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Ministry of Education and Science of the Russian Federation

Federal State Budgetary Educational Institution of Higher Professional Education

"Volgograd State Technical University"

Faculty of Economics and Management

Department of Economics and Enterprise Finance

EXPLANATORY NOTE

for course work (project)

in the discipline ______Money, credit, banks_____________________________________________

on the topic____Lending to legal entities by Sberbank of the Russian Federation

Student___________________________________________________________________

(Full Name)

Group________________________

Work (project) manager ________________________ _____________________

Members of the commission:

(signature and date of signing) (initials and surname)

_____________________ ____________________________

(signature and date of signing) (initials and surname)

_____________________ ____________________________

(signature and date of signing) (initials and surname)

Regulatory inspector ______________________________ _____________________________

(signature, date of signing) (initials and surname)

Volgograd 2015

Introduction........................................................ ........................................................ ..................4

1. Theoretical aspects of the process of bank lending to legal entities.................................................... ........................................................ ...............................................6

1.1 Mechanism for lending to legal entities.................................................... .........6

1.2 Managing the bank lending process....................................................7

1.3 Types of bank loans to legal entities...............................................12

1. Analysis of bank lending to legal entities...................................................14

2.1 Analysis of the legal entity lending market.................................................... .14

2.2 History of development and general characteristics of Sberbank of the Russian Federation....................................17

2.3 Analysis of lending to legal entities by Sberbank of the Russian Federation....................................19

1. Problems of bank lending to legal entities and ways to solve them.................................................... ........................................................ ....................................22

Conclusion................................................. ........................................................ ............27

Bibliography................................................ ........................................................ thirty

Introduction

The main activity of banks in terms of generating income is the lending process. Income from lending activities is the largest component of banking profits. In global practice, up to 40% of operating income from active operations of banks comes from interest on loans, and lending to legal entities remains an important area of ​​activity for banks.

Any enterprise or organization strives to develop successfully and increase its productive activities. This requires considerable material resources. That is why loans to legal entities are very important and extremely necessary. Only in a single case can it be noted when a company is progressively developing without additional borrowings. A loan helps a legal entity get back on its feet or improve things that have been shaken by the current economy. Any credit institution, especially a bank, is without a doubt considered the main partner for entrepreneurs, because it helps to expand the activities of the enterprise and improve its position in the market, so the chosen research topic is relevant.

The purpose of the work is to study the theoretical aspects of the process of lending to legal entities, conduct an analysis of bank lending to legal entities, identify problems in lending to legal entities and develop ways to solve them.

The goal determined the solution of the following tasks:

• determine the mechanism for lending to legal entities;
• study the management of the bank lending process;
• consider types of bank loans to legal entities;
• analyze the corporate lending market;
• evaluate lending to legal entities by Sberbank of the Russian Federation over the past three years;
• identify problems in bank lending to legal entities and ways to solve them.

The object of the study is bank lending to legal entities.

The subject of the study is organizational and economic relations in the process of developing and implementing bank lending to legal entities.

The theoretical basis was the scientific literature of many economists who considered the issues of lending to legal entities: rgshk6shchuk. Scientific articles in periodicals and publications in electronic media provide insight into the latest developments in the field of financial management and financial analysis in banking, and also highlight the latest changes that have occurred in the Russian banking sector.

The information base was data from the website of the Central Bank of the Russian Federation, bulletins of banking statistics, regulations of federal legislative bodies, financial statements of Sberbank of Russia for 2012-2015.

1. Theoretical aspects of the process of bank lending to legal entities

1.1 Mechanism for lending to legal entities

Modern banks have one service that is quite common today, which brings them a good profit - this is a loan to legal entities. This way, in a fairly short period of time, you can collect a very large number of clients who will be able to increase the income of the financial institution by paying off the interest on their loan.

Credit to legal entities is one of the most basic developments of modern credit organizations. They are constantly working to create various specialized programs that would be useful for entrepreneurs. A lot of legal entities today take out loans to develop their business, so such programs will always be useful. Credit to modern legal entities helps them survive in modern competition.

The bank always tries to provide credit only to those clients who have convinced it of their reliability. Otherwise, the financial institution will refuse to cooperate with a legal entity that raises certain doubts in it. The bank will provide a loan to legal entities only if it is convinced that its money will be spent on a profitable business. Otherwise, there is no point in spending it on something that will never be useful. Therefore, a person must convince the bank that his business is successful and profitable. But this is the case if the loan is taken in order to pour it into your business. In such a situation, the bank can take some of its client’s property as collateral.

When there is collateral, and it is quite valuable for both the client and the bank, then you can fully count on the bank to give you a loan. The collateral must be of interest to the bank, and it is provided as a guarantee that the loan taken by the borrower will be fully repaid over time.

Loans to legal entities without guarantors are a very real phenomenon today. In some situations, in order to obtain a loan for legal entities, the participation of a highly qualified loan specialist is necessary. Such a credit broker will help you choose the most suitable and profitable credit program in all respects. The services of this employee may be quite expensive, but it will save the client from some kind of deception and will help to understand in more detail all the conditions set by the bank that gives the loan.

In order to receive a loan to any person or legal entity, you need to provide a certain package of documents. But in each case this package of documents will be different. Documents for a loan to a legal entity may have the following order: a certificate of registration, you may also need financial statements for the last two years and for the last six months, a statement of financial results, a statement of cash flows, a statement of equity. Businesses that have been in existence for less than two years must provide all financial statements for the period of their existence and many other documents.

Not all legal entities are well versed in documentation and therefore they require an assistant when applying for a loan from a bank. Assistance with a loan to legal entities is mandatory if a large amount of money is involved. There are special credit brokers for this. They have extensive experience in this matter and therefore will help each of their clients obtain a reliable loan to invest in their business.

Loan assistance for legal entities is very popular today, because so many modern banks offer extremely confusing loan programs. In order to avoid getting into a rather unpleasant and at the same time incomprehensible situation, modern people have the opportunity to take advantage of the help of specialists.

1.2 Managing the bank lending process

1) Stages of lending to legal entities

The lending process itself begins from the day the loan is first issued. However, before and after this moment there is a whole period of significant work performed by both the lending bank and the borrower client. Modern domestic practice, when everyone needs loans, from entrepreneurs to the government, not to mention enterprises and organizations experiencing an acute solvency crisis and in need of credit support. A Russian commercial bank does not have to look for a client to whom a loan needs to be given; the client is looking for a bank from which he could get a loan.

These are the realities of the modern Russian economy, which is experiencing an acute crisis in production and finance. Commercial banks are not further exempted from another more complex stage - the stage of consideration of a specific project. The instability of the economic situation and inflation require Russian banks to take special care and experience in assessing the creditworthiness of the client, the lending object and the reliability of the collateral, the quality of the collateral and guarantees. The analytical part of this stage is an extremely important task.

In Russian commercial banks, the solution to this problem, as a rule, is assigned to the credit department (management). Some banks have special analytical units whose function is to comprehensively assess the event being financed. An opinion on the possibility of lending is given to the employee supervising the service of this client. In this case, all the preparatory work is assigned to the bank economist - he conducts preliminary negotiations, reviews the documentation submitted to the bank, prepares a written opinion on the possibility and conditions of lending for this project, issues a special order to issue a loan, collects the necessary permitting signatures on loan documents, etc. d. - in general, performs all analytical, technical and organizational work on the relevant loan project. In small banks, all this work is usually concentrated in one department.

A fairly common form of work at this preliminary stage is making decisions on lending to clients within the certain competence of bank employees. In this case, a loan project for the appropriate amount is considered and the issue of the possibility of lending is considered only by the employee who is granted such a right by the relevant orders of the bank management.

Large loans are usually reviewed by the credit committee. Before its meeting, all economic and legal issues are worked out, a final decision is made on the issue under consideration, and specific lending conditions are determined.

This is the procedure for this preparatory stage. This is followed by the stage of drawing up loan documentation. Bank employees draw up a loan agreement, issue instructions to the bank to issue a loan, and create a special dossier on the client - the borrower (loan file).

At the third stage - the stage of using the loan, control over credit operations is carried out: compliance with the credit limit (credit line), targeted use of the loan, payment of loan interest, completeness and timeliness of loan repayment. At this stage, work on the operational and traditional analysis of the client’s creditworthiness and financial results does not stop; if necessary, meetings and negotiations are held with the client, the terms and conditions of the loan are clarified.

2) Loan documentation

Loan documentation is documents drawn up by the client and the bank that accompany the loan transaction from the moment the client contacts the bank until the loan is repaid.

Loan documents prepared by the client include:

Loan application;

Feasibility study;

Loan application;

Financial report;

Cash flow report;

Internal financial reports;

Internal management reports;

Funding forecast;

Tax returns;

Business plans;

Current liabilities;

Pledge agreement (letters of guarantee, insurance policies);

Information about the pledged property.

Based on the generally accepted documentation provided by the client to obtain a loan, each bank itself determines for the borrower a package of documents that best meets the bank’s requirements.

3) Assessment of the borrower's creditworthiness

To assess the borrower’s creditworthiness, banks analyze quantitative indicators and calculate coefficients that can, to one degree or another, characterize the stability of the client’s financial condition. At the same time, each bank develops its own set of indicators, which are used to assess the financial condition of a potential borrower. The system of such indicators must meet two main criteria:

1) coefficients calculated on the basis of indicators must determine the essential (significant) features of the enterprise’s activities;

2) these coefficients should duplicate each other to the least extent possible.

4) Essence of the loan agreement

One of the most important conditions for successful entrepreneurial activity is the possibility of timely receipt of a bank loan. The relationship between the client and the bank is governed by the terms of the loan agreement.

Under a loan agreement, a bank or other credit organization (lender) undertakes to provide funds (loan) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the amount of money received and pay interest on it. A credit agreement in banking practice is also called a bank loan agreement, using the term “loan” as equivalent to the words “credit” and “loan”.

Unlike a loan agreement, a credit agreement establishes special requirements for the subjects of this relationship. Only a bank or other credit organization can act as a lender. If under a loan agreement it is possible to transfer to the borrower not only money, but also fungible things, then under a bank loan agreement it is possible to transfer only a certain amount of money.

5) Securing loans

Ensuring loan repayment as a lending principle expresses the need to protect the bank's property interests in the event of a possible violation by the borrower of its obligations. The form of repayment security refers to the form of the borrower's guaranteed obligations. All collateral obligations are in addition to the borrower's principal debt. They are drawn up with special documents that have legal force.

The Law “On Banks and Banking Activities” and the Civil Code stipulate that the fulfillment of the borrower’s main obligation may be supported by such forms of security as pledge, guarantee, surety, and other methods provided for by law or contract.

The types of collateral that can be taken into account by the creditor when making a decision on issuing a long-term loan are shown in Fig. 1.

Rice. 1 - Types of loan collateral

1.3 Types of bank loans to legal entities

Russian banks offer several loan products, among which you can choose the most optimal one, which will fully satisfy the needs of your business at a particular moment. Among them there are a variety of types of lending to legal entities, each of which has its own purpose. The most common and most popular are: investment, universal loans, lending for current activities, commercial mortgages, as well as factoring and leasing.

What makes universal loans stand out is that they do not have any specific conditions and can be used for almost any need that arises when growing a business. In order to replenish the working capital of enterprises and to purchase fixed assets, legal entities often use lending intended for current activities. In order to receive an investment loan, for example, for a new or for the development of an existing project, you will need a business plan that clearly outlines the development prospects of this enterprise.

Also, types of lending to legal entities include commercial mortgages, which, due to their conditions, are similar to the residential mortgages that are familiar to many. In such a case, the enterprise is provided with a loan secured by real estate, and not only existing real estate, but also those objects that are issued on credit can be considered as collateral for the loan.

Very often, enterprises use a service such as a bank guarantee. Thanks to it, when a business, for various reasons, cannot make payments on existing debts, the bank undertakes to repay the debt to a third party. A bank guarantee is somewhat similar to factoring, in which the bank also assumes the resulting debt and repays it to a third party. In this case, the bank collects funds without the participation of the client.

Financial leasing, which is also called leasing, has also become widespread, thanks to which a legal entity has the opportunity to receive property in installments. After all settlements have been made with the leasing company, which may include a bank, the property used becomes the property of the enterprise.

The list of types of lending to legal entities also includes the option of term lending to legal entities. It is made for a specific period to finance the emerging needs of the enterprise and differs as lending: long-term - up to 2 or more years, medium-term - up to 1-2 years and short-term - up to 1 year. The size of the loan amount will depend not only on the needs of the legal entity, but also on its solvency, bank lending history, which is influenced by existing bank deposits, payment history on previous loans, etc.

Another common type of lending is overdraft. It is the debiting of funds from the company's accounts in excess of the balance in order to promptly satisfy the urgent short-term needs of the business. Thanks to this, an overdraft allows a company to spend more funds than what is in its bank accounts. Banks provide such services for those legal entities that have already gained a positive reputation with them and whose creditworthiness they do not doubt.

1. Analysis of bank lending to legal entities

2.1 Analysis of the legal entity lending market

In modern Russian economic conditions, during the period of overcoming the crisis of the national economy, the priority task is to create a unified management mechanism that would ensure, first of all, overcoming negative phenomena in the country’s economy, and then - creating the conditions necessary for its normal functioning and development as in the field of finance, as well as in the field of intensification of production, trade, agriculture and other industries. The creation of a credit mechanism as an element of the credit system as a whole is expected to play an important role here, since it is the main instrument for regulating the economy in the hands of the state. Based on monetary and credit relations, it will make it possible to quickly concentrate huge resources in the form of temporarily free funds in the central areas of the country’s economic and social development. Proper organization of the functioning of the credit mechanism will ensure the effective redistribution of these funds between sectors of the economy.

The main instrument of the credit mechanism, capable of concentrating temporarily free funds in the central areas of economic and social development of the country, is lending to legal entities. Currently, “lending to legal entities” is primarily understood as “lending to small and medium-sized businesses.” After all, the development of small and medium-sized businesses is the key to the functioning of a market economy.

The lending market for small and medium-sized businesses in 2012, according to banking analysts, grew by 40-50% and reached $60 billion. But this market is just beginning to actively develop, so banks assess the risks of such loans very high, which explains the high interest and strict conditions for receiving money.

Banks try to protect themselves by requiring companies to be completely transparent about their work, provide collateral, and break even for a certain period. However, this market is very interesting for banks due to its high profitability - rates on such loans are at the level of 15-18% with significant amounts of the loans themselves.

The main clients of banks under lending programs for small and medium-sized businesses are trading companies engaged in wholesale and retail trade, followed by companies operating in the service market and manufacturing enterprises.

Rice. 2 - Leading banks in terms of the volume of loans issued to small and medium-sized businesses in 2013 (in thousands of $)

From Figure 2 it can be seen that the first place in terms of the volume of loans issued to small and medium-sized businesses in 2013 is occupied by Sberbank ($2,460,489 thousand), the second by Vozrozhdenie ($1,800,000 thousand), and the third by Uralsib (1,438,881). It should be noted that Sberbank occupies a leading position in all indicators, and by a huge margin.

In 2014, loans became more accessible, but they are still very far from becoming a mass product. Even state support programs for lending by commercial banks to small businesses have not greatly improved the situation on the market. Loans issued under such programs, although they provide compensation for the initial costs of obtaining money, are still quite difficult to obtain. The situation in the SME lending market in 2014 is shown in Figure 3.

Rice. 3 - Leading banks in terms of the volume of loans issued to small and medium-sized businesses in 2014 (in thousands of $)

Based on Figure 3, the following conclusions can be drawn. Firstly, it should be noted that there has been a general increase in loans issued by all banks. Thus, the top ten leaders increased the amount issued from 29,863,550 thousand dollars to 42,884,524.8 thousand dollars, i.e. by 43%.

