the division of the client base between financial institutions has been completed.

The transition of Russia to a market economy, an increase in the efficiency of its functioning, the creation of the necessary infrastructure cannot be ensured without the use and further development of credit relations.

Credit stimulates the development of productive forces, accelerates the formation of sources of capital for expanding reproduction based on the achievements of scientific and technological progress.

Credit is of great importance in the development of economic ties between industries and regions, in increasing production efficiency, in the creation and use of income and profits. Credit is able to actively influence the volume and structure of the money supply, payment circulation and the speed of money circulation. Thanks to the loan, there is a faster process of capitalization of profit, and, consequently, the concentration of production.

The purpose of this work is to analyze the theory of bank loans, to determine the types of loans, to determine methods for managing loans and assessing credit risks. To highlight the most effective methods of credit management, the application of these methods in the banking system of modern Russia. Identify lending problems associated with professional banking and Russian national specificity, identify ways to improve banking techniques, and determine the prospects for banking management in credit management.

To achieve this goal, we used regulatory and legislative acts, the works of specialists and bank figures, statistics, research articles in periodicals. In addition to theoretical research, practical data from specific banks, documents drawn up when applying for a loan and oral consultations of bank employees were also used.

All this made it possible to fully and in detail consider the lending process as a whole, its individual aspects. The theoretical and documentary aspects of the process have been studied. The functions of the lender and the borrower, their rights and obligations, as well as the lines of conduct of both parties in market conditions were determined throughout the interaction. When examining all the available data, possible ways of developing credit relations in the Russian Federation were considered.

The final qualifying work consists of an introduction, three chapters, a conclusion and a list of references. The first chapter is devoted to the theoretical aspects of the credit process - it examines the essence and classification of credit transactions. The second chapter provides an analysis of the process of lending by commercial banks to legal entities: the documents required for granting a loan are indicated, special attention is paid to the loan agreement as the basis for lending, the process of assessing the borrower's creditworthiness is considered, as well as the guarantee of loan repayment - its security. The third chapter outlines the problems of calculating the credit risks of commercial banks and ways to reduce them in modern conditions.

CHAPTER 1. BASICS OF LENDING ORGANIZATION

1.1 The essence of the loan, the principles of lending.

Credit operations concept.

Credit operations are the relationship between the lender and the debtor (borrower) regarding the provision (receipt) of funds for temporary use, their return and payment.

Lending operations of banks and lending institutions are, as a first approximation, divided into active and passive. In the first case, the bank (credit institution) is the creditor, i.e. the party giving a loan (lending money) and placing funds in the form of deposits (deposits), in the second - by the debtor, i.e. the party that takes a loan and accepts funds in the form of deposits (deposits). Thus, both active and passive lending operations involve the use of both loans (loans) and deposits (deposits). In other words, lending operations include lending operations and deposit operations.

Loan operations are the actions of banks (credit institutions) to provide and (or) receive loans, and to return them and pay the corresponding interest, and deposit operations are the actions of the same employees to place and (or) attract deposits to themselves, return and pay them interest due.

Conditions for granting a loan.

There are four of them: repayment, urgency, payment and security.

Repayment is due to the nature of the loan. It means that the funds provided in the form of a loan serve only as a temporary source of replenishment of working capital or funds intended for capital investments of the enterprise, and after a certain time must be returned to the bank. Hence, such a principle of lending as urgency follows. Loans are repayable within a specified time frame in accordance with the obligations assumed by the borrower. These terms follow from the actual terms of the turnover of funds at the credited enterprises. The repayment and urgency of lending stimulate the rational use of funds. The need to repay the loan within a certain period contributes to the most efficient use of the loan and serves as a guarantee of the bank's obligations to enterprises, organizations and citizens, whose funds it uses as a credit resource.

Payable means that banks charge a fee in the form of interest for the loans provided. Interest is the "price" of a loan, which is formed taking into account the emerging supply and demand for credit resources.

The interest for the use of the loan is set in such a way that the amount of interest received from the borrower covers the bank's expenses for raising funds necessary for the loan (with the addition of margin). Interest rates depend on the term of the loan, the risk of insolvency of the borrower, the nature of the collateral provided, the content of the lent event, the rates of competing banks and other factors and are determined differentially in each loan agreement.

