ON SELECTION OF METHOD FOR ASSESSMENT OF FINANCIAL CONDITION OF CREDIT INSTITUTIONO

Author(s): Korneichuk Valery Ivanovich

Rubric: Economy

DOI: 10.21777/2587-554X-2019-4-34-39

Release: 2019-4 (31)

Pages: 34-39

Keywords: Credit institution, financial condition of credit institution, method of assessment of financial condition of credit institution

Annotation: The work carried out an assessment of the financial condition of the average bank «JAY AND TI BANK» JSC by the most well-known methods used in the financial analysis of the activity of the credit institution. For each of the techniques, both the positive aspects and its shortcomings have been identified. Based on the results obtained and their discussion, it is recommended that the internal audit departments of credit institutions apply the methods developed by the Bank of Russia, as well as the CAMELS methodology developed by the US Federal Reserve when assessing the financial condition. Financial analysis of the credit institution should be carried out using complex methods, taking into account a number of additional factors: the size of the client base and its dynamics; The amount of contributions to the compulsory reservation fund; The amount of resources received through the IBC; Intensity of payments through the RCC of the Bank of Russia; Credit risk caused by insufficient diversification of credit portfolios of large clients. It is proposed to use the CAMELS methodology and V. Kromonov methodology to conduct express analysis of the financial condition of credit information by external users.

Bibliography: Korneichuk VA.IV. ON SELECTION OF METHOD FOR ASSESSMENT OF FINANCIAL CONDITION OF CREDIT INSTITUTIONO // Economics and Management. – 2019. – № 4 (31). – С. 34-39. doi: 10.21777/2587-554X-2019-4-34-39