Secondly, something should be said about the leaders in terms of growth rates. The first here was VTB 24, which increased the volume of loans from 105,459 thousand dollars in 2013 to 779,009 thousand dollars in 2014, thereby rising in the ranking of the largest banks in the small and medium-sized business market in 2013 -2014. from 11th to 5th place. The second is Rosbank, which increased the volume of loans to small and medium-sized businesses from 67,700 thousand dollars to 267,200 thousand dollars, i.e. the increase was 294%.

The practical impossibility of obtaining loans is pushing many companies to resort to alternatives and use leasing or factoring, which also actively developed in 2014. Leasing programs allow companies to purchase production assets in installments. Factoring makes it possible to completely protect yourself from non-payments of your counterparties, and the condition for signing a factoring agreement for companies is the solvency of their partners.

Thus, even a company that does not have financial support can afford factoring.

In 2015, the SME lending market will continue to develop. We should expect the emergence of more participants in this market, which means increased competition and, as a result, increased loyalty to borrowers, easing lending conditions and lowering loan rates.

2.2 History of development and general characteristics of Sberbank of the Russian Federation

Sberbank of Russia is the largest bank in the Russian Federation and the CIS. Founded in 1841, Sberbank of Russia today is a modern universal bank that meets the needs of various groups of clients in a wide range of banking services.

In 1987, as part of the perestroika reforms, the system of State Labor Savings Banks of the USSR was reorganized, and in its place the Bank of Labor Savings and Lending to the Population of the USSR was formed - the Savings Bank of the USSR, a state specialized bank for servicing the population and legal entities.

Thus began the newest stage in the history of Sberbank of Russia. Already in 1989, the first ATM was opened in the Dzerzhinsky branch of the Bank on Olympic Avenue in Moscow. In the same year, Sberbank became a member of the World Institute of Savings Banks. And after the collapse of the USSR, only Sberbank of Russia continued its activities; savings banks in the former Soviet republics either completely ceased to exist or took a secondary position in the banking system of their countries.

In 1991, the general meeting of shareholders decided to establish the Joint-Stock Commercial Savings Bank of the Russian Federation, which continued the sesquicentennial history of Russian savings banks.

Now its assets make up more than a quarter of the country's banking system (27%), and its share in bank capital is at 26% (January 1, 2013). According to The Banker magazine (July 1, 2012), Sberbank ranked 43rd in terms of fixed capital (Tier 1 capital) among the largest banks in the world.

Sberbank occupies the largest share in the deposit market and is the main creditor of the Russian economy. As of January 1, 2013, Sberbank of Russia's share in the private deposit market was 48%, and its loan portfolio included about a third of all loans issued in the country (32% of retail and 31% of corporate loans).

Sberbank of Russia has a unique branch network: it currently includes 17 territorial banks and more than 19,100 branches throughout the country. Subsidiary banks of Sberbank of Russia operate in Kazakhstan, Ukraine and Belarus. In accordance with the Development Strategy, Sberbank of Russia expanded its international presence by opening a representative office in Germany and a branch in India, as well as registering a representative office in China.

The implementation of the Development Strategy will allow the Bank to strengthen its position in the Russian banking services market and achieve financial and operational indicators corresponding to the level of high-quality universal global financial institutions.

In Fig. Figure 4 shows the existing diagram of the organizational structure of Sberbank.

Rice. 4 - Organizational structure of Sberbank.

The General Meeting of Shareholders is the highest management body of the Bank. At the General Meeting of Shareholders, decisions are made on the main issues of the Bank's activities. The list of issues falling within the competence of the General Meeting of Shareholders is determined by the federal law “On Joint Stock Companies” and the Bank’s Charter.

In accordance with the Charter, the general management of the Bank's activities is carried out by the Supervisory Board.

Sberbank of Russia, despite difficult conditions and a significantly increased load on the Bank, its employees and infrastructure, continues its activities in full, providing all types of services to regular and new clients, individuals and legal entities, large, small and medium-sized businesses operating in all sectors of the economy.

2.3 Analysis of lending to legal entities by Sberbank of the Russian Federation

Dynamics of the main items of the profit and loss statement for 2013 compared to 2012:

• net interest income decreased by 0.3%;
• net commission income increased by 10.0%;
• expenses for creating reserves for possible losses amounted to RUB 86.6 billion. against 387.3 billion rubles. for 2012;
• operating income before provisions for possible losses decreased by 11.6%;
• operating income after creating reserves for possible losses increased by 1.9 times;
• operating expenses increased by 18.3%;
• pre-tax profit from profit amounted to RUB 225.0 billion. versus RUB 39.0 billion for 2012;
• net profit amounted to 183.6 billion rubles. against 21.7 billion rubles. for 2012. - table 2.1.

The main focus of the Bank's activities in the provision of credit services in the first quarter of 2014 remained, first of all, the implementation of measures aimed at increasing the efficiency of sales of existing credit products.

Table 1 - Key performance indicators of Sberbank

Index			Change
Assets, billion rubles
Net loans, billion rubles
Customer funds, billion rubles.
Own funds, billion rubles.
Tier 1 capital adequacy ratio (Basel 1)
Total capital adequacy ratio (Basel 1)
Ratio of provision for impairment of loan portfolio to loan portfolio

In Fig. 5. Data on the dynamics of the bank's loan portfolio is presented.

As we can see, the portfolio of loans to customers increased by 13.7% in 2013 due to an increase in the volume of lending to both individuals and legal entities against the backdrop of growing demand.

31.12.2011 31.12.2012 31.12.2013

Rice. 5 - Dynamics of Sberbank's loan portfolio.

The loan portfolio of corporate clients increased by RUB 94 billion in December. up to RUB 4,766 billion Over the month, the bank provided about 640 billion rubles to Russian enterprises, which was the maximum figure over the past two years. The total volume of loans issued in 2013 exceeded 4.35 trillion rubles, while in 2012 about 4 trillion rubles were issued. The bank almost doubled the growth rate of its loan portfolio compared to the previous year: 12.2% in 2013 versus 6.7% in 2014 - Fig. 6.

31.12.2012 31.12.2013

Rice. 6 - Structure of the portfolio of loans to legal entities.

As we see from Fig. 6., in 2012, in the structure of lending to legal entities, commercial lending and specialized lending occupied approximately the same parts - 52% and 48%, respectively, and in 2013 the part of specialized lending further decreased to 44%.

In Fig. 7. The structure of the loan portfolio by industry is presented.

Rice. 7 - Structure of the loan portfolio by industry as of December 31, 2013

As we see in Fig. 7, the industry structure of the loan portfolio is quite diversified: the share of the largest industry is 16.3% of the total loan portfolio - trade.

1. Problems of bank lending to legal entities and ways to solve them

Sberbank of Russia, despite difficult conditions and a significantly increased load on the Bank, its employees and infrastructure, continues to operate in full, providing all types of services to regular and new clients, individuals and legal entities, large, small and medium-sized businesses operating in all sectors of the economy.

Difficult economic conditions necessitate changes in the Bank's credit policy. These conditions are characterized by the following factors:

• lack of liquidity in the economy, both among banks and enterprises;
• crisis of confidence in economic relations (companies, banks, individuals);
• low availability of loans and their increased cost due to increased risks (“credit compression”);
• reduction in effective demand from both individuals and legal entities;
• a significant drop in prices for both goods, raw materials and supplies, and assets (real estate, securities, enterprises);
• increased fluctuations in exchange rates of all currencies.

According to experts from Sberbank of Russia, this period will last up to one and a half to two years.

The Bank also encourages clients experiencing or anticipating financial difficulties to discuss them with us as early as possible - together it will be much easier to find a solution without bringing the situation to a critical one.

If a critical situation does arise, Sberbank of Russia will do everything to ensure that both the client and the Bank come out of it with the least losses.

Realizing the special responsibility to shareholders and depositors in this difficult time, Sberbank of the Russian Federation OJSC is introducing additional measures for effective risk management in 2015:

• changing the criteria for the sustainability of clients’ businesses in relation to activities in difficult conditions;
• strengthening loan security:
  • sufficient and timely cash flows from the borrower's operating activities;
  • operating profitability of the business;
  • pledges of liquid assets;
  • guarantees/guarantees of the state or business owners;
• increasing the level and quality of control on the part of Sberbank of the Russian Federation OJSC over the responsible behavior of owners and management by introducing additional conditions and restrictions on the activities of the borrower, including:
  • reducing the maximum debt load limit;
  • introduction of additional restrictions on the change of control over the business;
  • expanding the list of events leading to early collection of debt by the Bank;
  • a clearer definition of cross-default criteria for the client’s obligations to other creditors.

To do this, emphasize:

• to sources of repayment and their reliability;
• to the level of current liquidity of the client;
• to the level of debt burden;
• to the quality and liquidity of collateral;
• to the adequacy of financial plans and actions of borrowers in relation to dramatically changed external conditions;
• to conservative approaches in forecasting the solvency of clients;
• to monitoring loan debt for early diagnosis of potential problems among borrowers.

Incomplete representation of data in the database can be a serious problem. Due to ill-conceived data collection technology or due to its violation, data can be collected spontaneously, unsystematically, and fragmentarily. Analyzing such data can be unsafe because it is very easy to make wrong decisions based on incorrect analysis results.

Having studied the methodology for assessing the creditworthiness of legal entities in Sberbank, it can be noted that its main drawback is its focus on the financial analysis of borrowers. This does not take into account non-financial indicators, which also have a significant impact on the borrower’s creditworthiness.

Today, the problem of assessing the borrower’s creditworthiness is becoming increasingly relevant. A high percentage of the risk of loan non-repayment in Russian banks leads to a strong rise in the cost of loans. The debts of defaulters fall on the shoulders of the bank's bona fide borrowers. Some banks even refuse to issue unsecured consumer loans to reduce the risk of possible losses.

If the bank plans to roll out a large-scale program, then in order to succeed in the market in the context of constantly tightening competition and, as a result, decreasing profitability, it is necessary to look for ways to reduce operating costs and minimize risks.

Improvement of the methodology for assessing the creditworthiness of legal entities in Sberbank must be carried out in the direction of increasing the accuracy of assessing the borrower's creditworthiness by expanding the assessed indicators. Typically, loan repayment is expected to come from cash flows generated by the project for which the loan was issued or by the borrower's primary activities. The loan officer must examine both the financial and non-financial characteristics of the borrower in order to determine its financial position and identify risks that may affect these characteristics. In addition to the client's financial situation, the loan officer must consider: the quality of management; state of the industry; client's position in the industry.

EGAR Technology offers a high-tech solution EGAR Credit Administration (legal entities) to automate the decision-making process in the field of corporate lending. The implementation of the system in the practical activities of Sberbank will ensure:

• Minimizing the subjective factor in the process of making credit decisions
• Reducing operational risks through comprehensive automation of the pre-loan processing process
• Expansion of volumes and types of lending (in particular, through lending to small and medium-sized businesses)
• Quantitative assessment of credit risks

The functional diagram of the solution is shown in Fig. 8.

The analytical core of the EGAR Credit Administration system supports:

• Assessing and maintaining the history of the borrower’s creditworthiness and internal rating based on financial and management reporting, as well as questionnaires for individual entrepreneurs
• Calculation of the probability of borrower default
• Determining the reasonable amount of reserve funds for each loan

Rice. 8 - Functional diagram of the solution according to the EGAR system.

The analytical core of EGAR Credit Administration uses the mathematical apparatus of the bank's integrated credit risk management system EGAR Credit Risk.

The assessment of the creditworthiness of legal entities is carried out on the basis of quarterly financial reports for the year and additional information about the details of the borrower's business. The assessment of the creditworthiness of individual entrepreneurs can be carried out both on the basis of management reporting and on the basis of an individual’s questionnaire. In general, the assessment is divided into two stages - calculating financial indicators and the basic average annual probability of default for them, and then performing an additional expert assessment with the conclusion of an adjustment factor to the basic probability.

Based on calculated characteristics depending on the amount of the proposed loan, collateral, reliability of collateral, length of the transaction, credit margin and general portfolio parameters, a conclusion is made about the advisability of the bank lending to the borrower or providing him with alternative terms of the transaction acceptable to the lender.

Conclusion

The desire to strengthen their positions in financial markets is the reason for the strengthening of the process of self-organization of banks, which continue to pay their clients’ payment documents on time and in full today. In this situation, banks strive not only to maintain their positions in the financial market, but also to ensure the implementation of development programs that require significant capital investments financed from profits. The Bank strives to provide diverse and high-quality services to its clients, ensure the safety of funds entrusted to it, and defines its strategy in the banking services markets as increasing the volume of transactions in developed markets while simultaneously expanding the range of services provided and changing the structure of banking operations.

Thus, from the theoretical part of the study, summarizing the findings, we can summarize that the most significant and profitable segment of borrowers are legal entities. In the most general understanding, lending to legal entities is a type of active bank operations related to the provision of funds to the borrower on the terms of repayment, urgency, payment, and targeted use of funds.

When lending to legal entities, it is necessary to conduct a high-quality and complete analysis at the stage of consideration of the loan application, aimed at eliminating both legal and credit risks of the bank, for which it is necessary to comprehensively, interact with all services of the bank, check the legal capacity of the legal entity, carry out measures to identify negative information in relation to a potential borrower and, most importantly, checking the client’s solvency.

Problems have been identified related to the lack in Russian reality of a perfect methodology for assessing the creditworthiness of a borrower, and the existing ones currently do not allow us to fully judge the financial condition of a potential borrower due to the lack of a unified regulatory framework across the industry, comparative industry averages, minimum acceptable and best indicators for the industry . In addition, there are problems in the area of ​​loan portfolio management, the main of which are currently the high level of risk in loan portfolios formed by banks, associated with excessive concentration of loans. The level of risk is also negatively affected by the unresolved nature of a number of key problems of collateral legislation and the underdeveloped conditions for the functioning of credit history bureaus and credit risk insurance.

In the second part of the course work, an analysis was carried out of the organization of the process of lending to legal entities of Sberbank of Russia - the leader in the country's banking services market. In terms of its market positions, the volume of assets and capital, its financial results and the scale of infrastructure, the Bank is several times superior to its closest competitors.

Based on the results of the analysis, results were summed up that indicate the reliability of Sberbank of Russia, despite the financial crisis and unfavorable phenomena in the country.

As of January 1, 2014, Sberbank of Russia's share in the private deposit market was 48%, and its loan portfolio included about a third of all loans issued in the country (32% of retail and 31% of corporate loans).

It should be noted that there was a significant increase in the volume of consumer loans provided, by 12.1% in 2013 compared to 2012. Sberbank of Russia maintains its leadership position in this segment, occupying more than 30% of the retail lending market. Housing loans were in high demand, including mortgages and loans to young families to improve their living conditions. During the year, Sberbank issued more than 300 thousand housing loans in the amount of 291 billion rubles. Basically, personal loans are issued for the medium term, that is, for a period from 1 to 3 years, while there is a positive trend towards an increase in the share of this particular group of loans from 31.7% in 2012 to 35.7% in 2013.

The loan portfolio of corporate clients increased by RUB 94 billion in December 2013. up to RUB 4,766 billion Over the month, the bank provided about 640 billion rubles to Russian enterprises, which was the maximum figure over the past two years. The total volume of loans issued in 2013 exceeded 4.35 trillion rubles, while in 2012 about 4 trillion rubles were issued. The bank almost doubled the growth rate of its loan portfolio compared to the previous year: 12.2% in 2013 versus 6.7% in 2012.

The sectoral structure of the loan portfolio is quite diversified: the share of the largest industry is 16.3% of the total loan portfolio - trade.

In order to eliminate the identified negative trends, recommendations were developed to improve lending to legal entities, aimed primarily at improving the quality of the loan portfolio, reducing the risk of non-receipt of income and non-repayment of loans, which are covered in the third chapter of the course work.