Interest rates for a loan can be fixed and floating, which is also provided for in the loan agreement. Fixed interest rates remain unchanged throughout the life of the loan. Floating rates fluctuate depending on the conditions of the money market, changes in the amount of interest on deposits, the emerging supply and demand for credit resources, as well as the state of the economy and finances of the borrower and can be revised by the bank during the loan term with mandatory notification of the borrower.

In case of late payment of interest for using a loan due to lack of funds on the borrower's current account, the bank may charge a penalty for each day of delay in payment in the amount determined by the loan agreement. In accordance with the terms of the loan agreement, the bank may charge the borrower a commission on his obligations to use the loan, charged on the unused portion of the loan.

The security of the loans issued by the bank reduces the risk of losses, since if this principle is observed, the return of the borrowed funds to the bank is guaranteed. The amounts and types of collateral depend on the financial position of the borrower, the terms of the loan, and the relationship with the borrower.

A specific example of the conditions for granting loans by one of the banks is given in Appendix 1 "Regulations on the procedure for lending to OJSC Commercial Bank" Verkhnevolzhsky ".

1.2 Classification of credit transactions.

Credit operations

Active operations Passive operations

1. Lending to clients 6. Deposits from clients

2. Lending to other banks 7. Bank deposits

3. Deposits with other banks 8. Bank loans, including

4. Funds on the reserve correspondent account number of the central

at the central bank

5. Funds on correspondent accounts in others

So, lending operations are lending to customers and other banks (active) and bank loans (passive), deposit operations are deposits in other banks, funds on correspondent accounts with the central bank and other banks (active), as well as deposits and loans from banks ( passive).

The main subject of lending operations is a loan (loan) as a certain amount of money that is issued (received), returned and paid. Loan operations form the basis of the bank's vigorous activity in the placement of its resource base. They provide banks with a significant portion of their income.

The main subject of deposit operations is a deposit (deposit) as an amount of funds (in cash or non-cash form, in national or foreign currency) transferred to the bank by their owner for storage under certain conditions. For commercial banks, deposits are the main type of their passive operations and, therefore, the main resource for carrying out active credit operations.

There are various signs of the classification of deposits. Depending on the depositor, deposits are usually divided into deposits of individuals and legal entities. Depending on the term and order of withdrawal, deposits are subdivided into time deposits and demand deposits.

The return of the value received by the borrower (repayment of the debt to the bank) on the scale of one enterprise and the entire economy should be the result of reproduction on an increasing scale. This determines the economic role of credit and serves as one of the most important conditions for the bank to receive profit from credit operations.

Classification of credit objects.

In a narrow sense, an object (from Latin objectum - an object) is a thing for which a loan is issued and for which a deal is made. In Russian practice, short-term loans are issued against various elements of inventories. In industry, for example, banks lend to raw materials, basic and auxiliary materials, fuel, containers, work in progress, funds in payments. In trade, the typical object of lending is goods in circulation. From agricultural enterprises, banks provide loans for the costs of crop and livestock raising, mineral fertilizers, fuel, etc.

Long-term loans are directed to lending to such objects as:

construction of production facilities;
reconstruction, technical re-equipment, expansion of production facilities;
purchase of machinery, equipment and vehicles;
organization of the release of new products;
construction of non-production facilities, etc.

The object of bank lending can be private or aggregate. It becomes private in the event that it is detached, separated from other loans. For example, a bank can lend from its client separately for needs related only to the accumulation of containers, raw materials or finished products. There are cases when, in the total composition of loans, loans are allocated, which are provided not in general for stocks of raw materials, but in connection with the accumulation of a certain kind of it.

The direct opposite of a private object is an aggregate object, when a loan is issued for a set of objects that are not isolated from each other, but combined into one (common, aggregate) object.

A loan can be issued not only for the formation of a material object, the borrower may not have anything at all for which a loan can be obtained in physical form. In this case, the object is the borrower's need for additional resources. Therefore, in a broad sense, the object expresses not only the object in its material, tangible state, but also the material process as a whole, which causes the need for a loan and for the sake of ensuring the continuity and acceleration of which a loan transaction is concluded. In some cases, the general need for a loan may be associated with subjective factors that express shortcomings in the activities of borrowers. In an unstable economy, the availability of such loans is more noticeable. For a creditor bank, such loans are associated with great risk, they often turn into the category of difficult (problem) loans, which are not repaid to the bank for a long time, worsen its loan portfolio, necessitating an analysis of the borrower's creditworthiness.

Classification of lending entities.

The subject of crediting from the standpoint of classical banking are legal entities or individuals who are capable and have material or other guarantees to make economic, including credit transactions.

