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March 2022 (published: 14.03.2022)
Number 1(48)
Home > Issue > Disadvantages of the lending procedure
Kolesnikov A.M. , Posnaya E.А. , Zima Yu.A.
At present, the Russian banking system is actively developing. In this context, the issue of using foreign experience in the implementation of banking activities regarding the main profitable banking operation - lending is widely discussed. All over the world, in practice, many different methods and approaches are used to solve the problem of assessing the creditworthiness of a borrower. In practice, banks in developed countries use complex systems for assessing the creditworthiness of potential borrowers, which include a large number of indicators. Foreign commercial banks have tested various systems for assessing the creditworthiness of borrowers. Many of them have stood the test of time and still exist today. Its partial application by Russian banks can give positive results. The retail loan market is growing relatively fast. Trust in credit products is growing, and the financial literacy of the population is gradually increasing. The existing problems are important enough, but often they need to be addressed. Therefore, today the problems with lending to individuals in the Russian Federation are very acute, each group of problems identified by us is interconnected and requires a quick solution. It is necessary to completely solve this problem, since the development of this market depends not only on the state, but also on each of its participants, including borrowers. If you look at this topic from the point of view of banking institutions, the following main problems of the consumer lending market in Russia can be identified. Borrower's credit history. The credit institution must identify in advance the clients who have already granted a loan and have not returned it.
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Keywords: credit, bank, borrower, client, market, default, discount rate.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 336.71
Disadvantages of the lending procedure
At present, the Russian banking system is actively developing. In this context, the issue of using foreign experience in the implementation of banking activities regarding the main profitable banking operation - lending is widely discussed. All over the world, in practice, many different methods and approaches are used to solve the problem of assessing the creditworthiness of a borrower. In practice, banks in developed countries use complex systems for assessing the creditworthiness of potential borrowers, which include a large number of indicators. Foreign commercial banks have tested various systems for assessing the creditworthiness of borrowers. Many of them have stood the test of time and still exist today. Its partial application by Russian banks can give positive results. The retail loan market is growing relatively fast. Trust in credit products is growing, and the financial literacy of the population is gradually increasing. The existing problems are important enough, but often they need to be addressed. Therefore, today the problems with lending to individuals in the Russian Federation are very acute, each group of problems identified by us is interconnected and requires a quick solution. It is necessary to completely solve this problem, since the development of this market depends not only on the state, but also on each of its participants, including borrowers. If you look at this topic from the point of view of banking institutions, the following main problems of the consumer lending market in Russia can be identified. Borrower's credit history. The credit institution must identify in advance the clients who have already granted a loan and have not returned it.
Read the full article
Keywords: credit, bank, borrower, client, market, default, discount rate.
DOI 10.17586/2310-1172-2022-15-1-100-104