Firstly, such measures included insurance of the liability of borrowers of legal entities and individual entrepreneurs for the timely repayment of amounts for each newly issued loan (bank loan insurance) according to the trade loan insurance model used in the practice of insurance organizations. This helps reduce the share of overdue loans in the total loan portfolio.

The second measure aimed at improving the quality of the loan portfolio is the sale of a portfolio of overdue loans to collection companies. The proposed measure will also have a positive effect, since when working with collection organizations, the bank will be able to reduce the share of overdue loans.

In general, this will help improve the quality of the loan portfolio, reduce reserves for possible losses on loans, loans and similar debt, as well as improve the bank’s financial performance.

Bibliography

1. Federal Law of the Russian Federation “On Banks and Banking Activities” dated February 3, 1996 No. 17-FZ (as amended and supplemented as of October 2, 2010 N 225-FZ).
2. Banking: Textbook. / Ed. Doctor of Economics sciences, prof. G.G. Korobova. - M.: Economist, 2012. - 751 p.
3. Banking: Textbook - 2nd ed., revised. and additional / Edited by O.I. Lavrushin. - M.: FINANCE AND STATISTICS, 2010. -672 p.
4. Zharkovskaya E.P. Banking. - 4th ed., rev. and additional - M.: Omega-L, 2012. - 452 p.
5. Zhukov E.F. Banking management. - M.: Unity-Dana, 2012. - 319 p.
6. Karpova V.E. Evdokimova G.Zh. Banking: Textbook / ed. Doctor of Economics Sciences, Prof. G.G. Korobova. - M.: Economy, 2012. - 751 p.
7. Fundamentals of banking (Banking) / Ed. Tagirbekova K.R. - M.: Publishing house. House "INFRA-M", 2007.
8. Berezina M.P. Conceptual issues of organizing credit operations //Banking. - 2013. - No. 12 - p. 6-11.
9. Bondareva Yu., Shovikov S, Khanrov R. Competition in the banking services market. Opinion of analysts of the Ministry of Aviation Administration of the Russian Federation // Banking. - 2011. - No. 1. -WITH. 9-14.
10. Beloved L.P. Implementation of a system for assessing economic efficiency in a bank. Profit centers, products, clients // Banking. - 2011. - No. 2. - pp. 13-15.
11. Voroshilova I.V., Surina I.V. On the issue of improving the mechanism for assessing the creditworthiness of individual borrowers: Materials of KubSAU. -Krasnodar, 2005.
12. Zavyalova L.V., Prusak M.A. Theoretical and methodological aspects of organizing internal control of lending to individuals // Bulletin of Omsk University. Series "Economics". 2010. - No. 2. P. 155-164.
13. Lazunsky M. Corporate project management using the example of introducing a banking automated information system // Banking technologies. - 2013. - No. 9. - pp. 26-29.
14. Odess V.I. Credits in Russia - a lever for the development of the country's economy // Conjuncture of commodity markets. Marketing and logistics. 2011. - No. 2.
15. Panova G. S. Banking risk management: world experience and practice // Scientific almanac of fundamental and applied research “Problems of managing banking and corporate risks.” - M.: Finance and Statistics. - 2012.- P. 18.
16. Proskurin V.A. Scoring method for assessing the creditworthiness of individuals // Business and banks. - 2011. - No. 45. - P. 39-42.
17. Rabinovich A.R., Yudina G.A. Managing credit risks of individuals on the example of the East Siberian Bank of Sberbank of Russia // In the world of scientific discoveries. - 2011. - No. 3. - pp. 148-151.
18. Rovbel R.L. Methodology for assessing the concentration of bank credit services // Modeling and forecasting in management: methods and technologies. Proceedings of the II international-practical. conf. Orel: ORAGS, 2012.
19. Rossinskaya G.M. Differentiation of consumer behavior and economic development: problems of interrelation // Finance and credit. - 2013. - No. 45.
20. Telesh N.A., Spitsky A.V. Modern methods of promoting bank credit products.//Bank lending”. - 2010. - No. 6. - P. 137-140.
21. Tkach D.A. Scoring score for assessing credit risk. Making a decision on a loan application based on scoring systems // Russian Entrepreneurship. - 2011. - No. 6. - P.103-107.
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ALL-RUSSIAN CORRESPONDENCE

FINANCIAL AND ECONOMIC INSTITUTE

Faculty Financial and credit Department Money, credit and securities

"I affirm"

Representative of the department “___” ___________ 2001

Assignment for the student’s final qualifying work

Komleva Elena Nikolaevna

1. Work theme: Organization of lending to legal entities by commercial banks (based on information and analytical materials).
2. Deadline for student submission of completed work June 2, 2001.
3. Calendar plan

Name of sections of the WRC	Due date	Note
Introduction
Chapter 1. Fundamentals of organizing lending 1.1. The essence of credit, lending principles 1.2. Classification of credit operations 1.3. Credit policy of a commercial bank 1.4. Methods of providing bank loans
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 - the legal basis for loans 2.4. Securing loans
Chapter 3. Credit risks 3.1. Essence and classification of credit risks 3.2. Credit risk calculation
Conclusion
Bibliography
Applications

Student __________________________________

Supervisor _____________________________

CHAPTER 2. ORGANIZATION OF LENDING TO LEGAL ENTITIES BY COMMERCIAL BANKS

CHAPTER 3. CREDIT RISKS

INTRODUCTION

The term “Commercial bank” arose in the early stages of the development of banking, when banks primarily served trade, barter transactions and payments. The main clientele were merchants. Banks provided loans for transportation, storage and other operations related to the exchange of goods. With the development of industrial production, short-term lending operations for the production cycle arose: loans to replenish working capital, create reserves of raw materials and finished products, pay wages, etc. The terms of loans gradually increased, part of bank resources began to be used for investments in fixed capital and securities. Recently, significant changes have occurred in the development of the Russian banking system. The leading banks were identified, the main areas of banking specialization were formed, and the division of the client base between financial institutions was completed.

Russia's transition to a market economy, increasing the efficiency of its functioning, and 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 to expand reproduction based on the achievements of scientific and technological progress.

Without credit support, it is impossible to ensure the rapid and civilized development of farms, enterprises, and the introduction of other types of business activities 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, varying duration of the turnover of funds in the economy, the close interweaving of cash and non-cash turnover, the separation of funds within economic entities. In the process of circulation, funds are released in some economic links, while others have a 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, an additional need for funds arises. 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 creating and using income and profits. Credit can have an active impact on the volume and structure of the money supply, payment turnover and the velocity of money circulation. Thanks to credit, there is a faster process of capitalization of profits, and, consequently, concentration of production.

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

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

All this made it possible to fully and in detail examine the lending process as a whole and 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 behavior of one and the other party in market conditions throughout the interaction were determined. When studying all 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 operations. The second chapter provides an analysis of the process of lending by commercial banks to legal entities: the documents required to provide 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 credit, lending principles.

The concept of credit operations.

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

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

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

Conditions for granting credit.

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

Repayment is determined by the nature of the loan. It means that 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. This is where the lending principle of urgency comes from. Loans are subject to repayment within certain periods in accordance with the obligations assumed by the borrower. These terms follow from the actual terms of turnover of funds from the credited enterprises. 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 effective use of the loan received and serves as a guarantee of the bank’s obligations to enterprises, organizations and citizens whose funds it uses as a credit resource.

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

Interest for using a loan is set in such a way that the amount of interest received from the borrower covers the bank’s costs of raising funds necessary to provide the loan (with the addition of a 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 event being financed, the rates of competing banks and other factors and are determined differentially in each loan agreement.

Interest rates for a loan can be fixed or floating, which is also provided for in the loan agreement. Fixed interest rates remain the same for the entire term of the loan. Floating rates fluctuate depending on money market conditions, changes in the amount of interest on deposits, the prevailing 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 period with mandatory notification to the borrower.

In case of late payment of interest for using a loan due to lack of funds in the borrower’s current account, the bank may charge a penalty for each day of late 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 fee for his obligations to use the loan, accrued on the unused portion of the loan.

Securing loans issued by a bank reduces the risk of losses, since if this principle is observed, the return of borrowed funds to the bank is guaranteed. The amount and types of collateral depend on the financial situation 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 at OJSC Commercial Bank “Verkhnevolzhsky”.

1.2 Classification of credit operations.

Credit transactions

Active operations Passive operations

1. Customer lending 6. Customer deposits

2. Lending to other banks 7. Bank deposits

3. Deposits in other banks 8. Bank loans including

4. Funds in the reserve correspondent account in the central one

at the central bank

5. Funds in correspondent accounts in other countries

So, lending operations are lending to customers and other banks (active) and bank loans (passive), deposit operations are deposits in other banks, funds in 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 credit (loan) as a certain amount of money that is issued (received), returned and paid. Loan operations form the basis of the bank's active activities in the deployment of its resource base. They bring banks a significant part 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 conducting active credit operations.

There are various criteria for classifying deposits. Depending on the depositor, deposits are usually divided into deposits of individuals and legal entities. Depending on the period and procedure for withdrawal, deposits are divided 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 must be the result of reproduction in increasing sizes. This determines the economic role of credit and serves as one of the most important conditions for the bank to profit from lending operations.

Classification of lending objects.

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

Long-term loans are used to finance such objects as:

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

The object of bank lending can be private or collective. It becomes private if it is isolated and separated from other loans. For example, a bank can credit its client separately for needs related only to the accumulation of containers, raw materials or finished products. There are cases when, in the general composition of loans, there are loans provided not in general for raw material reserves, but in connection with the accumulation of a certain type of it.

The direct opposite of a private object is a collective object, when a loan is issued against many 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, an object expresses not only an 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 credit transaction is concluded. In some cases, the overall need for a loan may also 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 the lending bank, such loans are associated with great risk; they often become difficult (problem) loans, which are not repaid to the bank for a long time, worsening its loan portfolio, and necessitate strengthening the analysis of the borrower’s creditworthiness.

Classification of lending entities.

The subject of lending from the position of classical banking is legal or natural persons who are capable and have material or other guarantees to carry out economic, including credit transactions.

The borrower can be any property entity that inspires confidence in the bank, has certain material and legal guarantees, and is willing 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, firm up to the state. Before the transition of our economy to a market economy, enterprises and organizations were divided mainly by industry: industrial, agricultural, construction enterprises, trading, procurement, supply and sales organizations. This criterion was gradually abandoned and the following classification of lending entities is currently accepted:

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

The division of bank loans according to the subjects of their receipt gives rise to another concept of classification in the lending system - 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 individual case may vary - the procedure for issuing and repaying loans may be different. In accordance with the industry focus, industrial, trade and interbank loans can be particularly highlighted. In the United States, the loan qualification system still emphasizes agricultural loans.

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

Types of loans differ not only according to the subjects of their receipt, but also according to other criteria. These include:

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

According to the connection between credit and the movement of capital, it can be divided into two types: loan of money and loan of capital. Lending money is usually associated with consumer or other purposes, when the loan does not bring an increase in the social product, but is spent and repaid from already created savings. A capital loan, on the contrary, does not imply the consumption of the product, but its increase; in this case, the borrower is obliged to use the loan in such a way as to obtain a new value with its help, and not only repay the loan, but also pay the loan interest as part of the profit additionally received as a result of the use of bank funds. A capital loan is the most typical 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 funds not in the sphere of production, as is usually accepted from the position 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 peculiarity of modern practice is that commodity producers themselves are often deprived of the opportunity to apply to a bank for a loan, since the fee for its use turns out to be an unbearable burden for them.

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

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

Modern credit business is predominantly short-term in nature. From the perspective of many market economy countries, short-term loans are loans whose term does not exceed one year. These are mainly loans serving the circulation of working capital and the current needs of clients. Traditionally, in industrialized countries, the following types of short-term lending to enterprises are used: credit in the form of an overdraft (debit accounts), lines of credit (including seasonal and revolving), loans in the form of accounting and collateral of bills, etc.

Long-term loans include loans with terms exceeding 6 years (in some countries, for example, the USA, long-term loans are longer 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 whose term of use ranges from 1 to 6 years. The scope of their application coincides with servicing needs through long-term credit.

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 real estate loans (mortgage loans), securities loans, revolving loans (overdraft, bank credit cards), and consumer loans.

From the perspective of global practice, the criterion for the length of customer lending terms does not have a uniform standard for all. In Soviet practice, for example, some loans provided for a period of 1 to 3 years were declared short-term loans.

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

Based on the criterion of loan repayment, we can distinguish bank loans with market interest rates, increased and preferential. Market price a loan is its price that is formed on 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 rise. Loans with a higher interest rate, as a rule, arise due to the high risk of lending to the client, violation of the terms of the loan, forecast of an increase in the cost of credit resources, etc. Loans provided on preferential interest terms are an element of a differentiated approach to lending. They are provided to shareholders when refinancing centralized loans of the issuing bank (provided that the price is lower than their market price), bank employees (in special cases, banks also provide them with interest-free loans).

Securing a loan 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 be directly secured, indirectly secured or unsecured. In international practice, loans are divided into secured, unsecured and partially secured.

In global banking practice, loan collateral has always been treated ambiguously. In the centralized banking system, loans that were secured in the form of inventory items were considered the most reliable. In Western practice there was no such categorical approach. On the contrary, the experience of Western countries has shown that the presence of material security does not provide confidence in the timely repayment of bank loans. It’s one thing to have inventory that turns over slowly and has no solid market; another thing is to easily sell assets, the borrower’s property as a whole. It is no coincidence that the uncertainty in inventories as collateral for a loan has allowed a number of Western economists to conclude that loans with a similar quality of collateral are the most unreliable, while a loan not secured by inventories (they are not in inventories, they are all in turnover), on the contrary, is the most reliable.

If, for example, a loan was issued against stocks of finished products, which, as it turns out, are not sold, then such a loan, although secured by inventory items, can hardly be called reliable. On the contrary, repayment of the loan in this case is very difficult, and therefore it should rather be classified as unreliable loans.

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

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

In many ways, this also applies to individuals. Banks, when providing their blank loans to individuals, evaluate their property, take into account the presence of their own home, constant work over many years, and timely repayment of loans in the past.

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

Bank loans can be divided depending on the currency used in the lending process, depending on whether the loan debt is limited or not, constantly renewable (revolving) and interruptible loans, etc.

A serious reason for identifying a special group of loans is their size. In global and domestic banking practice, so-called “large” loans are regulated. The category of large loans in Russia includes loans, the size of which to one borrower (or 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 is issued as a written memorandum that guides all Bank employees. The content and structure of this document varies from bank to bank, but the main points are usually similar in documents of this kind.

First, the overall policy goal is formulated, such as providing reliable and cost-effective credit. The degree of risk must correspond to the usual rate of return on loans, taking into account the cost of credit resources and administrative costs of the bank. In addition, a breakdown is made of how the bank is going to achieve its stated goal. To do this, the types of loans acceptable to the bank, loans from which the bank recommends to abstain, the preferred range of borrowers, undesirable borrowers for the bank in various categories, the geography of the bank’s lending work, limiting the size of loans for various categories of borrowers, the bank’s policy in the field of credit risk management are determined. , audits and control.

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 risk, the degree of which in the Russian Federation is growing 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 smaller, despite the fact that in some cases such operations can be profitable for the bank. The degree of risk must correspond to the usual rate of return on loans, taking into account the cost of credit resources and administrative costs of the bank. When determining credit policy, the credit strategy should be oriented toward 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 based on the need to achieve the goal of asset growth and improving their quality. In this case, 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 policies. A credit strategy may consist of conducting 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 monitoring 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 practical provision of loans to lower levels of management and formulates the general principles and restrictions of credit policy. Improving lending practices requires developing an optimal lending organization for the bank. For these purposes, banks that have qualified and professional banking employees in their staff pay attention to finding the best options for methods for calculating the creditworthiness of borrowers and lending rules. The lending organization should ensure the unconditional repayment of loans, the targeted nature of their use, stimulation of growth in the volume of production that meets the needs of society, and an increase in the share of credit investments allocated to investment projects in promising highly efficient industries. General guidelines and recommendations should enable proactive work by practitioners involved in the selection of specific loan projects and development of the terms of loan agreements. In this case, 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 policies of the state and the current economic situation in a given region.