In this case, the borrower can be any subject of property that inspires confidence in the bank, has certain material and legal guarantees, who wants to pay interest on the loan and return it to the credit institution.

The subject of receiving a loan can be of very different levels, ranging from an individual private person, enterprise, company, up to the state. Before the transition of our economy to a market economy, enterprises and organizations were divided mainly in the sectoral context: industrial, agricultural, construction enterprises, trade, procurement, supply and marketing organizations. Gradually, this criterion was abandoned and the following classification of lending entities has now been adopted:

state enterprises and organizations;
cooperatives;
citizens engaged in self-employment, tenants;
other banks;
other farms, including authorities, joint ventures, international associations and organizations.

The division of bank loans by subjects of their receipt gives rise to another concept of classification in the lending system - the types of loans.

Types of bank loans.

The type of bank loans reflects a set of properties that are characteristic of a particular credit transaction in economic and organizational terms. The economic properties of a credit transaction are the properties of the loan itself, they are the same (repayment, payment, urgency). Organizational properties in each case may differ - the procedure for issuing and repaying loans may be different. In accordance with the sectoral focus, industrial, trade and interbank loans can be allocated. In the US, agricultural loans are also highlighted in the loan qualification system.

In each case, the types of loans may have their own instructions governing the procedure for their issuance and repayment.

The types of loans differ not only by the subjects of their receipt, but also by other criteria. These include:

connection of the loan with capital movement, scope of the loan, loan term, loan repayment, loan security.

According to the relationship between credit and capital flows, it can be divided into two types: a money loan and a capital loan. The loan of money is connected, as a rule, with consumer or other purposes, when the loan does not bring an increase in the social product, but is spent and repaid from the already created savings. The loan of capital, on the other hand, presupposes not the consumption of the product, but its increase; the borrower in this case is obliged to use the loan in such a way as to obtain a new value with its help, and not only to return the loan, but also to pay the loan interest as part of the profit additionally received as a result of using bank funds. A capital loan is the most common type of bank loan.

According to the scope of application, loans are divided into loans in the sphere of production and the sphere of circulation. For modern practice, it is more typical to invest not in the sphere of production, as is usually accepted from the standpoint of a healthy economy, but in the sphere of circulation, where the turnover and profitability of operations is higher than in the production sphere. A feature of modern practice is that the producers themselves are often deprived of the opportunity to apply to the bank for a loan, since the payment for its use turns out to be an unbearable burden for them.

The loan interest paid for the use of the loan turns out to be too large, cannot be included in the cost price, or paid out of profit due to the not so significant profitability of operations in the production sphere. Most of the trading and intermediary firms are able to pay high interest rates. Hence the bias of credit investments not towards the development of production (which is most important from the standpoint of stabilizing the market and reducing inflation), but towards trade.

Depending on the term, bank loans are divided into short-term, long-term and medium-term.

Modern lending is predominantly short-term in nature. From the standpoint of many market economies, short-term loans are loans with a term of less than one year. These are mainly loans serving the circulation of working capital, the current needs of customers. Traditionally, industrialized countries use the following types of short-term lending to enterprises: overdraft loans (debit accounts), credit lines (including seasonal and revolving ones), loans in the form of accounting and pledge of promissory notes, etc.

Long-term loans include loans with maturities exceeding 6 years (in some countries, for example, the United States, long-term loans are loans with a maturity of more than 8 years). These loans serve the needs for funds necessary for the formation of fixed capital, financial assets, as well as some types of working capital.

Medium-term loans are loans with a term of use ranging from 1 to 6 years. The scope of their application coincides with servicing needs through a long-term loan.

Medium and long-term loans to enterprises are provided against the debt obligations of the borrower. When providing loans to individual borrowers, commercial banks use such types of loans as mortgage loans, loans against securities, revolving loans (overdraft, bank credit cards), consumer loans.

From the point of view of world practice, the criterion of the duration of the terms of customer lending does not have a single standard for all. In Soviet practice, for example, short-term loans were announced for some loans extended for a period of 1 to 3 years.

The realities of the money turnover in modern Russia significantly modify the standards of short-term, medium-term and long-term credit established in banking practice. Short-term loans are loans for up to 6 months, medium-term loans for a period of 6 to 12 months, long-term loans for a period exceeding 1 year. Unlike, for example, the American practice, where short-term loans are often issued without a strictly fixed term (on demand), they are called "oncall", Russian banks are obligatory to set the term of use and repayment of the loan.

