Banking audit. Assessment of credit risks and audit of the procedure for creating a reserve for possible loan losses (LRLP) (the most important)

Lecture notes, cheat sheets
Free library / Directory / Lecture notes, cheat sheets

Banking audit. Assessment of credit risks and audit of the procedure for creating a reserve for possible loan losses (LRLP) (the most important)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

Comments on the article

Table of contents (expand)

34. Assessment of credit risks and audit of the procedure for the formation of a reserve for possible losses on loans (RVPS)

Each commercial bank should have its own internal regulation on the procedure for the formation and use of RVPS, developed on the basis of instruction No. 62-a, but taking into account the characteristics of the clientele credited by the commercial bank, the use of forms to ensure the repayment of loans, the use of a methodology for assessing the solvency and creditworthiness of the borrower that exists the procedure for creating a reserve in a multi-branch commercial bank, the procedure for making decisions to reduce or increase the credit risk group.

When auditing on this issue, one should proceed from the following principles laid down by the Central Bank of the Russian Federation in the reserve system for covering credit risks:

1) The obligation to create a RVPS.

2) Form RVPS only for the principal amount of the debt.

3) Formation of RVPS for each loan separately.

4) Distribution of loans by credit risk group.

5) Definition for all loans of one borrower of a single group of credit risk.

6) The need for monthly adjustments to the RVPS.

7) Creation of RVPS at the expense of deductions attributable to the expenses of a commercial bank, regardless of the amount of income received.

Each commercial bank, when assessing the financial condition of the borrower, is guided by its own methodology for assessing their payment and creditworthiness, based on practical experience. Auditing practice shows that potential borrowers are divided by commercial banks into 3 classes by solvency and creditworthiness, based on the borrower's rating, determined on the basis of actual values calculated from its balance sheet: absolute liquidity ratio, coverage ratio, independence, financial stability and profitability. If the borrower has the 1st class of creditworthiness, according to his balance sheet, then his financial condition is good, if the 2nd is average, the 3rd is bad.

Author: Shevchuk D.A.

<< Back: Audit of credit operations of the bank

>> Forward: Organization of accounting in banks

We recommend interesting articles Section Lecture notes, cheat sheets:

▪ Russian history. Crib

▪ Public relations. Crib

▪ Economic statistics. Crib

See other articles Section Lecture notes, cheat sheets.

Read and write useful comments on this article.

<< Back

Latest news of science and technology, new electronics:

The existence of an entropy rule for quantum entanglement has been proven 09.05.2024

Quantum mechanics continues to amaze us with its mysterious phenomena and unexpected discoveries. Recently, Bartosz Regula from the RIKEN Center for Quantum Computing and Ludovico Lamy from the University of Amsterdam presented a new discovery that concerns quantum entanglement and its relation to entropy. Quantum entanglement plays an important role in modern quantum information science and technology. However, the complexity of its structure makes understanding and managing it challenging. Regulus and Lamy's discovery shows that quantum entanglement follows an entropy rule similar to that for classical systems. This discovery opens new perspectives in the field of quantum information science and technology, deepening our understanding of quantum entanglement and its connection to thermodynamics. The results of the study indicate the possibility of reversibility of entanglement transformations, which could greatly simplify their use in various quantum technologies. Opening a new rule ... >>

Mini air conditioner Sony Reon Pocket 5 09.05.2024

Summer is a time for relaxation and travel, but often the heat can turn this time into an unbearable torment. Meet a new product from Sony - the Reon Pocket 5 mini-air conditioner, which promises to make summer more comfortable for its users. Sony has introduced a unique device - the Reon Pocket 5 mini-conditioner, which provides body cooling on hot days. With it, users can enjoy coolness anytime, anywhere by simply wearing it around their neck. This mini air conditioner is equipped with automatic adjustment of operating modes, as well as temperature and humidity sensors. Thanks to innovative technologies, Reon Pocket 5 adjusts its operation depending on the user's activity and environmental conditions. Users can easily adjust the temperature using a dedicated mobile app connected via Bluetooth. Additionally, specially designed T-shirts and shorts are available for convenience, to which a mini air conditioner can be attached. The device can oh ... >>

Energy from space for Starship 08.05.2024

Producing solar energy in space is becoming more feasible with the advent of new technologies and the development of space programs. The head of the startup Virtus Solis shared his vision of using SpaceX's Starship to create orbital power plants capable of powering the Earth. Startup Virtus Solis has unveiled an ambitious project to create orbital power plants using SpaceX's Starship. This idea could significantly change the field of solar energy production, making it more accessible and cheaper. The core of the startup's plan is to reduce the cost of launching satellites into space using Starship. This technological breakthrough is expected to make solar energy production in space more competitive with traditional energy sources. Virtual Solis plans to build large photovoltaic panels in orbit, using Starship to deliver the necessary equipment. However, one of the key challenges ... >>

Random news from the Archive

GPS beacons for drug bottles 21.05.2014

To catch drug-addicted pharmacy robbers, the US police use all methods available today. Now, instead of a bottle of OxyContin - an opioid analgesic based on oxycodone, which has a very strong pain-relieving effect and is often used illegally by drug addicts - pacifiers with a built-in "gift" from the police will be available at points of sale.

To combat and subsequently quickly catch drugstore robbers, the New York City Police Department (NYPD) decided to supply state pharmaceutical stores with baits - fictitious bottles of OxyContin, in the lid of which a miniature GPS device is mounted. Thus, during the robbery of pharmacies by drug addicted criminals, instead of a real bottle with a drug, the robber will receive an imitation, which, although it does not contain a pill, looks no different from the package with a real drug and even makes a similar sound when shaking conditional pills. And the unsuspecting attacker himself will give out the current location for the police group to arrive at the designated place.

One of the last reported cases of successful practice of this technology was an incident at the HealthSource pharmaceutical store in New York. Then the robber demanded money and a bottle of OxyContin from the sellers. Instead of the latter, he received an analogue with the possibility of GPS-tracking the capacity. Police were able to track down 45-year-old Scott Kato, who robbed a pharmacy, 30 blocks from the crime scene, but he was shot while resisting arrest.

The use of such baits proved to be extremely effective, despite the apparent simplicity of the idea. Since their introduction, 111 drug theft suspects have been caught. Such measures, given the extreme severity of the drug trafficking problem, are a necessary and completely justified step that will deter robbers from trying to take possession of OxyContin to consume or sell the contents of a bottle at $ 80 per tablet.

The New York Times noted that this is the first such case when the police department openly informed about the use of such devices as a means of capturing a villain. This fact, according to NYPD Commissioner Raymond Kelly (Raymond Kelly), should restrain the zeal of criminals from the idea of easy money or the use of a prohibited drug.

The bait bottles will be produced by the same company that develops the real OxyContin.

Other interesting news:

▪ The new material melts in the dark and hardens in the light.

▪ New small craft tracking technology

▪ Adaptive phased antenna arrays

▪ Larva meat substitute

▪ Swarms of drones against air defense

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ Modeling section of the site. Selection of articles

▪ article Revolutionary keep pace, the restless enemy does not sleep. Popular expression

▪ article What is TNT equivalent? Detailed answer

▪ article Head (head) of the chemical laboratory. Job description

▪ article Manufacture of printed circuit boards (including using a laser printer). Encyclopedia of radio electronics and electrical engineering

▪ article Self-inflating balloon. Focus Secret

Leave your comment on this article:

All languages of this page

Home page | Library | Articles | Website map | Site Reviews