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

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INTRODUCTION

Chapter 1: THEORETICAL FOUNDATIONS OF BANK LENDING

1.2.2 Loan collateral

1.2.4 Credit monitoring and the bank’s procedures for dealing with problem loans

Chapter 2: ACTIVITIES OF CHELINDBANK JSCB IN THE FIELD OF LENDING TO LEGAL ENTITIES

2.1 General characteristics of the bank

2.2 Procedure for providing funds to clients

2.2.1 List of required documents for granting a loan and their analysis

2.2.2 Determining the lending limit for one borrower

2.2.3 Approval of the lending limit for one Borrower

2.2.4 Review of loan applications

2.2.5 Preparation and conclusion of contracts

2.2.6 Providing credit

2.2.7 Loan repayment and interest payment

2.2.8 Bank control over the loan and financial condition of the borrower

2.2.9 Loan collection

2.3 Loan portfolio analysis

Chapter 3: WAYS TO IMPROVE THE MECHANISM OF BANK LENDING TO LEGAL ENTITIES

3.1 Ways to improve the elements of the mechanism of bank lending to legal entities

3.2 Promising models for the organization and functioning of the mechanism for lending to trade organizations in Russian commercial banks

CONCLUSION

LIST OF REFERENCES USED

INTRODUCTION

The economic reform carried out in the country has opened a new stage and tasks in the development of banking. Solving these problems is possible only on the basis of a practical study of the functioning of Russian and foreign banks and the introduction of the most progressive, rational forms and methods of work in practice.

Lending to enterprises refers to traditional types of banking services. It is no coincidence that a bank is called a credit institution. The largest part of banks' assets is still placed in lending operations. In general, the existing lending system is an updated system, in which, however, both old and new forms of lending still exist. In a certain sense, the current credit system is a transitional system, where the remnants of the old scheme are preserved, and new elements are introduced that are more consistent with market relations.

Carrying out banking operations with a wide clientele is an important feature of modern banks with a developed credit system. Credit operations serve as an important income-generating factor in the activities of Russian banks. In my opinion, lending to legal entities is in wide demand. For this reason, the topic of the thesis is very relevant.

The purpose of the thesis is to, based on an analysis of the organization of lending to legal entities, develop ways to improve the mechanism of lending to legal entities in order to ensure repayment of the loan.

The subject of the study is the organization of the functioning of the mechanism for lending to legal entities.

The object of study of this work is the Soviet branch of Chelindbank

Objectives of this work:

Definition of the concept of credit and the essence of lending principles;

Analysis of the practical application of the legislative framework regulating the field of lending to the population;

Study of the organization of the credit process at JSCB Chelindbank

The objectives of the thesis determined its structure. To do this, in paragraph 1.1. First of all, general issues are considered. The essence of credit, its types, methods and forms.

Further in paragraph 1.2. the organization of lending to legal entities in commercial organizations has been studied.

The general characteristics of JSCB Chelindbank are set out in paragraph 2.1.

In paragraph 2.2. the procedure for providing funds to clients of Chelindbank is being considered; reflects the entire process of granting a loan from the client’s application to the bank until he receives the loan, as well as the procedure for repaying the loan and paying interest.

Section 2.3 analyzes the loan portfolio.

The third chapter outlines ways to improve the lending mechanism.

In order to present this topic in detail, in addition to my own practical skills, I used articles and materials that reflect the essence of this problem at the modern level.

The thesis contains a number of applications that allow you to visually present the lending process and analyze the bank’s lending work. The material is illustrated with drawings and tables. At the end of the work there is a list of references used.

CHAPTER 1. THEORETICAL FOUNDATIONS OF BANK LENDING

1.1 Concept of credit. Types, forms and methods of loans provided to legal entities

Credit is in many ways a condition and prerequisite for the development of a modern economy and an integral element of economic growth. It is used by both large associations and enterprises and small trade, manufacturing and other enterprises.

The term credit comes from the Latin word “creditum” (loan, debt; trust; he believes) and means a type of economic transaction, an agreement between legal entities or individuals for a loan or advance, i.e. The lender provides the borrower with money or, in some cases, property for a certain period of time. The principal characteristics of a loan are urgency, repayment and payment.

Credit, therefore, is a form of movement of loan capital, i.e. monetary capital provided on loan. Credit transforms money capital into loan capital and expresses the relationship between lender and borrower.

Commercial banks provide their clients - legal entities with various types of loans, which can be classified according to various criteria.

Depending on the purpose or direction, loans are distinguished:

Industrial,

Trade,

Agricultural,

Investment.

Depending on the urgency of the loan:

Short-term loans are provided to compensate for the temporary shortage of the borrower's own working capital. Up to a year. The interest rate on these loans is inversely proportional to the loan repayment period. Short-term loans serve the circulation sector.

Medium-term loans are provided for a period of one to three years for production and commercial purposes.

Long-term loans are used for investment purposes. They service the movement of fixed assets, characterized by large volumes of transferred credit resources. They are used for lending for reconstruction, technical re-equipment, and new construction at enterprises in all fields of activity. Long-term loans have received particular development in capital construction and the fuel and energy complex. The average repayment period is from 3 to 5 years.

On-call loans that must be repaid within a fixed period after receiving formal notice from the lender (the repayment period is not initially specified).

By size they are distinguished:

Large loans,

Average loans

Small loans.

By provision:

Unsecured (blank) loans,

Secured: which, in turn, according to the nature of the security are divided into collateral, guaranteed and insured.

According to the method of issuance, bank loans are divided into:

Compensatory loans, where the loan is sent to the borrower’s current account to reimburse the borrower for his own funds invested either in inventory or expenses.

Payment loans, where a bank loan is used directly to pay for payment documents presented to the borrower for payment for credited activities.

Bank loans are classified according to repayment methods:

Loans repayable in installments (in parts, shares),

Loans that are repaid in one lump sum on a specific date.

Depending on the fee for using the loan:

Paid loan,

Free credit,

Dear loan,

Cheap loan.

This division is based on the interest rate established for using the loan.

The forms of providing a loan to a borrower may be different. The most common ones in practice are:

A term loan is a common form of credit. The bank transfers the loan amount to the borrower's current account. Upon expiration of the term, the loan is repaid (i.e., the borrower transfers the appropriate amount of money from his current account to the bank).

Contract credit. A special loan account is opened for the borrower at the bank - a current account. Current account is a single account on which all bank transactions with clients are recorded. The current account reflects, on the one hand, bank loans and all payments from the account on behalf of the client, and on the other hand, funds received by the bank from clients in the form of revenue, deposits, loan repayments, etc. The current account is a combination of a loan account with a current and can have a debit and a credit balance. Contract credit is carried out as follows. A special loan account (concurrent account) is opened at the bank for the borrower, into which his proceeds are credited and from which payments for received settlement documents are made; If the business entity’s funds are not enough to pay off its obligations, then the bank lends it within the amount established by the loan agreement. The amount of the loan received is determined as the difference between receipts and payments on this account. Loan payments are made within the period established by the loan agreement.

On-call loan is a short-term loan that is repaid on demand. Issued, as a rule, backed by securities and goods. On-call credit is carried out as follows. The bank opens a special current account for the borrower on the security of inventory items or securities. Within the limits of the secured loan, the bank pays all bills of the business entity. The loan is repaid upon the bank's first request using funds received to the borrower's account or by selling the collateral. The on-call loan is usually repaid by the borrower with a warning of 2-7 days. The interest rate on this loan is lower than on term loans. From the point of view of repayment period and quality of collateral, an on-call loan is considered the most liquid item of a bank's asset after cash.

Company credit is a traditional form of lending in which the supplier (seller) provides credit to the buyer in the form of deferred payment. A type of corporate loan is an advance from the buyer, which is paid to the supplier (seller) after signing the agreement (contract).

Bill of exchange credit - The Bank provides a bill of exchange (discount) loan to the bill holder by purchasing (discounting) a bill of exchange before the maturity date. The owner of the bill receives from the bank the amount specified in the bill, minus the discount rate, commission payments and other expenses.

Factoring is a type of trade and commission operation associated with lending working capital. Factoring is the collection of the buyer's receivables and is a specific type of short-term lending and intermediary activity. Factoring provides services to the seller. Its main goal is to receive funds immediately or within the period specified in the agreement.

Forfeiting is a form of export lending by a bank or financial company by purchasing, without recourse to the seller, bills and other debt claims for foreign trade transactions. Forging is used for the supply of machinery and equipment for large sums with long-term installment plans (up to 7 years)

Open account loan. The essence of loans (or settlements) on an open account is that the seller ships the goods to the buyer and sends documents of title to him, debiting the amount of debt to the account opened in the name of the buyer. Within the terms specified in the contract, the buyer repays his debt on the open account.

An overdraft is a form of short-term loan, the provision of which is carried out by the bank writing off funds from the client's account in excess of the balance in his account. As a result of such an operation, a negative balance is formed, i.e. debit balance - the client's debt to the bank. The bank and the client enter into an agreement between themselves, which establishes the maximum overdraft amount, the terms of the loan, the procedure for repaying it, and the amount of interest on the loan.

Lending methods

A lending method can be defined as a set of techniques by which banks issue and repay loans.

There are three such methods:

1) method of lending based on turnover;

2) balance credit method;

3) reverse - balance method.

When lending by turnover, the loan follows the movement and turnover of the loaned object. The loan advances the borrower's costs until his resources are released. The loan size increases as the objective need for the loan increases and is repaid as this need decreases. This method ensures continuous, synchronous movement of credit as demand decreases or increases; it is a continuously renewable process.

When lending by balance, the loan is interconnected with the balance of inventory and costs that caused the need for a loan. Most often, balance lending, as a rule, narrower, covers a smaller range of lending objects, mediates one of the objects, while turnover lending is associated with the movement of not a separate, private, but an aggregate lending object.

In practice, lending by turnover and by balance can be combined; a turnover-balance method is formed, when a loan at the first stage is issued as the need for it arises, and at the second stage it is repaid within strictly defined terms, which may not coincide with the volume of released resources. At the first stage, the loan is issued at the initial stage of turnover of inventory items and costs; at the second stage, it is repaid on the basis of the balance of the client’s urgent obligations to the bank.

The organizational movement of the loan (its issuance and repayment) is reflected in the client’s loan accounts, which the bank opens for him. A loan account is an account that reflects the client’s debt (debt) to the bank for loans received, the issuance and repayment of loans. All loan accounts are characterized by their general design: the issuance of a loan takes place on their debit, repayment - on the loan, the client's debt to the bank is always on the left side, the debit side of the loan account.

Table 1 Loan account

For the purpose of opening, loan accounts can be deposit-loan, when the client receives the right, upon exhaustion of his own funds deposited with the bank, to receive a loan in a certain amount. Most often, such loan accounts can be used by the population, accumulating their savings in the accounts and having the opportunity, if necessary, to use a bank loan. It turns from a deposit account into a loan account if the balance on it becomes a debit account.

Loan accounts may be opened solely for the purpose of spending the loan currency. These are a kind of accounts with a credit turnover, with a decreasing debit balance, a one-time loan received for the purpose of its subsequent use and with gradual repayment of the loan.

1.2 Organization of the process of lending to legal entities

1.2.1 Procedure for registration and issuance of a loan

Lending can be divided into several stages, at each of which the characteristics of the loan, methods of its issuance and repayment are specified:

Review of the loan application and interview with the client;

Studying the client's creditworthiness;

Preparation and conclusion of a loan agreement, issuance of a loan;

Formation of a reserve for possible loan losses;

Bank control over compliance with the terms of the agreement and loan repayment (loan support);

Bank's work with problem loans.

Review of the loan application and interview with the client

A client applying to a bank for a loan must submit an application (loan application) in any form, which indicates:

The purpose of the loan, with a brief description of the enterprise and the possible economic effect as a result of using the loan;

Amount of credit;

Term of use;

Prospective collateral;

An acceptable interest rate for the company.

The bank requires that the loan application be accompanied by the required documents and financial statements that justify the loan request and explain the reasons for applying to the bank. These documents are a necessary part of the application. Their thorough analysis is carried out at subsequent stages, after a bank representative conducts a preliminary interview with the applicant and makes a conclusion about the prospects of the transaction.

The package of accompanying documents submitted to the bank along with the application includes the following documents:

Feasibility study of the need for a loan with calculations of planned costs and expected revenues from product sales (feasibility study);

Financial report, including a balance sheet and profit and loss account, annual and as of the latest reporting dates with marks from the State Tax Inspectorate on their acceptance. The balance sheet shows the structure of the company's assets, liabilities and capital. The income statement provides detailed information about the company's income and expenses, net profit, its distribution;

A statement of cash flows based on a comparison of a company's balance sheets on two dates to determine changes in various items and movements in funds. The report gives a picture of the use of resources, the timing of the release of funds and the formation of cash flow deficits;

Internal financial reports, characterizing in more detail the financial position of the company, changes in its need for resources during the year;

Internal management reports. Balance matching is time consuming. The bank may require operational accounting data contained in notes and reports prepared for the company's management. These documents relate to operations and investments, changes in accounts receivable and payable, sales, inventory levels;

A financing forecast containing estimates of future income, expenses, production costs, accounts receivable, inventory turnover, cash requirements, and capital investments. There are two types of forecast: estimated balance and cash budget. The first includes a forecast version of balance sheet accounts and a profit and loss account for a future period, the second predicts the receipt and expenditure of cash;

Business plans. Many loan applications involve financing start-up businesses that do not yet have financial statements and other documentation. In this case, a detailed business plan is presented, which should contain information about the goals of the project, methods of conducting operations;

Documents certifying ownership of property, real estate, certified by a notary;

Obligations to ensure timely repayment of the loan (guarantees, guarantees, insurance policies, securities);

Certificates, acts of tax authorities, pension funds and extra-budgetary funds to assess possible fines and the state of accounting.

For borrower clients who have current accounts in other banks, in addition to the above list, it is necessary to submit notarized: charter, registration certificate, memorandum of incorporation, minutes of the founders’ meeting, cards with sample signatures of account holders and a seal imprint.

The loan application is submitted to the appropriate loan officer and must be reviewed by him within one to two days for acceptance or refusal. The application review procedure is different for regular and new clients, for clients who enjoy the bank’s trust and those who do not have it, those with experience in business activities, and for new, newly started organizations. The assignment of potential borrowers to one group or another depends on the available information about the client, the objective and reasonable care of the bank in selecting the client. Issuing a loan without preliminary verification is not allowed, regardless of the importance of business bodies, the powers of officials, interests and the expected effect (income).

Since the bank operates mainly with borrowed capital, a significant part of which can be claimed by the owners (depositors) in a short time, when considering an application for a loan, the bank must take into account the prospect of repaying 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 not repaying 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 a bank carries out credit operations.

If, during the preliminary examination, the bank does not receive a satisfactory answer to the key questions associated with the loan, the application should be rejected outright. In this case, it is necessary to explain to the applicant the reasons why the loan cannot be provided. Neither the presence of solid collateral nor any other positive factors will be able to prevent a crisis situation if the loan is not fundamentally justified.

After considering the application and before conducting negotiations with the borrower, the responsible bank employee familiarizes himself in advance with the reference, legal and financial documents presented to him, confirming and characterizing:

Legal status and competence, powers of governing bodies;

The purpose and purpose of the loan, the reality of its execution;

Sources of repayment;

Guarantee methods;

Having debts to other creditors.