Proceeding from the criterion of payment for the loan, it is possible to distinguish bank loans with a market interest rate, increased and concessional. Market price credit - this is its price, which is formed in the market at the moment, based on supply and demand, for various types of bank loans. In an unstable economy, this is a moving price that tends to increase. Loans with an increased interest rate, as a rule, arise in connection with a high risk of lending to a client, violation of credit conditions, a forecast of an increase in the cost of credit resources, etc. Loans provided on terms of preferential interest are an element of a differentiated approach to lending. They are provided to shareholders when refinancing centralized loans of the issuing bank (subject to a reduced price in comparison with their market price), to bank employees (in special cases, banks provide them with interest-free loans).

Loan security is a fundamental element of the bank lending system, it is considered to be the “last line of defense” when deciding on the possibilities of financing a particular project. Loans may or may not be collateralized directly, indirectly. In international practice, loans are divided into secured, unsecured and partially secured.

In world banking practice, the provision of loans has always been treated ambiguously. In the centralized banking system, the most reliable loans were those that were secured in the form of inventory items. In Western practice, there was no such categorization. On the contrary, the experience of Western countries showed that the availability of material security does not yet give confidence in the timely repayment of bank loans. It is one thing to stock inventories that are slowly circulating and do not have a solid sale; another thing is easily realizable assets, the property of the borrower as a whole. It is no coincidence that the lack of confidence in inventories as a loan security allowed a number of Western economists to conclude that loans with a similar quality of security are the most unreliable, while a loan that is not secured by inventories (they are not in stocks, they are all in turnover), on the contrary, is the most reliable.

If, for example, a loan is issued against stocks of finished goods, which, as it turned out, cannot be sold, then such a loan, although secured by inventory items, can hardly be called reliable. On the contrary, the repayment of the loan in this case is very difficult, in connection with which it should rather be attributed to the category of unreliable loans.

Quality is important to ensure. If the inventory is liquid and sufficient, then this is not bad at all for a loan, and it is unlikely that such collateral should be ignored. On the other hand, it would be wrong to disregard the positive qualities of unsecured (blank) loans, especially when they are provided to first-class borrowers and the entire property of the borrower is the guarantor.

In Western practice, unsecured loans are provided to both legal entities and individuals. When issuing an unsecured (blank) loan to enterprises, the reputation of the borrower, his financial position, future income, as well as previous compliance with the lending rules are taken into account. Unsecured loans can be disbursed in large amounts to large enterprises, large trading companies that are first-class borrowers with skilled management and an excellent development history.

In many ways, this also applies to individuals. Banks, providing their blank loans to individuals, assess their property, take into account the presence of their own home, permanent work for many years, the timeliness of repayment of loans in the past.

When accounting and analyzing credit transactions, other criteria can be used as the basis for their classification. For example, according to the method of repayment of loans: principal and interest can be repaid in a single payment at the end of the period, either periodically (usually monthly, quarterly or semi-annually), or principal in a single payment at the end of the loan period, and interest - in periodic payments. Even in most countries, loans are divided into two blocks: loans to legal entities and loans to individuals. If the loans of the first block are provided for production purposes (for example, for the expansion of production and sales of products), then the loans of the second block serve the personal needs of the population.

Bank loans can be subdivided depending on the currency that is used in the lending process, depending on whether or not loan debt is limited, permanently revolving (revolving) and interrupted loans, etc.

A serious reason for the allocation of a special group of loans is their size. In the world and domestic banking practice, the so-called "large" loans are regulated. The category of large loans in Russia includes loans, the amount of which to one borrower (or a group of borrowers) exceeds 5% of the bank's capital.

1.3 Credit policy of a commercial bank.

The credit policy creates the basis for the entire lending process, formulates general principles and restrictions, is approved by the Bank's Council and drawn up as a written memorandum, which is followed by all employees of the Bank. The content and structure of this document is different for different banks, but the main points are usually similar in documents of this kind.

First of all, a general policy goal is formulated, for example, the provision of reliable and cost-effective loans. The degree of risk should correspond to the usual rate of return on loans, taking into account the cost of credit resources and the bank's administrative costs. In addition, a decoding is done how the bank is going to achieve the stated goal. To do this, the types of loans that are acceptable to the bank, loans that the bank recommends to refrain from, the preferred circle of borrowers, undesirable borrowers for the bank in various categories, the geography of the bank's lending activities, the limitation of the amount of loans for various categories of borrowers, the bank's policy in the field of credit risk management , audits and controls.

Commercial banks, in accordance with their specifics, develop general principles of credit policy (in world practice - a memorandum on credit policy), form its main goal, the main directions of lending. Credit transactions are associated with a risk, the degree of which is growing in the Russian Federation in the context of a decline in production and economic instability. This determines the need to form a high-quality loan portfolio of the bank, in which the share of risky operations should be less, despite the fact that in some cases such operations can be profitable for the bank. The degree of risk should correspond to the normal rate of return on loans, taking into account the cost of credit resources and the bank's administrative costs. When determining the credit policy, the credit strategy should be focused on diversifying both the composition of clients and the range of loans (services) provided to them, which is necessary in a competitive environment.

Credit policy is about the need to achieve the goal of asset growth and improve their quality. At the same time, preference is given to the second direction of credit policy.

A bank's strategy is a way of using certain tools and methods to implement the bank's policy. A credit strategy may consist of an analysis in the following main areas:

assessment and control over the state of the loan portfolio;
taking into account the degree of risk;
diversification of the bank's operations: by economic sectors, types of operations and services in order to reduce the overall credit risk of the bank;
creation of reserves to cover loan losses;
close control and supervision of problem loans.

The law places overall responsibility for lending operations on the bank's board of directors. The board of directors delegates the functions of practical granting of loans to lower levels of management and formulates the general principles and limitations of credit policy. Improving lending practice requires the development of an optimal lending organization for the bank. To this end, banks that have qualified and professional bank employees in their staff pay attention to finding the best options for calculating the creditworthiness of borrowers and lending rules. The organization of lending should ensure the unconditional repayment of loans, the targeted nature of their use, stimulation of the growth in the volume of production that meets the needs of society, and an increase in the share of credit investments directed to investment projects in promising highly efficient industries. General guidelines and recommendations should enable the proactive work of practitioners involved in the selection of specific credit projects and the development of the terms of credit agreements. At the same time, it is possible to determine the maximum amount of loans, decisions on which are made by employees of different job categories. The bank's credit policy is also developed on the basis of the provisions of the economic and monetary policy of the state, the current economic situation in the region.

As an example, Appendix 2 provides a provision on credit policy for 2001 of the Verkhnevolzhsky commercial bank in the city of Rybinsk, Yaroslavl region.

In general, the assessment of the borrower's creditworthiness at OJSC JSCB "KOR" gives clear results, the creditworthiness is assessed qualitatively, the methodology meets modern requirements. The main advantages are the assessment of "credit history", the calculation of the main financial indicators, and the state of receivables and payables is also qualitatively assessed. It should be noted that in the analysis of the borrower's creditworthiness, the Bank revealed some shortcomings, namely, that in OJSC AKB "KOR" very little attention was paid to credit risk. These shortcomings need to be minimized and a more perfect lending mechanism developed.

When determining the risks, the bank needs to conduct an analysis in the following areas:

The financial position of the company.

The quality of the company's management.

Competitiveness of the company.

The client's credit history, his relationship with the bank.

State and development prospects of the industry and the company.

Assessment of the quality of the loaned transaction.

Determination of the possibility of accepting the proposed type of security.

The nature of potential credit risks varies depending on the transaction, and in many cases, the stage of the transaction. At the same time, credit risk can be divided into two types:

) the risk associated with the borrower, assuming the likelihood of potential losses;

) internal risk of a loan, which estimates the amount of monetary losses in the event the client fails to comply with the terms of the agreement

The lending process in the bank should be organized in such a way as to ensure reliable lending with adequate control mechanisms and at a high level of compliance with the needs of customers.

Figure: 6. Differentiation of credit risk

The correctness of the assessment depends on timely response to changes in the client's financial condition. Credit risk management should be carried out in the following ways:

diversification of the bank's loan portfolio and investments;

preliminary analysis of the borrower's creditworthiness;

assessment of the cost of issued loans and their subsequent support;

credit insurance;

attraction of sufficient collateral.

When assessing the financial condition of a debtor, guarantor (surety), the bank can form its own assessment system using the approaches used in domestic and international banking practice.