The interview allows the borrower to personally justify the need for a loan, and the bank employee to assess the nature and sincerity of his intentions. If the client is not convincing enough to indicate the goal and the reality of achieving it, or doubts arise about his integrity in fulfilling the terms of the agreement, these circumstances should be taken into account as a strong negative factor when considering the loan application.

Considering a loan application on its merits, a bank may refuse a loan for the following reasons:

If the goals and means of achieving it specified in the loan application diverge from the basic principles of the bank’s credit policy;

If the share of the borrower-owner in the total capital of his enterprise is insignificant;

If you are not sure about the feasibility of issuing a loan;

If there are doubts about the individuals involved in the loan transaction.

In this case, the application is filed in a separate file for applications that have not received approval. Conducting a banking business and business ethics require a polite, reasoned refusal. If the bank, based on the results of reviewing the loan application and the preliminary interview, decides to continue working with the client, then the next stage begins - the stage of determining the borrower’s creditworthiness.

Preparation and conclusion of a loan agreement

The decision on the advisability of issuing a loan is made either by an authorized officer or by the relevant management body of the bank. For the rational organization of credit work, the decision of the board determines the powers of the head of the credit department and the deputy chairman of the board for loans. Maximum amounts are established within which loans can be issued. In some banks, the loan officer only develops the terms of the loan and prepares all the materials, while the right of approval belongs to the senior administration and the credit committee, consisting of directors and experienced loan officers. In other banks, the loan officer can make a decision on all loan applications that he prepares, with subsequent approval by the loan committee. The Credit Committee is a special body authorized to consider or make decisions on most issues related to lending, and only in special cases bring them to the board for consideration. The credit committee includes representatives of the board, credit, legal, foreign exchange and commercial departments, as well as the bank's chief accountant.

The package of documents for consideration by the credit committee includes:

Credit expert's opinion,

Borrower's questionnaire

Conclusion of the security service,

Conclusion of the legal service.

If necessary, the package of documents can be supplemented with other documents that are essential when the credit committee makes a decision on issuing a loan. The decision of the credit committee on the issue of issuing a loan to a client is documented in an approval protocol, which is a confidential document.

If the credit committee makes a decision to refuse to issue a loan, the credit expert:

Notifies the client by sending him a reasoned refusal signed by the head of the credit department;

Makes a note about the refusal to issue a loan in the Application Registration Book;

Returns, at the request of the client, the documents submitted by him for consideration of the issue of issuing a loan, leaving copies of these documents in the credit file;

Places in the file of refusals to issue loans: a loan application, a package of documents, a protocol of the initial interview, a copy of the refusal letter to the client, a credit expert’s conclusion, a security service conclusion, a legal service conclusion, an approval protocol by the credit committee, an internal memo on the decision made by a higher-level credit committee.

In case of a positive decision to issue a loan, the credit expert:

Communicates the decision of the credit committee to the client in writing (letter, fax, etc.);

Makes a note about the positive decision in the Application Registration Book;

Prepares credit file.

After permission to provide a loan is received, the bank begins to develop a loan agreement. This stage is called loan structuring. During the structuring process, the bank determines the main characteristics of the loan: type of loan, amount, term, method of repayment, collateral, loan price, other conditions.

Purpose of the loan. The first question the bank is interested in is the purpose for which the loan is taken. The purpose of the loan serves as an important indicator of the degree of risk. When issuing a loan to a company, the bank takes into account the frequency of bankruptcies in a given industry and is cautious in relation to enterprises operating in unstable industries. When issuing a loan to a joint stock company, the bank must ensure that the loan is taken to fulfill the purposes specified in the company's charter. The purpose also determines the form of the loan.

Amount of credit. The bank must check the validity of the application in relation to the loan amount. It is important from the very beginning to correctly determine the required loan amount, otherwise the bank will inevitably be faced with a request to increase the loan when a crisis situation occurs. The danger is that the bank will be faced with an unpleasant alternative: provide additional credit or lose the money that has already been issued to the borrower. Therefore, the bank, having received the client’s calculations, must itself assess the required loan amount, making the necessary adjustments.

Loan repayment. When issuing a loan, the source of its repayment must be clearly defined. There are two main sources: from income or from the sale of assets. The bank must check whether the conditions proposed by the client correspond to its real capabilities. The creditworthiness of an enterprise primarily depends on the size and regularity of profit. As for the sale of assets (real estate, securities) as a method of repaying a loan, the main danger is that the proceeds from their sale may be significantly less than necessary to repay the debt.

Loan term. The longer the loan term, the higher the risk, the greater the likelihood that unforeseen difficulties will arise and the client will not be able to repay the debt in accordance with the agreement. A commercial bank, based on the nature of the funds raised, must limit its lending activities in the field of medium- and long-term operations in order to ensure the necessary balance sheet liquidity and satisfy the requirements of depositors.

Security. An important element of a loan transaction is what assets the borrower will be able to pledge as collateral, who owns the collateral, the location of the collateral, storage costs, and how the property offered as collateral is valued. The decision to make a loan should always be based on the merits of the project being financed rather than on the attractiveness of the collateral. Without collateral, a loan can only be issued in cases where the borrower is highly reliable.

Interest rate. The rate is determined during the negotiation process and is influenced by the supply and demand for credit on the loan capital market. The rate also varies depending on the risk inherent in the loan, its size and maturity, the state of the borrower's deposit account and collateral. In addition, rates are influenced by habits and traditions, competition between banks, the maximum interest rate established by law, as well as the assessment by bankers and borrowers of the prospects for economic development and a number of other points. Interest rates for using a loan, the procedure, forms and terms of their payment are provided for in the loan agreement. The interest rate for a loan can be revised by the bank during the term of the loan agreement when the discount rate of the Central Bank of the Russian Federation changes, as well as when the level of rates on the credit market changes. Changes in the interest rate are formalized by an additional agreement to the loan agreement. Changing the rate unilaterally is possible only if the clause is included in the loan agreement: “The Bank has the right to unilaterally increase the amount of the loan fee in the event of an increase in interest rates of the Central Bank of the Russian Federation or an increase in the cost of attracted resources.”

Interest is accrued on the debt arising at the time of use of the loan until the date of repayment of this debt and is paid, as a rule, monthly or within the terms specified in the loan agreement, but at least once a quarter. In case of overdue debt, the borrower pays interest on the unpaid debt on time at the increased rate provided for in the loan agreement. Funds received from the borrower are primarily used to pay interest (including overdue ones). During the negotiation process, the positions of the parties come closer and they come to a compromise. After reaching agreement on the main issues of the transaction, a document is prepared summarizing the terms of the loan (loan agreement).

Loan documentation is extremely important, since the absence of any materials or their incorrect execution can lead to large losses in the event of non-repayment of the loan and other dishonest actions of the borrower. The bank must keep the following documents in the credit file:

Conclusion of a credit officer with a visa from the head of the credit department or his dissenting opinion;

An extract from the minutes of the meeting of the credit committee;

All previously listed documents for issuing a loan, with the exception of constituent documents, which are stored in the operational department;

Loan agreement;

Pledge agreement or other types of loan repayment security (guarantee, guarantee, insurance policy);

Certificate of assessment of the pledged property;

Certificates of opinion from the legal service and the bank's security service;

Analysis by the bank of the borrower’s activities for the past period;

Orders to the operations department to open a loan account and issue a loan, etc.

A loan agreement is a detailed document signed by both parties to a loan transaction and containing a detailed statement of all conditions. Main sections of the loan agreement:

General provisions. The following are indicated here: the name of the contracting parties; subject of the agreement, type of loan, its amount, term, purpose, interest rate; conditions for ensuring the fulfillment of loan obligations; the procedure for issuing and repaying a loan, as well as the procedure for calculating and paying interest on the loan;

Rights and obligations of the borrower;

Rights and obligations of the bank. The rights and obligations of the borrower and lender arise from the current legislation and are also determined by the characteristics of each credit transaction, the situation on the credit market, and the borrower’s creditworthiness;

Responsibility of the parties;

Settlement of disputes;

Contract time;

Legal addresses.

1.2.2 Loan collateral

The form of ensuring loan repayment should be understood as a specific source of repayment of the existing debt, legal registration of the creditor’s right to use it, and organization of bank control over the sufficiency and acceptability of this source.

The standard types of loan collateral accepted by the bank are:

Bank guarantee;

Surety for legal entities;

Pledge of movable and immovable property;

Assignment of claims (cession) and transfer of ownership.

Credit risk insurance

When registering security, an opinion from the bank's legal service is required.

The amount of loan security must fully cover the amount of the principal debt, interest for the entire period of using the loan and possible costs of selling the collateral, taking into account a possible decrease in the market price of the collateral.

If we are talking about a guarantee or surety, the expiration of the guarantee (guarantee) must be three or six months later than the loan repayment period established in the agreement.

Bank guarantee

By virtue of a bank guarantee, a bank, other credit institution or insurance organization (guarantor) gives, at the borrower’s request, a written obligation to pay the borrower’s creditor (beneficiary) in accordance with the terms of the obligation given by the guarantor, a sum of money upon submission by the beneficiary of a written demand for its payment.

When accepting guarantees, the Department of Finance and Lending, together with the Department of Interbranch and Interbank Settlements and the Department of Legal Affairs, recommends the following procedure.

A package of guarantor documents is being considered, including:

Original letter of guarantee addressed to the bank;

Guarantor's balances for the last two years;

Charter, Memorandum of Association, guarantor license (copies);

A notarized card of samples of signatures and seals of the guarantor;

Economic standards of the guarantor bank at the beginning of the month of applying for a loan;

Based on the documents listed above, the solvency of the guarantor is analyzed.

In the case of a positive assessment of the guarantor’s solvency, in an oral (telephone) conversation with the guarantor’s management, it is advisable to find out the following:

How well does the guarantor know the borrower, his capabilities, reliability; how and for what, the loan funds will be spent, what are the sources of their repayment;

Why doesn’t the guarantor lend to the borrower himself?

The amount of commission for the guarantee, terms and form of payment.

The guarantor's liability arises if the borrower fails to fulfill its obligations to pay interest or principal upon expiration of the loan agreement.

The guarantor is notified in writing of the fact of non-payment. Within the period stipulated by the bank guarantee agreement, the guarantor bank is presented with payment requests for payment without acceptance of interest and/or principal on the loan, accompanied by documents confirming the borrower’s debt under the loan agreement. The originals of these documents are sent to the guarantor, copies are placed in the borrower’s credit file.

If the guarantor fails to fulfill its obligations within 10 days, the Finance and Lending Department, together with the bank’s legal service, prepares and submits a claim to the guarantor.

If a negative response is received from the guarantor or there is no response from it within one month from the date of filing the claim, the Department of Finance and Lending, together with the Legal Department of the bank, prepares a statement of claim to the arbitration court.

Surety

Under a guarantee agreement, the guarantor undertakes to be responsible to the borrower's bank for the latter's fulfillment of its obligations in whole or in part.

The source of security for the guarantee is the guarantor's own funds.

Guarantors can be enterprises of any form of ownership - joint-stock companies, limited liability partnerships, state-owned enterprises, any financially stable enterprise. It is preferable if the guarantor is a bank client.

The analysis of the financial condition of the guarantor - a legal entity, is carried out similarly to the analysis of the financial situation of the borrower, and the procedure for concluding a guarantee agreement is similar to the procedure for concluding a bank guarantee agreement.

To ensure the execution of the guarantee agreement, the guarantor is obliged to submit to the bank an order for the direct debit of funds from his accounts with a note from the servicing bank.

It must be borne in mind that when the terms of the loan agreement change, corresponding changes must be made to the guarantee agreement.

By virtue of the pledge, the bank, under the obligation secured by the pledge, has the right, in the event of failure by the borrower to fulfill this obligation, to receive satisfaction from the value of the pledged property preferentially before other creditors of the borrower, taking into account the exceptions established by law.

The mortgagor can be either the borrower or another organization that voluntarily pledged its property to the bank. However, with the consent of the owner - the relevant property management committee, the right of a mortgagor can also be used by state enterprises and budgetary organizations that own fixed assets with the right of full economic management or operational management.

If the pledgor is a joint-stock company and the value of the pledged property is from 25 to 50% of the book value of the company's assets, the decision on the pledge must be unanimously adopted by the board of directors (supervisory board) of the company or submitted to the decision of the general meeting of shareholders. If the value of the property exceeds 50% of the book value of the company's assets, the decision must be made by the general meeting of shareholders with a three-quarters majority vote of shareholders - owners of voting shares present at the meeting. The value of property is determined by the board of directors (supervisory board) of the company.

The assessment of the property or valuables pledged should be based on the market value of the collateral, taking into account the possibility of its quick sale. In all cases, except those expressly stated in these instructions, the assessment of the collateral is carried out with the involvement of an independent appraiser who has the appropriate license.

The accepted collateral is subject to periodic inspections and revaluation when its market value changes.

The sale of pledged property is carried out on the basis of a decision of the judicial authorities or on the basis of a notarized agreement of the parties.

Credit risk insurance

The borrower company enters into an insurance agreement with the insurance company, which stipulates that in case of failure to repay the loan within the established period, the insurer will pay 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 use of the loan.

1.2.3 Assessment of the borrower's creditworthiness and solvency

One of the most important stages in organizing the lending process is assessing the client’s creditworthiness and solvency. The viability of a bank often depends on correct assessment. An incorrect assessment can lead to non-repayment of the loan, which in turn can impair the bank's liquidity and, ultimately, lead to bankruptcy of the credit institution. Therefore, banks attach great importance to the development of a modern methodological basis for assessing creditworthiness, testing the qualifications of credit workers, as well as improving the system for monitoring and assessing credit risks.

The client's solvency is his ability and ability to repay all types of obligations and debts in a timely manner.

Creditworthiness characterizes only the ability of an enterprise to repay loan debt and interest on it.

In banking practice, when considering an application for a loan, both of these concepts exist in close relationship. After all, without an analysis of solvency, there is a danger of factors appearing in the future that will directly affect the client’s creditworthiness. At the same time, the client’s creditworthiness may be much higher than his solvency, since repayment of the loan is possible from funds received from the sale of the pledged property, as well as from the funds of the guarantor (guarantor).

The result of the evaluation of the loan application should be:

Formulation of conclusions about the borrower’s creditworthiness;

Determining the type and characteristics of a loan product that most closely correspond to the general direction of development of the bank’s business with a given client and the characteristics of this client.

The assessment of loan applications is usually based on the use of a comprehensive rating system for assessing loan applications, which is carried out in accordance with current methods for determining the credit risk group of loan products (i.e., by assigning points according to pre-adopted criteria). In this case, a brief client dossier is filled out in the prescribed form.

At the same time, the process of assessing the quality of an application should not be reduced solely to its analysis according to the specified rating classification system (i.e., to calculating the risk group), since such a classification cannot take into account all the factors influencing the final assessment of a specific loan application. In addition, focusing on a purely quantitative method of analysis often leads to overly general conclusions that ignore the characteristics inherent in a particular client or product, and also do not take into account the factors influencing the risk group. For example, given the same risk level of borrowers, the turnover on their accounts, indicators of their financial condition and their profitability for the bank (i.e. factors that must be taken into account when deciding whether to grant a loan) can vary greatly.

Assessing a client's creditworthiness is usually based on an analysis of the following criteria:

Quality of company management (level of management);

The nature of the transaction being financed;

The bank's experience with this particular client (credit history);

The state of the industry and region, the competitiveness of the client, the position of a particular client in the specified industry;

Client's financial situation;

Possibility for the client to provide property for use as other security.

Management must be sufficiently competent and experienced to set realistic financial goals and objectives.