It should also be noted that under the conditions offered to legal entities in an atmosphere of competition and the offer of various credit services, JSCB KOR OJSC may surrender its positions due to the high interest rate on the loan, the lack of credit products provided for a period of more than three years, and long processing of a loan application (about a month) The above-mentioned lending problems provide a basis for the development of proposals for improving lending at OJSC AKB KOR. These recommendations, implemented in combination, will help reduce the processing time of applications, which will significantly increase the Bank's competitiveness against the background of other commercial banks.

2.3 Commercial bank lending mechanism

The lending mechanism assumes a specific method of providing a loan, the choice of which depends on the characteristics of the production and commercial cycle of the borrower, the uniformity of proceeds from sales, credit history, as well as on the nature of the borrower's need for borrowed funds (temporary or permanent). Thus, trade enterprises traditionally use a significant share of borrowed funds in their turnover; the speed of capital turnover and the uniformity of the receipt of trade proceeds allow them to borrow funds without disturbing their liquidity.

In accordance with the Regulation of the Bank of Russia "On the procedure for providing (placing) funds to credit institutions and their return (repayment)" dated August 31, 1998 No. 54-P, credit is provided to legal entities only in a non-cash form by crediting funds to the settlement (current) the borrower's account, including when granting a loan to pay for payment documents. Individuals can receive a loan both by bank transfer (by crediting to a bank account) and in cash (through the bank's cash desk). Loans in foreign currency are issued to both legal entities and individuals only in non-cash form.

Loan granting methods:

ü one-time crediting of funds or one-time issuance of cash (to an individual);

ü opening a credit line, i.e. conclusion of an agreement (agreement) on the maximum loan amount 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. Within the limit of the credit line, the borrower is provided a loan by paying payment documents as required or in separate tranches. Repayment of a loan under a credit line can occur both within a certain time frame based on the client's urgent obligations, and as the funds are received on the borrower's account;

ü crediting by the bank of the settlement (current, correspondent) account of the client of the bank in case of insufficient or absence of funds on it and payment of settlement documents received in the name of the client. Such a loan is called overdraft;

ü participation in the provision (placement) of funds to a bank client on a syndicated (consortium) basis (several banks are united to issue a large loan).

The return (repayment) of the loan and the payment of interest on it can be made by debiting funds from the borrower's current account on his payment order, as well as debiting funds in the order of the established sequence based on the bank's payment request. In the latter case, when concluding a loan agreement, the borrower must document his consent to the direct debiting of funds from his account to repay the loan.

If there is a lack of funds in the borrower's current account, the bank first of all collects interest on the loan, and then the principal debt.

Individuals can repay loans and pay interest on them from their bank accounts on the basis of their written instructions, as well as by postal order, cash deposit to the bank's cash desk. Repayment of loans received by borrowers who are employees of the bank, and interest on these loans can be made by deductions from the amounts due to them wages.

Repayment of loans in foreign currency is made only by bank transfer.

If the borrower has not paid the amount due within the terms established by the agreement, his debt on repayment of the principal debt or payment of interest is transferred to the account of overdue debt on the principal debt or interest.

3. Credit operations of a commercial bank.

3.1 Lending to individuals.

Currently, many Russian banks are engaged in lending to the population. Sberbank is undoubtedly the leader in this area: it accounts for over 22% of the total volume of loans provided by the CB to the population.

Sberbank provides citizens with several types of loans, both in rubles and in foreign currency. A ruble loan can be issued in cash or by bank transfer, a foreign currency loan - only by bank transfer. The loan amount depends on the borrower's solvency (except for a loan secured by securities). Loans in foreign currency and rubles can be obtained from the lending departments of the bank's branches, loans in rubles - at any branch of Sberbank. Loans are provided only to citizens of the Russian Federation. The interest rate is set by the Committee of the Savings Bank of Russia on interest rates and limits.

Credits for urgent needs (Table 1) are issued for the purchase of vehicles, garages, expensive household items, household furnishings, paid medical services, the purchase of tourist and sanatorium vouchers and other consumer purposes.

To stimulate the purchase of domestically produced goods (expensive equipment, furniture, cars), Sberbank issues loans to the population for these purposes at lower interest rates for up to five years in rubles at 35% per annum.

Characteristics of loans for urgent needs.

Table No. 1.

Loan amount	Interest rate	Loan term
Depends on the solvency of the borrower and the security provided for the repayment of the loan. The maximum size is $ 10,000.	In rubles - 38% per annum, in foreign currency - 14% per annum.	Up to 3 years	Monthly, starting from the next month after the execution of the loan agreement.	Doubled effective interest rate under the loan agreement.

Long-term loans (Table 2) are intended for the acquisition, construction and reconstruction of real estate (apartments, residential buildings, summer cottages, garden houses, land plots).

Loans for construction and reconstruction are issued in two installments or more within two years from the date of the first transaction on the loan account (from 20 to 50% of the loan amount under the agreement).

Sberbank also provides long-term loans for the purchase of housing under the presidential program "State Housing Certificates" within 23% of the amount of subsidies, for up to 15 years at a preferential interest rate of 20% per annum. This program is aimed at resolving the housing problem for military personnel transferred to the reserve.

Characteristics of long-term loans.

Table No. 2.

Percentage

use

Periodicity

repayment

penalties

for delay

payment and

percent

providing

Depends on

ability to pay

excavator and provided security for the repayment of the loan. The maximum loan amount is $ 60,000, but not more than the cost of construction or upcoming work

In rubles - 37% per annum, in foreign currency - 13% per annum.

Up to 15 years

Monthly,

from the next month after the execution of the loan agreement.

Double effective interest rate under the loan agreement.

Not later than 2 months from the date of obtaining a loan for the purchase of a property. On loans for construction and reconstruction. The report is submitted until the next loan amount is received.

Sberbank is also engaged in lending to citizens to improve their living conditions, in cooperation with regional executive authorities. Since credit remains expensive, the greatest success in this area is achieved provided that those on the waiting list are allocated subsidies from local budgets for payment; prescriptions for a loan.

Sberbank provides citizens with loans secured by securities (Table 3) - savings certificates, shares, bills of Sberbank of Russia, bonds of the state savings loan (OGSZ) and bonds of the internal state foreign currency loan (OVGVZ).

Characteristics of loans secured by securities.

Table No. 3.

Loan amount	Interest rate	Loan term	Loan repayment frequency	The amount of the penalty for late payments and interest
Depends on the assessed value of the securities provided	26% per annum.	Up to 6 months	Lump-sum, within the period specified in the loan agreement	the effective interest rate under the loan agreement.

Securities accepted for mortgage are transferred by the borrower to the bank for safekeeping. There is no storage fee. Issuance to the borrower of mortgaged securities is made only after he has fully repaid the debt on the loan.

The loan is provided only in rubles, and its size depends on the assessed value of the securities.

Lending to legal entities.

Information support of credit transactions for the issuance of a loan is preceded by a large preparatory work of the bank, during which the creditworthiness of the borrower is studied, the parameters of lending are determined - the amount, terms, payment for the loan, the lending mode is selected. The bank must use all sources of information available to it about the potential borrower. An interview with a potential borrower is conducted, questionnaires are filled out. If the client has already received a loan from this bank, the loan officer has the opportunity to familiarize himself with his credit history, which is in the bank's archive. The form of maintaining credit history is not regulated. Credit history is also understood as documents submitted by the borrower (account statements and (or) other documentary confirmation by the borrower of the fact that he attracted bank loans and confirmation of his fulfillment of the terms of the credit transaction. A good credit history testifies to high-quality debt service (no overdue payments to pay the principal debt or interest payments over five calendar days).

The Bank of Russia is creating a "Credit Bureau", an information service, which is a data bank on the financial condition, credit histories of clients of various banks, where it will be possible to request information about the future borrower.

To make a decision on granting a loan, the bank carefully studies the borrower's creditworthiness - his ability to timely repay the loan debt. The creditworthiness and solvency of the borrower depends on his financial situation. The main sources of information for assessing the financial position of an enterprise are balance sheets and other forms of financial statements for several reporting dates.

The analysis of the creditworthiness of the enterprise according to its balance sheet is carried out by the credit inspector; he also studies other available information about a potential borrower and makes a preliminary conclusion about the possibility of providing him with a loan. The decision on granting a loan or on refusal is made by the bank's credit committee.

The form of collateral for long-term lending, which ensures the greatest neutralization of the bank's credit risk, is a mortgage - real estate collateral. The object of a mortgage can be first a land plot allocated for a construction site, and then mortgages are issued for the object under construction itself.

To obtain a loan for capital investments, an enterprise submits to the bank an application, a certificate of approval of design and estimate documentation, a title list, a capital investment plan, a loan agreement, a pledge obligation.