Experience of the bank with the client (the nature of the relationship with the client). First of all, the loan officer must evaluate the strength of the bank's relationship with the client and its history. Factors that need to be analyzed when assessing the nature of the bank's relationship with the client include:

The duration of the relationship between the borrower and the bank for lending, the provision by the bank to the client of other products that have credit risks, for settlement and cash services and for other types of banking services (products);

Quantitative parameters of the bank’s operations with this client for all types of products (amounts and terms of loans, guarantees, etc., amounts of account turnover, amounts of deposits, etc.);

Credit history.

Analysis of the external environment (regional and industry factors) is an important aspect of the bank's risk forecast for each requested loan.

Having assessed the environmental factors related to the loan application in which the borrower operates, the level of management and the competitiveness of products, works, and services provided by the client, the credit inspector begins to analyze the financial statements.

A detailed comprehensive financial analysis of the borrower (cash flow, solvency, liquidity, ratio of own and borrowed funds) and the lending object is carried out on the basis of the documentation available to the credit inspector. In this case, the inspector must use documents provided by the borrower himself, obtained from other sources, as well as documents already available at the bank and previously provided by the borrower (for previous loans and when receiving other services).

The main sources of financial information for analysis are:

Balance sheet of the enterprise (form No. 1);

Report on financial results (form No. 2);

Cash flow report (form No. 4);

Appendix to the balance sheet (form No. 5).

It is mandatory to study the financial condition of the borrower over time. To do this, it is necessary to obtain the borrower's financial statements for at least the last 3 quarters (with the exception of enterprises with foreign investment).

It is advisable to carry out a comprehensive analysis of the borrower’s financial condition in the following sequence:

Analysis of the structure of the borrower's assets and liabilities;

Analysis of the borrower's cash flows;

Analysis of the financial stability of the borrower;

Analysis of the borrower's performance.

Analysis of the structure of assets and liabilities of the borrower

It is advisable to group all active and passive items on the borrower’s balance sheet according to the degree of their compliance with certain criteria. Thus, the borrower’s assets can be grouped based on their participation in the production process (current and non-current assets), as well as by the level of their liquidity. Liabilities are usually grouped by their sources (equity and borrowed capital), as well as by their degree of maturity.

The current and non-current assets of the borrower usually include balance sheet items indicated in sections I and II of the balance sheet. The borrower's own sources include items contained in section IV of the balance sheet, as well as lines 640, 650, 660; to the attracted capital, respectively, articles V and VI of sections of the balance sheet, with the exception of lines 640, 650,660.

The relative size of various groups of assets and liabilities depends on which industry the enterprise belongs to. Thus, for manufacturing enterprises (enterprises of industry, transport, communications, etc.), the share of non-current assets is usually 40-60% of the total assets, and, as a rule, the same is the share of their own sources of funds. For trading (and other non-production) companies, the share of current assets, on the contrary, is usually 70-95%, and the same is the share of attracted sources of funds.

a) debt to the budget and other obligatory payments (lines 625, 626 of the balance sheet);

b) short-term borrowed funds (line 610 of the balance sheet);

c) debt to creditors (lines 621,622,627, 628 of the balance sheet);

d) other short-term debt (lines 623,624,630 of the balance sheet);

e) long-term debt (line 510 of the balance sheet).

The borrower's assets are grouped accordingly according to the speed of their conversion into cash to fulfill the borrower's current obligations (according to the degree of liquidity):

a) highly liquid assets - cash balances of all types (line 260 of the balance sheet);

b) assets of medium liquidity - accounts receivable for up to a year (line 240), short-term and long-term financial investments (terms 250 and 140 of the balance sheet);

c) low liquidity assets - low liquidity working capital - inventories and expenses of all types (line 210), accounts receivable with a maturity period of more than 12 months (line 230), other working capital (lines 220 and 270) and other low liquidity assets - fixed assets (line 120 of the balance sheet), construction in progress (line 130).

Various groups of assets can be converted into cash and used to pay off debts within a certain time: highly liquid assets - 1-7 days, medium liquid ones - 8-60 days, low liquid assets - more than 60 days.

After the appropriate grouping of balance sheet items, it is necessary to assess the dynamics of the relative changes in various groups of assets and liabilities over the last few quarters: whether there has been a change in the specific weight of any of the balance sheet sections or groups of items by more than 10%. If such changes occur, it is necessary to find out what caused it.

Particular attention should be paid to changing the structure of working capital, i.e. whether there has been an increase in accounts receivable, whether the level of raw material reserves is sufficient for the operation of the enterprise, whether there has been an overstocking of finished product warehouses.

Borrower cash flow analysis

Analysis of the size of the borrower's cash flows allows us to determine the sufficiency or excess of various types of assets and liabilities, establish the level of activity of the enterprise and determine whether it has enough cash to repay bank loans and interest on them.

To analyze cash flows, the following are used: data from Form No. 2 and Form No. 4 of periodic financial statements, transcripts of the borrower’s turnover on current (settlement) accounts and bank statements on the specified client accounts.

At the first stage of the analysis, the credit inspector needs to determine the average monthly amount of sales revenue for the last three full calendar months, which is reflected on line 010 of Form No. 2.

The proceeds from the sale of the borrower consist both of cash receipts to his bank accounts, and of offsets and other amounts not accompanied by cash flows that the enterprise actually has and which it can use to repay the loans granted to it. Therefore, an important indicator is the amount of actual cash receipts to the client’s current and settlement accounts in Russian banks.

Data on cash receipts to the borrower's accounts can be obtained either on the basis of a set of statements from the client's accounts, or according to Form No. 4 of the financial statements (cash flow report).

The borrower's turnover in Form No. 4 is determined by summing lines 30, 50 and 90, which fairly fully reflects the regular receipts to the client's accounts.

After determining the total amount of cash receipts to the borrower's accounts, it is necessary to find out their seasonality and regularity. Seasonality of cash receipts means a change in the total amount of funds coming to the client’s account in a particular quarter; regularity means a corresponding change in the flow of cash receipts within a quarter. Such an analysis allows, firstly, to identify seasonal patterns in the borrower’s activities (if any), and secondly, to get an idea of ​​how well its financial and economic activities are, and, in addition, to understand the main operating cycles of the enterprise.

Along with determining the borrower's turnover for previous periods, correct forecasting of cash receipts to the company's accounts in the future is of great importance. After all, it is from these funds that the loan debt will be repaid. Because of this, the credit officer needs to draw up a schedule of the largest future receipts to the borrower’s accounts and determine the likelihood of their implementation. Based on these data, he must make a conclusion whether the company will have sufficient funds to repay the loan.

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The mechanism for lending to legal entities and individuals by a commercial bank…………………………………………………………………………………………………..

Methodology for assessing the creditworthiness of a potential borrower by a commercial bank……………………………………………………………….

Assessing the effectiveness of various methods of providing credit…….

Initial data for completing section No. 1 of the course work………..

Sample control (test) questions……………………………...

Bibliography…………………………………………………………..

In section of the course work No. 1 “Assessing the creditworthiness of a potential borrower by a commercial bank and the effectiveness of methods for providing loans,” it is necessary to assess the creditworthiness of a potential borrower by a commercial bank in order to obtain a long-term loan to satisfy temporary financial difficulties, as well as evaluate the effectiveness of various methods of providing loans.

Mechanism for lending to legal entities and individuals by a commercial bank

The organization of financial and credit services to 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 pace of economic development of the country as a whole depends on the efficiency and uninterrupted functioning of the credit and financial mechanism. At the same time, the evolution of the credit system and credit business is fully determined by the economic situation in the country, the dominant forms and mechanism of management. Each stage of the historical and economic development of the national economy corresponds to its own type of organization of the credit business, its own structure of the credit system, meeting the corresponding needs for credit and financial services of individual parts of the economy.

The changes taking place in the Russian economy imply significant changes in the relationship between commercial banks and business entities. The high riskiness of banking activities is mainly associated with the conditions and performance of its clients. An analysis of the structure of assets of the Russian banking system indicates that more than a third of them are accounted for by the loan portfolio. The bank's lending operations are leading among others both in terms of profitability and the scale of placement of funds.

In the current economic conditions, Russian commercial banks are forced to work in extraordinary circumstances. They found themselves at the center of many contradictory, crisis-ridden and difficult-to-predict processes occurring in the economy, politics and social sphere. The crisis of non-payments increases the risk of non-repayment of the loan by the client to the bank. Therefore, at the moment, methods for assessing the quality of potential borrowers are of particular importance. The starting point in assessing the capabilities of a potential borrower who wants to receive a loan is the bank’s determination of the borrower’s ability to repay the principal amount of the loan within the specified time and pay interest for using it.

The lending mechanism presupposes a specific method of providing a loan, the choice of which depends on the characteristics of the borrower’s production and commercial cycle, the uniformity of revenue from sales, credit history, as well as the nature of the borrower’s need for borrowed funds (temporary or permanent). Thus, trading enterprises traditionally use a significant share of borrowed funds in their turnover; the speed of capital turnover and the uniformity of the receipt of trading proceeds allow them to borrow funds without violating 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 manner by crediting funds to the settlement (current) the borrower's account, including when providing a loan to pay for payment documents. Individuals can receive a loan both non-cash (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 on a non-cash basis.

Methods of providing a loan:

· one-time deposit of funds or one-time cash withdrawal (to an individual);

· opening a credit line, i.e. conclusion of an agreement (agreement) on the maximum loan amount that the borrower will be able to use within a specified period and subject to certain conditions of the agreement. Opening a credit line should also be understood as concluding an agreement to provide 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 with a loan by paying payment documents as needed or in separate tranches. Repayment of the loan under the credit line can occur both within certain periods based on the client’s urgent obligations, and as funds arrive in the borrower’s account;

· lending by the bank to the settlement (current, correspondent) account of a bank client in the event of insufficient or absent funds on it and payment of settlement documents received in the name of the client. Such a loan is called an overdraft;

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

Return (repayment) of the loan and payment of interest on it can be made by debiting funds from the borrower’s current account according to his payment order, as well as debiting funds in the established order of priority 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 insufficient funds in the borrower's current account, the bank first 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 orders, as well as by postal order, cash deposit to the bank's cash desk. Repayment of loans received by borrowers who are bank employees and interest on these loans can be made through deductions from the amounts of wages due to them.

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

If the borrower does not pay the due amount within the time period established by the agreement, his debt to repay the principal debt or pay interest is transferred to the account of overdue principal debt or interest.

Information support for credit transactions The issuance of a loan is preceded by a lot of preparatory work by the bank, during which the borrower’s creditworthiness is studied, the lending parameters are determined - the amount, terms, loan fee, and the lending mode is selected. The bank must use all sources of information available to it about the potential borrower. An interview is conducted with a potential borrower, and 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 archives. The form of maintaining a credit history is not regulated.

Credit history is the documents submitted by the borrower (account statements and (or) other documentary evidence by the borrower of the fact that he has attracted bank loans and confirmation of his fulfillment of the terms of the loan transaction. A conscientious credit history indicates high-quality debt servicing (no late payments of principal or interest payments over five calendar days).

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

One of the main ways to avoid loan default is through careful and qualified selection of potential borrowers. The main means of such selection is an economic analysis of the client’s activities from the perspective of his creditworthiness.

The main part of the operations of commercial banks and enterprises is related to the provision of credits (loans), settlements and deposit operations. An important issue in this case is the determination of fees for attracted or allocated resources.

Borrower is a recipient of a loan or a loan who assumes an obligation to guarantee the return of funds received and payment of the loan provided.

Creditworthiness- this is the financial condition of the enterprise - a potential borrower, which gives confidence in the effective use of borrowed funds, the ability and willingness of the borrower to repay the loan in accordance with the terms of the loan agreement.

Global and domestic banking practice has made it possible to identify criteria for assessing credit risk and client creditworthiness:

· character of the client;

· ability to borrow funds;

· ability to earn money to pay off debt (financial capabilities);

· capital;

· loan security;

· the conditions under which the credit transaction is carried out;

· control (legislative basis for the borrower’s activities, compliance of the nature of the loan with the standards of the bank and supervisory authorities).

The character of the client is understood as his reputation as a legal entity, the degree of responsibility for repaying the debt, the clarity of his understanding of the purpose of the loan, and the compliance of this purpose with the bank’s credit policy.

The ability to borrow funds means that the client has the right to apply for a loan, sign a loan agreement or negotiate, and the legal capacity of the borrower - an individual. The ability to earn funds to repay debt in the course of current activities is determined by the liquidity of the balance sheet, the profitability of the borrower’s activities, and its cash flows.

For such a criterion of a client's creditworthiness as capital, two aspects of assessment are most important: capital adequacy (analyzed on the basis of minimum capital requirements and financial leverage ratios); the degree of investment of equity in the transaction being financed (indicates the distribution of risk between the bank and the borrower).

Loan collateral refers to the value of the borrower's assets and a specific secondary source of debt repayment (collateral, guarantee, surety, insurance) provided for in the loan agreement. If the ratio of the value of assets and debt obligations is important for repaying a loan from a bank in the event of the borrower being declared bankrupt, then the quality of a specific secondary source guarantees that the borrower will fulfill its obligations on time in the event of financial difficulties.

The last criterion is control, i.e. the legislative basis for the borrower’s activities, compliance of the nature of the loan with the standards of the bank and supervisory authorities.

A client applying to a bank for a loan must submit an application containing initial data about the required loan:

· loan size

· for how long

· expected collateral.

The application must be accompanied by documents and financial statements that justify the request for a loan and explain the reasons for applying to the bank. These documents are a necessary part of the application. Their thorough analysis is carried out at subsequent stages, after a bank representative conducts a preliminary interview with the borrower and makes a conclusion about the prospects of the transaction.

In large banks in many countries, the package of accompanying documents provided to the bank along with the application includes the following documents:

· notarized copies of the constituent documents of the borrower’s company;

· financial statement, including balance sheet and profit and loss account for the last three years;

· cash flow statement;

· internal financial reports (characterize in more detail the financial position of the borrower, changes in its need for resources throughout the year, quarterly or monthly)

· internal operational accounting data;

· financing forecast, which contains estimates of future sales, expenses, production costs, accounts receivable, inventory turnover, cash requirements, capital investments, etc.;

· tax returns;

· investment business - plan. Many loan applications involve financing start-up businesses that do not yet have financial statements and other documentation. In this case, the borrowing company provides the bank with a detailed business plan, which should contain information about the goals of the project and methods for its implementation.

The application is submitted to the appropriate loan officer, who, after consideration, conducts a preliminary conversation with the future borrower - the owner or representative of the company's management. Such meetings allow the credit inspector to find out not only the important details of the loan transaction, but also to draw up a psychological portrait of a possible borrower, evaluate the professional preparedness of the company’s management, the realism of their assessments of the situation and prospects for the development of the enterprise. During the conversation, the loan officer does not need to find out all aspects of the work of the borrower company; he must concentrate on key issues of interest to the lender bank.

To determine the economic feasibility, loan amount, loan fee and loan terms, the following information is provided (broken down by year of the planned period of implementation of the investment project):

· on the amount and structure of capital investments (cost of construction and installation work, cost of equipment);

· production capacity development schedule (percentage of the design capacity developed in each year);

· data on expected sales volumes, production costs, expected profits for the introduced object;

· information about the sources of financing of the investment project;

· Plan of cash receipts and payments by year.

After issuing a loan, the bank monitors the intended use of the loan, the financial condition of the borrower and the timely and full receipt of loan payments.

To exercise control, the bank uses the rights specified in the loan agreement:

· - require from the borrower all necessary primary, accounting and reporting documents confirming the direction of use of the loan;

· send their specialists to the location of the borrower to check his financial and economic activities or the availability of appropriate loan collateral (collateralized property and proper conditions for its maintenance).