In addition, the company must submit to the bank a feasibility study with calculations confirming the effectiveness and cost recovery of the projects being credited. To determine the economic feasibility, the loan amount, the amount of the loan payment and the loan terms, the following information is provided (with a breakdown by years of the planned duration of the investment project):

ü about the amount and structure of capital investments (the cost of construction and installation works, the cost of equipment);

ü schedule for the development of production capacity (percentage of the design capacity, developed in each year);

ü data on the estimated sales volumes, production costs, estimated profit for the commissioned facility;

ü information about the sources of financing the investment project;

ü plan of cash receipts and payments by years.

As a rule, a bank long-term loan makes up for the lack of other sources of financing, the main of which are the company's own funds. The capital investment financing plan includes the following sources of funds:

ü own funds, including:

ü profit (accumulation fund);

ü funds from the sale of shares;

ü receipts from economic activities (net profit, accrued depreciation);

ü other own sources; borrowed funds, including:

ü loans from commercial banks;

ü funds from the issue of own bonds;

ü budgetary funds.

The long-term loan is used to pay for construction and installation work, equipment supply, development of design estimates for construction.

Repayment of borrowed funds and payment of interest to the bank on newly started construction projects are made after the objects are put into operation within the terms established by contracts. For facilities under construction at operating enterprises, loan repayments begin before these facilities are put into operation, and interest payments are usually made from the date of receipt of funds (quarterly or monthly).

The Bank controls the intended use and development of long-term loans, inspects the facilities to be lent, and makes control measurements of construction projects.

Sberbank continues cooperation with the European Bank for Reconstruction and Development (EBRD), which has allocated several tens of millions of dollars to Russia for lending to small and medium-sized businesses. Loans are provided to small enterprises with a share of state ownership and foreign capital not exceeding 49%. The loan is secured by:

ü personal property (jewelry, audio and video equipment, vehicles, etc.);

ü fixed assets;

ü goods in circulation;

ü real estate: apartment (privatized without registration), house, office, shop, workshop, garage (capital, registered with the Bureau of Technical Inventory (BTI), etc .;

ü personal guarantees;

ü guarantees of other organizations.

The loan is not intended for environmentally harmful industries, the production of tobacco, alcoholic beverages, weapons, as well as for trading in securities and gambling. Loans of two types (microcredits and small loans) are issued on different terms. The lending program for small and medium-sized businesses is based on European standards, taking into account Russian specifics, the main document for justifying the need for a loan is a business plan of an enterprise for a certain period in the future. The forecast is made according to two scenarios - conservative and progressive. If, after studying the conservative scenario, which takes into account the maximum possible losses, it can be concluded that it is advisable to provide a loan, then the loan can be issued.

The priority in lending is given to manufacturing enterprises that are active in economic activity. The bank's experts help the future borrower to correctly determine the required amount of the loan, which he will be able to repay, terms and interest rate.

It is very important to ensure the provision of liquid collateral. The EBRD methodology assumes a flexible approach to the selection of collateral. Since the clients of the small and medium-sized business lending program are small organizations, collateral can also be accepted from third parties - both citizens and enterprises. As the loan is repaid, constant communication is maintained with the company; if necessary, consultations of banking specialists are provided.

Small businesses such as shops, workshops, consumer services, and small manufacturing firms are of the greatest interest to the bank.

The specificity of small business presupposes some features of the organization of lending. The most suitable for small businesses are tranche loans, i.e. collateral is provided not for the entire loan amount, but for its individual parts - tranches. Often this is done for the purchased equipment: equipment is purchased for the first tranche of the loan, and a loan is issued against the security of equipment for the purchase of raw materials and replenishment of working capital.

The lending program for small and medium-sized businesses is well established. After issuing a loan, the bank regularly monitors the financial condition of the borrower until the last tranche is paid. The client receives free legal assistance in preparing not only documents for obtaining a loan, but also constituent documents and contracts. The term for issuing loans on average in Moscow is 2-3 weeks from the moment the borrower contacts the bank.

Rates setting can be calculated nominal (annual) and effective rates. Bank interest arises in cases when a bank is one of the subjects of credit relations. When concluding loan agreements, commercial banks independently agree with borrowers on the amount of interest rates. With the development of market principles of management, the interest rate will tend to the average ...

Collateral, while the collateral is sold only by auction. The use of RVPS is carried out when writing off the principal debt from the bank in case of its hopelessness and unreality for collection by the decision of the bank's council. 2. Analysis of credit transactions of the city branch No. 2363 of Sberbank of Russia (OJSC) 2.1 Characteristics of the City branch No. 2363 of Sberbank of Russia (OJSC) City branch No. 2363 is ...