If the borrower violates the terms of the loan agreement or circumstances arise that increase the level of credit risk, the bank has the right:

· demand changes to the terms of the loan agreement;

· limit or completely stop providing credit to the borrower;

· present to the borrower (or his guarantor), in the event of overdue debt, a requirement to return the corresponding amounts to the bank and/or make direct debits from the accounts of the borrower (or guarantor).

If there is a need for early collection of the loan amount due to the borrower’s failure to comply with the terms of the loan agreement, the bank sets a specific repayment period for the loan and notifies the borrower about this. Within the period specified by the bank, the borrower must transfer funds to repay the loan.

If payments to repay the loan are not received by the deadline specified in the loan agreement and payment schedule, the amount of the outstanding debt on the next business day is transferred to the account of overdue loans with increased interest charged for using the loan.

Simultaneously with the assignment of the outstanding debt to the account of overdue loans, the bank issues a payment request to the borrower to write off this debt and the interest due for using the loan.

The bank may provide a deferment of loan repayment. To consider deferring repayment, the borrower must submit a reasoned statement to the bank, as a rule, 15 days before the loan is due to be repaid.

The decision to defer loan repayment is made by the credit committee in the manner prescribed for issuing the loan, and is formalized by an additional agreement to the loan agreement with a corresponding extension of guarantees.

Interest rates on loans are set in accordance with their minimum level approved by the bank's credit committee.

Interest is accrued on the amount of actual debt on the loan, usually quarterly (monthly) during the payment period at the rate of 365 days.

The borrower is obliged to repay the debt on interest no later than the specified period by transferring it by payment order to the bank account. The specific repayment date must be specified in the loan agreement.

In case of untimely transfer of interest, the bank charges a penalty on the amount of unpaid interest, has the right to terminate the loan agreement and submit a collection order to the borrower's account.

The bank can write off the amount of accrued interest from the borrower’s current account if it is maintained at the bank, which must be provided for in the loan agreement.

If the amount contributed by the borrower is not sufficient to repay the principal debt, accrued interest on the loan and the penalty (fine, penalty), then the penalty (fine, penalty) and interest for using the loan are paid off first, and the remaining amount is used to repay the principal debt.

Interest on the final payment is paid by the borrower no later than the established date for repayment of the last principal amount under this loan agreement.

METHODOLOGY FOR ASSESSING THE CREDITABILITY OF A POTENTIAL BORROWER BY A COMMERCIAL BANK (Task No. 1, Task No. 3)

There are many methods for assessing the quality of borrowers - methods for analyzing the client’s financial situation and his reliability in terms of timely loan repayment. The currently used and recommended methods for assessing the borrower's creditworthiness are based mainly on an analysis of his activities in the previous period and are focused mainly on solving calculation problems. Despite the importance of such assessments, they cannot exhaustively characterize the creditworthiness of a potential borrower in the forecast.

Methods for assessing the creditworthiness of a bank client are:

· management assessment;

· assessment of the client’s financial stability;

· cash flow analysis;

· collection of information about the client;

· monitoring the client's work by going on site.

The specifics of assessing the creditworthiness of legal entities and individuals, large, medium and small clients determine the combination of assessment methods used.

Let's consider assessing the creditworthiness of a legal entity using the example of the methodology of the Joint-Stock Commercial Savings Bank of the Russian Federation (Sberbank of Russia). Sberbank of Russia establishes 3 classes of borrowers:

· first-class - the lending of which is beyond doubt;

· second class - lending requires a balanced approach;

· third class - lending is associated with increased risk.

Task No. 1. To determine the borrower's creditworthiness, an assessment of his financial condition is carried out (quantitative analysis). To assess the financial condition of the Borrower, three groups of assessment indicators are used:

· liquidity ratios;

· debt-to-equity ratio;

· turnover and profitability indicators.

Liquidity ratios characterize the enterprise's provision of working capital to conduct business activities and timely repay urgent obligations. The following liquidity ratios are usually calculated:

1) absolute liquidity ratio(K1) characterizes the ability to instantly repay debt obligations and is defined as the ratio of cash and highly liquid short-term securities to the most urgent obligations of the enterprise in the form of short-term bank loans, short-term loans and various accounts payable.

2) current ratio or intermediate coverage ratio(K2) characterizes the ability of an enterprise to quickly release liquid assets from economic circulation and pay off debt obligations and is defined as the ratio of cash, short-term financial investments and settlements to short-term liabilities.

3) overall coverage ratio(K3) is a general indicator of the solvency of an enterprise, the calculation of which includes all current assets in the numerator, and short-term liabilities in the denominator.

Debt to equity ratio(K4) is one of the characteristics of the financial stability of an enterprise and is defined as the ratio of equity (less losses) to the total amount of liabilities for borrowed funds.

As an indicator of the third group, you can use return on investment in the enterprise(K5), which is defined as the ratio of profit before tax to the balance sheet total.

Evaluation of the results of calculations of five coefficients consists of assigning a class to the borrower for each of these indicators based on a comparison of the obtained values ​​with the established normative ones. Next, the sum of points for these indicators is determined in accordance with their weights. The noted characteristics are presented in table. 3.

The formula for calculating the sum of points S is:

S = 0.11 Class K1 + 0.05 Class K2 + 0.42 Class K3 + 0.21 Class K4 +

0.21 · Class K5.

Table 1

Scale for determining the class and weight of coefficients

S = 1 or 1.05 - the borrower can be classified as the first class of creditworthiness;

S more than 1.05, but less than 2.42 - corresponds to the second class;

S equal to or greater than 2.42 - corresponds to the third class.

Next, the preliminary rating determined in this way is adjusted taking into account other indicators of the third group and the qualitative assessment of the borrower. If these factors have a negative impact, the rating may be reduced by one class.

Banks build their credit relationships with enterprises of each creditworthiness class in different ways. Thus, commercial banks can open a line of credit to first-class borrowers in terms of creditworthiness, lend on a checking account, and issue one-time blank (unsecured) loans, establishing in all cases a lower interest rate than for all other borrowers.

Lending to second-class borrowers is carried out by banks in the usual manner, i.e. in the presence of appropriate forms of security obligations (guarantees, pledge, sureties, insurance policy). The interest rate accordingly depends on the type of collateral.

Providing loans to 3rd class clients is associated with serious risk for the bank. In most cases, banks try not to issue loans to such clients. If the bank decides to issue a loan to a 3rd class client, then the size of the loan provided should not exceed the size of the organization’s authorized capital. The interest rate for the loan is set at a high level.

If the loan was issued to the client earlier, before his financial situation deteriorated, the bank must analyze the causes and consequences of the current situation in order to protect the company from bankruptcy, and if this is not possible, stop further lending.

Based on the obtained creditworthiness class from Table 1, the interest rate at which the client will be issued a loan is selected. Rate i1 corresponds to the 1st credit class, i2 to the second and i3 to the third. In what follows, the rate chosen according to the class will be denoted by i.

Task No. 3. The volume of turnover of a potential borrower on accounts with Sberbank of Russia at the end of the period:

where O is the volume of monthly turnover on settlement and current foreign currency accounts in Sberbank of Russia,

K – amount of principal debt on the loan,

P – the amount of obligations to pay interest for the entire period of use of credit resources,

T – loan term.

ASSESSMENT OF THE EFFECTIVENESS OF VARIOUS METHODS OF PROVIDING LOANS (Task No. 2)

The transition to a market economy is accompanied by the emergence of certain types of activities that have a fundamentally new character for the enterprise. These include the task of investing money effectively. In a centrally planned economy, such a task practically did not exist at the level of an ordinary enterprise. There were several reasons.

First of all, neither legal entities nor individuals officially, as a rule, had large available funds. In particular, the financial resources of the enterprise were strictly limited by direct or indirect methods. Thus, cash was limited by setting the State Bank the maximum amount of cash that could be in the cash register at the end of the working day. The amount of funds in the current account was limited by indirect methods, mainly by withdrawing funds from the budget at the end of the reporting period, as well as by introducing rather strict standards for own working capital.

Another reason was that practically the only way to use free money was to place it at interest in a savings bank. The stability of economic development, which turned out to be, as they now say, stagnant, guaranteed in this case not only the safety of funds, but also their slight growth.

The situation has changed dramatically in recent years. At least six main points can be identified. Firstly, many restrictions were abolished, in particular, the rationing of working capital, which automatically eliminated one of the main regulators of the amount of financial resources at the enterprise.

Secondly, the procedure for calculating financial results and distributing profits has radically changed. With the introduction of new forms of ownership, it became impossible to withdraw profits from the budget by a willful method, as was done in relation to state-owned enterprises, thanks to which enterprises had free funds.

Thirdly, as mentioned above, there has been a significant revaluation of the role of financial resources, i.e. there was a need for competent management of them, and in various aspects - by type, by purpose, in time, etc.

Fourthly, fundamentally new types of financial resources have appeared, in particular, the role of cash equivalents has increased, in the management of which the time aspect is of decisive importance.

Fifth, there have been fundamental changes in investment policy options. The transition to the market opens up new opportunities for the application of capital: investments in commercial banks, participation in various types of risky enterprises and projects, acquisition of securities, real estate, etc. By placing capital in one of the selected projects, the financial manager plans not only to return the invested amount over time, but also to obtain the desired economic effect.

Sixth, in the conditions of financial instability characteristic of the transition period, manifested in persistently high rates of inflation and a decrease in production volumes, it has become unprofitable to keep your money even in a state bank. Many enterprises have learned from their own experience a simple truth: in conditions of inflation, monetary resources, like any other type of asset, must be circulated and, if possible, faster.

Any financial transaction carried out by a commercial bank is accompanied by two processes: accumulation and discounting.

Extension– the process of increasing the amount of initial capital by adding accrued interest.

Discounting– a process inverse to accrual, in which the amount expected to be received (returned) in the future and the rate are specified.

The process of formation of accumulated value is depicted in Fig. 1.

Rice. 1 The process of creating accumulated value

Thus, money acquires another characteristic - time-value of money. This parameter can be considered in two aspects. The first aspect relates to the depreciation of cash over time. The second aspect is related to the circulation of capital (money).

Let us define the basic terms that are used in the course work.

Amount of accrued interest(I) is the absolute value of income from lending money.

Interest varies according to the basis for its calculation. If the basis for calculating interest remains constant throughout the term, then it is simple interest. If the base for calculating interest is constantly changing by adding previously accrued interest to it, then this is compound interest.

Interest also varies depending on when it is calculated. If interest is calculated at the end of each accrual interval (period), then this is a decursive method of calculating interest. If interest is accrued at the beginning of each interval (period), then this is an anticipatory method.

Interest rate(i) is the ratio of the amount of accrued interest paid (received) per unit of time to the original amount of debt. Interest is calculated on this type of rate using the decursive method.

Interest rates vary according to the principle of changeability. If the interest rate is fixed for the entire term, then it is a fixed interest rate. A floating interest rate is an interest rate (discount rate) on loans, the amount of which is periodically revised at agreed intervals (interest periods).

Effective interest rate (ieff) - This is the real interest rate that the borrower pays for purchasing and using a loan.

Interest period(n) is the time period during which interest is calculated.

Current or modern value(PV) is the initial amount of the deposit (debt).

Future or accumulated value(FV) is the initial amount of the deposit (debt) with accrued interest at the end of the term.

Urgent payment (R)- a sum of money intended to repay part of the principal debt and current interest on it over a certain period of time.

When granting a loan, various methods of repayment can be used. The main ones are:

· repayment in a lump sum payment, i.e. at the end of the loan term, the loan amount and interest are paid;

· repayment by installments over time, i.e. Part of the debt and interest on it are periodically paid.

Task No. 2.1. Providing a loan using a simple interest rate provides for periodic interest accrual on the original loan amount.

The amount of accrued interest (I) is determined as:

where FV is the accumulated or future value of money after a certain period;

PV is the original (current or modern) value of money, in this case the amount of the loan issued.

The accrued value after a certain period is found using the formulas:

where n is the interest accrual period,

i - interest rate.

Task No. 2.2. Providing a loan using a compound interest rate provides for periodic accrual of interest at a changing amount, by adding previously accrued interest to it.

If interest is calculated m times a year, then the future value formula is as follows:

where m is the number of interest accruals during one year.

In conditions of inflation, calculations become noticeably more complicated, since it is necessary to adjust the income received and profitability for inflation. The following indicators are usually used to characterize inflation:

inflation rate (f)– shows how much prices have increased over a certain period of time, usually a year, measured as a percentage;

inflation index (g)– shows how many times prices have increased over a certain period of time. In this case, the relationship between the level and the inflation index is determined as follows:

future value in terms of inflation (FVinf)– the initial deposit amount taking into account accrued interest;

purchasing power of money (FVP)– reflects the future value, cleared of the influence of inflation;

The relationship between future value adjusted for inflation (FVinf) and future value cleared of inflation (FVp) is described by the formula:

interest rate (iinf)– the rate announced by the bank takes into account inflation. At high levels of inflation, the bank needs to constantly adjust this rate in order to ensure the required level of profitability of the financial transaction;

real interest rate (r)– the rate, cleared of inflation, characterizes the real profitability of a financial transaction.

Task No. 2.3. Future value in terms of inflation (FVinf) using a simple interest rate is defined as:

The real simple interest rate is determined based on the equality of the following future values:

Task No. 2.4. The future value in terms of inflation (FVinf) using a compound interest rate is found using the formulas:

Using formulas similar to simple interest, it is necessary to express the purchasing power of money and the complex real interest rate.

The loan agreement of any bank must contain not only the interest rate (annual) for using the loan, but also the effective interest rate.

According to the instructions of the Central Bank of the Russian Federation (instruction No. 78-T dated June 1, 2007), from July 1, 2007, all commercial banks are required to indicate in loan agreements the effective interest rate calculated using a single formula. The following payments are included in its calculation:

· to repay the principal debt;

· on payment of interest;

· fees (commissions) for processing a loan application;

· commissions for issuing and maintaining a loan;

· commissions for opening and maintaining loan and (or) current accounts;

· commissions for settlement and operational services;

· payments by the borrower in favor of third parties.

The effective interest rate reflects all the client’s costs associated with processing and repaying the loan and includes additional income from the bank. During the loan term, funds received from borrowers in the form of monthly payments can be issued in the form of other loans, which brings additional income to the bank. This income is included in the calculation of the "effective rate". As for the borrower, the loan agreement still indicates the “interest rate” (annual) for using the loan, the payment term and the amount of the monthly payment. The effective rate has nothing to do with the borrower. The purpose of this innovation is to control the presence of hidden bank commissions that are illegal. Now, with the appearance of the line “Effective Interest Rate” in each loan agreement, the control of the Central Bank of the Russian Federation over the work of commercial banks providing lending services is being tightened. At the same time, the effective rate does not in any way affect the loan parameters (monthly payment, appreciation, down payment). You can verify this by reading the payment schedule and calculations given in the calculation.

The effective rate is usually used to compare loan programs offered by different lenders (banks), and helps the borrower to better navigate the large flow of loan offers, choosing the most profitable option. In most Western countries, the law predetermines that, regardless of what interest rate the credit institution announces in advertising and other materials, the bank is obliged to display the effective interest rate in the loan agreement so that the client knows how much the loan actually costs him, taking into account all expenses . In Russia, the initiative to legislate the calculation of the effective interest rate is being worked out at the level of the Central Bank of the Russian Federation and other departments and, most likely, will be put into practice in the near future. It should be noted that effective rates may differ depending on how they are calculated and what additional costs are included in the calculation.

For opening accounts, granting loans, discounting bills and many other financial transactions, banks (credit institutions) often charge commissions, which increase the profitability of the operation. Then the resulting amount will be equal to

where DP = PV h – amount of withheld commissions,

h – the relative amount of commission in the loan amount.

To determine the change in the profitability of a financial transaction due to commission deduction, the effective interest rate is used. This rate can be either simple or complex, both interest and discount.

Task No. 2.5.Case No. 1. Let’s say that a simple interest rate was announced on the loan and commissions were deducted for additional services provided. It is necessary to determine how the profitability of a financial transaction will change using the effective simple interest rate. The effective rate is determined by equating future values ​​excluding and taking into account commissions:

Task No. 2.6. Case No. 2. Let’s say a compound interest rate was announced on the loan and commissions were deducted for additional services provided. It is necessary to determine how the profitability of a financial transaction will change using the effective compound interest rate. The effective rate is determined by equating future values ​​excluding and taking into account commissions:

A more complex way of repaying a loan and much more often used in practice is periodic payments to repay the loan.

A flow of payments, all members of which are positive values, and the time intervals between payments are the same, is called financial rent (annuity).

Financial rent has the following parameters:

· annuity member- the amount of each individual payment;

· annuity period- time interval between two adjacent payments;

· annuity term– time from the beginning of the financial annuity to the end of its last period;

· rental rate- the rate used when increasing or discounting payments that form the rent;

· number of payments per year;

· number of interest accruals per year;

· moments of payment within the annuity period.

Classification of annuities can be made according to various criteria:

depending on the length of the annuity period:

· annual - if payments are made once a year;

· r - urgent - if payments are made r-times a year.

· by the number of interest accruals:

· annuity accrued once a year;

· annuities with accrual m times;

· annuity with interest accrual continuously.

by size of members:

· constants (with equal members);

· variable annuities.

· according to the probability of payment of members:

· true – that is, subject to unconditional payment

· conditional.

by number of members:

· annuities with a finite number of members or limited;

· infinite or eternal.

· depending on the presence of a shift in the moment of the beginning of the annuity in relation to the beginning of the action or some other moment of the annuity:

· immediate

· deferred or deferred.

· by payment method:

· postnumerando – if payments are made at the end of the period;

· prenumerando – if payments are made at the beginning of the period;

· perpetual annuity.

Future value financial rent postnumerando

· annual rent:

· term annuity:

where R is the amount of annual payments;

p – number of payments within one year;

R/p – the amount of one-time payments.

Modern value financial rent postnumerando determined by the formulas:

· annual rent:

· term annuity:

With pre-numerando financial annuity, the number of payments is one more than with post-numerando financial annuity. Future value financial rent prenumerando determined by the following formulas:

· annual rent:

)

· term annuity:

Modern value financial rent prenumerando determined by the formulas:

· annual rent:

· term annuity:

Task No. 2.7. Since the issued loan amount represents the current value, on which interest will be accrued periodically (m times a year), and for the repayment of which payments will be made p times a year, we will use the formulas for the current one as the basis for calculating annual and one-time payments the value of p-term financial annuities postnumerando and prenumerando. Then the amount of annual contributions will be:

· for post-numerando annuity:

· for annuity prenumerando:

The amount of one-time contributions is determined by dividing the annual contributions (R) by the number of contributions during one year (p).

Sinking Fund – This is a method of loan repayment that involves the borrower forming a debt repayment fund. Used when repaying a debt in one amount in the form of a one-time payment. The sinking fund is formed from successive contributions on which interest is charged. The creation of a repayment fund may be provided for in the loan agreement as a guarantee of its repayment.

If, under the terms of the loan, the debtor undertakes to repay the amount of the debt at the end of the term in the form of a one-time payment, then he must take measures to ensure this. When the amount of debt is significant, the usual measure is to create a sinking fund. The need to form such a fund is sometimes stipulated in the loan agreement as a guarantee of its repayment. Of course, the creation of a fund does not necessarily have to be linked to the repayment of debt. In practice, there is a need to accumulate funds for other reasons, for example, to accumulate depreciation charges for the purchase of worn-out equipment, etc.

The sinking fund is created from successive contributions by the debtor (for example, to a special bank account), on which interest accrues. Thus, the debtor has the opportunity to consistently invest funds to pay off the debt. The amount of contributions to the fund together with accrued interest accumulated in the sinking fund at the end of the period must be equal to its amount. Contributions can be either constant or variable over time.

Task No. 2.8. The creation of a repayment fund assumes that by the time the loan is due, the amount of funds in the fund, contributed several times a year, subject to interest accrued at rate b, will be sufficient to repay the loan with interest accrued at interest rate i m once a year. Naturally, creating a fund is advisable if b ³ i.

By equating the loan amount, taking into account accrued interest, to the amount of funds accumulated in the repayment fund, you can determine the amount of required annual (R) and one-time contributions (R/p).

Developing a debt repayment plan involves drawing up a schedule of periodic payments by the debtor and determining the amount of these payments. These payments are usually called debt service expenses or term payments (Rt). Debt service costs include both current interest payments (It) and funds intended to repay the principal debt (Ct).

The loan (debt) repayment plan can be presented in tabular form (see Table 2).

table 2

Loan (debt) repayment plan

Period No.	Сt	It	Rt	Dt
…
n

Task No. 2.9. When drawing up a debt repayment plan in equal amounts, it is implied that the amount to repay the debt (Ct) will remain constant throughout the entire period and is determined by:

where D is the initial amount of debt;

n – debt repayment period;

p – number of payments during the year.

where Dt is the debt balance for period t. At the moment of the first payment Dt = D.

Urgent payment (Rt) for period t:

Rt = Ct + It

Dt+1 = Dt - Ct

It is necessary to repeat the sequence of calculation steps Ct,It,Rt And Dt Bye Dt+1 will not be equal to zero.

Task No. 2.10. When drawing up a debt repayment plan with equal urgent payments, it is assumed that the constant component will be the amount of the urgent payment (Rt) and is determined as follows:

When making payments at the end of the period:

When making payments at the beginning of the period:

The amount of interest accrued for period t (It) is equal to:

If it is agreed that payments are made at the beginning of the period, and interest is accrued at the end of the period, then at the time of the first payment interest has not yet accrued, respectively, I1 = 0.

Amount to repay the principal debt (Ct) for period t:

Ct = Rt - It

The balance of the principal debt (Dt+1) for period t+1 is equal to:

Dt+1 = Dt – Ct

By analogy with the previous plan, it is necessary to repeat the sequence of steps for the calculation Ct,It,Rt And Dt Bye Dt+1 will not be equal to zero.

Related information.

MECHANISM OF BANKING CONSUMER LENDING TO COMMERCIAL ORGANIZATIONS

Savkina Yulia Alexandrovna

5th year student, Department of Finance and Credit, Ulyanovsk State Technical University, Ulyanovsk

E-mail: Yulya 111_91@ mail . ru

Shiryaeva Natalya Viktorovna

scientific supervisor, Ph.D. econ. Sciences, Associate Professor EMF, Ulyanovsk State Technical University, Ulyanovsk

The consumer lending market in Russia is on the path of rapid development and high growth rates are observed in the provision of services in this area of ​​the economy 2].

Only a credit institution that considers its main goal to make a profit on the basis of a license from the Central Bank of the Russian Federation has the right to issue loans, and has the right to carry out banking operations provided for by the Federal Law “On Banks and Banking Activities”.

The use of borrowed capital is beneficial from an economic point of view, since the payment for it is significantly lower than for equity capital, i.e., the return on equity is higher than interest on the loan. In addition, attracting this source allows you to increase the size of controlled monetary resources, increasing the investment and financial capabilities of the enterprise.

Borrowed capital allows the company's owners to receive additional profit and increase the return on equity ratio.

Let's consider a situation in which CJSC Gulliver acquires a targeted consumer loan to complete the construction of the main block of a building from the Russian commercial bank VTB 24, providing a wide range of financial services for lending to legal entities. The optimal amount for obtaining a consumer loan compared to previous periods is an amount of 480 thousand rubles.

As a rule, Russian banks use two options for loan payments - annuity or differentiated payments. In the case of an annuity, the client pays the bank the same amount every month, which includes repayment of principal and interest. Most Russian banks prefer annuity payments because the financial burden at the initial stage of loan payments is less and, with the same level of income, annuity payments allow you to earn a larger loan amount in comparison with differentiated payments (this is a consequence of the small financial burden at the initial stage of payments ) .

For clarity, we will give a specific example of differentiated and annuity payments when lending in the amount of 480 thousand rubles at 14% per annum for a period of 12 months (see Table 1 and Table 2).

You can calculate the repayment amount under the annuity debt payment scheme using this formula:

where is the annuity payment;

Monthly interest rate;

Table 1.

Loan repayment schedule for aannuity payments (rub.)

Table 2.

Loan repayment scheduledifferentiated payments(rub.)

where is the accumulated interest;

Initial amount of debt;

Interest rate .

With an annuity repayment schedule, you need to pay a monthly amount that remains unchanged throughout the entire loan term (RUB 43,097.82). In general, an annuity payment involves payment of the principal amount and accrued interest on the balance of the payment.

A look at the annuity payment from the bank’s side: in the same payment amount the bank initially includes its profit, that is, the payment of interest and a small share of the “loan body”, and in subsequent payments the client pays the principal amount of the loan and the remaining interest on it.

where is the differentiated payment;

Initial loan amount;

Number of months (term for which the loan was issued).

With differentiated payment, the principal debt is paid in equal installments (40,000 rubles), and interest is accrued on the balance of the loan.

Differentiated payment on the part of the credit institution: the entire loan amount is divided evenly over the entire loan term, then interest is calculated monthly on the balance of the loan. And since the amount of the principal debt becomes smaller every month, therefore, the amount of interest accrued on it also becomes smaller, so the amount of the obligatory payment in the borrower’s payment schedule decreases.

As can be seen from the study, in the case of a differentiated payment (without early repayment), CJSC Gulliver will pay 773.8 rubles. less than with an annuity. For larger periods and amounts, the difference will be more significant.

The main goal of the enterprise under study in 2012 is the formation of an optimal capital structure and a rational structure of the enterprise’s sources of funds, precisely by attracting consumer credit, in order to finance the required volumes of costs and ensure the desired level of income. Attracting borrowed funds will allow the company to increase the volume of its activities at a rapid pace, which can further lead to maximizing profits.

CJSC Gulliver expects sales to increase by 30% in 2012. In this case, all asset items (including fixed capital) and current liabilities, taking into account the volume of consumer credit, change in proportion to the sale. It is assumed that the relationships between sales and expense items, assets and liabilities should be very close and free from any extraneous influences.

Table 3 presents the forecast balance of the trading organization.

CJSC Gulliver plans to significantly increase the investment of funds in its activities in 2012, as evidenced by the increase in the balance sheet currency from 36,618 thousand rubles. in 2011 to 36698.898 thousand rubles. in 2012. The value of assets increased due to investments in current assets (by 80,898 thousand rubles compared to 2011), and the value of non-current assets remained at a constant level (9,652 thousand rubles). The balance sheet liability is characterized by positive dynamics in the value of equity capital (by 246,804 thousand rubles) and positive dynamics of the total value of current liabilities (by 3,825 thousand rubles). The organization has no long-term obligations. Table 4 shows the planned profit values.

Table 3.

Forecast balance for 2012 of CJSC Gulliver, (thousand rubles)

According to the calculations carried out, the enterprise will achieve good results in the planned period, as evidenced by an increase in the total sales revenue by 68,466 thousand rubles. , which is more than in the reporting year 2011 and by the end of the planning period will amount to 296,686 thousand rubles. A positive factor in the growth of net profit (by RUB 6,680.4 thousand compared to 2011) was an increase in sales profit (by RUB 61,651.8 thousand) and a relative reduction in sales costs. Usually,

Table 4.

Forecast profit and loss statement, thousand rubles.

A factor in such positive trends is the implementation of a saving policy by reducing purchase prices.

Further analysis is carried out in order to improve the mechanism for managing the profitability of total capital by optimizing the ratio of equity and borrowed funds in the enterprise, using the calculation of the effect of financial leverage, which will determine the optimality of attracting borrowed funds. To determine the level of impact of the capital structure on the degree of efficiency of the organization's financing, it is necessary to use return on equity as an optimization criterion.

R SK = (P-r*ZK)*(1-np), (4)

where P is profit before tax;

R is the average weighted interest rate on borrowed funds, in fractions of one;

ZK - the amount of borrowed capital;

Another evaluation criterion is the payback period (C approx), which characterizes the rate of return on invested capital.

With ok = SK+ZK, (5)

(P - r*ZK)*(1-np)

An indicator reflecting the degree to which additional profit is obtained when using borrowed capital is called the effect of financial leverage. It is calculated using the following formula:

EGF = (1 - np) × (ER - r) × ZK , (6)

where EFR is the effect of financial leverage;

ER - coefficient of economic return on assets;

Нп - income tax rate, in decimal expression;

r - average interest rate for a loan;

ZK - the amount of borrowed capital;

SK - the amount of equity capital.

Weighted average cost of capital for 2012:

, (7)

where WACC is the weighted average cost of capital,%;

y - required or expected return on equity,%;

E - equity;

D - borrowed funds;

K - balance currency;

b - required or expected return on borrowed funds,%;

Income tax rate for a company,%

The obtained data for calculating the effect of financial leverage and the weighted average cost of capital are compiled in Table 5.

Table 5.

Calculation of the effect of financial leverage of JSC Gulliver

According to the results, financial leverage turned out to be positive, which means that the company can attract additional borrowed funds to carry out its current activities.

The weighted average market value of capital increases in 2012 by 8.89% compared to 2011, which causes an increase in the company's risk in terms of loss of solvency and decreased liquidity, while the market value of invested capital significantly exceeds its value calculated taking into account actual values ​​of value borrowed capital and market values ​​of equity value, this is explained by the company's borrowing policy at a lower interest rate than that established on the market.

The indirect method of cash flow analysis (Table 6) allows us to trace the relationship between the profit received by the organization and the probable change in the amount of cash in the organization.

Table 6.

Analysis of cash flows by the indirect method for 2011, thousand rubles

Positive cash flow from current activities in 2011 (27,238 rubles) is characterized by the fact that the company increased the volume of accounts payable in the amount of 4,650 thousand rubles, which indicates an increase in financial tension in the organization under study. There is also an increase in the size of accounts receivable, as evidenced by the negative cash flow (791 thousand rubles), which shows a temporary diversion from the enterprise’s turnover of funds necessary for its uninterrupted functioning.

The most important is the net cash flow from investment activities (437,850 thousand rubles), the increase of which occurred due to proceeds from the repayment of loans granted to other organizations, and the decrease due to the acquisition of fixed assets and other non-current assets (2,995 thousand rubles) , as well as through loans provided to other organizations (RUB 1,835 thousand). The high value of net cash flow from financial activities (415,777 thousand rubles) causes an increase in the enterprise’s financial dependence on borrowed funds and an increase in the volume of financial liabilities. You can plan cash flow for the future (Table 7).

Table 7.

Analysis of cash flows by the indirect method for the planning period, thousand rubles.

These tables show the positive dynamics of net cash flow for the organization as a whole. The largest volume of money supply in the planned cash flows for the planning period is provided by the turnover of investment and financial activities. The amount of cash inflow from current activities in the planning period, taking into account the forecast, amounted to 30365.5 thousand rubles, which is 3918.5 rubles. more than in 2011 (analyzed period). This is a positive fact, since it is the current activities that should ensure sufficient funds to carry out investment and financial operations.

In the planning period, in CJSC Gulliver, cash flows from financial activities were primarily focused on receipts from loans and credits provided by other organizations; this is indicated by the excess of the positive flow (516,450 thousand rubles) over the negative flow (486,140 thousand rubles. ). Cash outflows, in turn, were focused on the return of borrowed funds, i.e., on the repayment of loans and credits (without interest), as evidenced by a significant outflow of funds for this element (480,000 thousand rubles). We can conclude that the organization carries out fairly rational cash flow management during the planning period.

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