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39each blockchain. It is a matter of the blockchain's protocol - or rules for what is and is not a valid transaction, or a valid creation of a new block. The process of verification can be tailored for each blockchain. Any needed rules and incentives can be created when enough nodes arrive at a consensus on how transactions ought to be verified.
Blockchain it is a technology of the future, and this technology will be used actively in the future.
References
1. Harvard Business Review - "A Brief History of Blockchain" by Vinay Gupta.
2. increasing the speed of tasks solving by parallelization of tasks Gritsay I.P., Brook A.S. // European Journal of Natural History. 2015. № 5. C. 44.
ANALYSIS AND MANAGEMENT OF CREDIT RISKS IN THE BANKING
SECTOR Akhmer Ye.Zh.
Akhmer Yerassyl Zhanbolatuly — Master Student, SPECIALTY: INFORMATION SYSTEMS, INTERNATIONAL INFORMATION TECHNOLOGY UNIVERSITY, ALMATY, KAZAKHSTAN
Abstract: in the current macroeconomic situation, the importance of effective strategic management and risk management as factors predetermined by the stability of credit institutions was fully manifested. Currently, for the banking sector the most significant is the credit risk. The solution of the problem of minimizing credit risks today is necessary in legislative, methodological and organizational terms. A comprehensive development of this problem is required, therefore, reducing credit risks is not only extremely urgent, but also a difficult economic task.
Keywords: banking system, credit risk, credit score.
In the current situation, the most important problem for banks is the evaluation and analysis of the risks of loan portfolios, as an increase in the share of problem loans affects the positions held by the bank in the credit market. For successful lending, banks must develop and implement effective credit risk management systems. Modern research is increasingly focused on identifying factors that can have the greatest impact on the formation of key performance indicators of the bank, such as profit, interest margin and net worth. The main goal of any business activity is, as you know, and profit maximization, which should be based on a thorough and in-depth evaluation of all the factors that influence it. That is why the problem of risk analysis becomes particularly important.
Crediting to customers is one of the main activities of any commercial bank. Recently, the credit activity of banks has become increasingly diverse: old loan products are being modified, new ones appear on the market, and customers require a more careful, individual approach to the formation of complex credit products. This all makes the credit activity of banks more diverse, and the risks associated with lending activities are more complex and large in scope.
Credit is one of the main elements of bank assets, even a slight decrease in the value of the loan portfolio will lead to serious losses of capital. Credit operations are the most profitable article of the banking business. At the same time, the structure and quality of the loan portfolio are linked to the main risks to which the bank is exposed in the course of operating activities. Among them, the central place is taken by credit risk (or the risk that the borrower does not repay principal and interest on the loan in accordance with the terms and conditions of the loan agreement). The profitability of a commercial bank is directly dependent on this type of risk, since the cost of the credit part of the bank's portfolio of assets is largely influenced by the non-return or partial repayment of loans, which in turn affects the bank's own capital [1].
Credit risk is formed from factors that may lie on the borrower's side and on the side of the bank. The factors that lie on the borrower's side include, for example, the creditworthiness and the nature of the concluded loan transaction. The factors that lie on the side of the bank include the organization of the credit process.
Credit risk is a complex concept. Its magnitude in the country is affected by both macro- and microeconomic factors. Macroeconomic factors include: the general state of the country's economy, the conditions for the functioning of the country's main financial markets and banking system, the degree of development of banking legislation and the state's policy in the banking business. The impact of microeconomic factors, such as the risk of a specific borrower, the share of overdue loans, the quality of collateral, etc., is due to transactions conducted by a specific bank. Limiting the negative impact of these factors is the task of bank managers who, in the current
circumstances, need to develop and implement an understandable and flexible credit risk management system for the successful functioning of the credit institution [2].
The main element of creating an effective credit risk management system is the development of a single credit culture through the introduction of standard instructions for initiating, analyzing, deciding and monitoring individual loans. The framework for the development of a unified credit culture, the introduction of uniform credit instructions and approaches to risk management, and the definition of the maximum permissible level of risk represent the components of an approved credit policy [3].
Credit risks are the most common cause of bank failures, in connection with which all regulators set credit risk management standards. Despite the innovations in the financial services sector, credit risk is still the main cause of banking problems. The reasons for the emergence of credit risk may be bad faith of the borrower, deterioration of the competitive position of a particular firm, an unfavorable economic situation.
The basis for reliable management of reliable risk management is the definition of existing and potential credit risks inherent in credit operations. The main task facing banking structures is to minimize credit risks. Among measures to counteract these risks is a clearly formulated policy of the organization with respect to credit risks and setting parameters for which credit risks will be monitored.
Credit risk management is defined as one of the strategies used to implement activities in a risk environment. In the process of its activity, the economic subject makes a choice between avoiding risk, accepting risk and managing risk. Manage risk means choosing one of the following alternatives: taking risks, giving up the proposed activity that leads to risk or applying measures that help reduce risk based on a preliminary risk analysis. The main feature of risk management of a commercial bank is the achievement of the tasks set for the bank, using the development of a scientific organizational procedure that is carried out regularly and is of a justified nature.
Most economists involved in the study of risk, in their work, risk management is considered as a specific activity, including a sequence of certain stages: risk identification, risk assessment, risk strategy selection, selection and application of risk reduction methods, control over the level of risk. If there is no possibility of equality of risk to zero, the main task of risk management will be to limit its negative impact. Consequently, the management of the credit risk of a commercial bank, which is the main work of the bank in the process of implementing credit operations, covers all stages of this work - from analyzing the credit application of the potential client until the end of the calculations and considering the possibility to resume lending.
The organization and structure of the process of managing credit risks approximately looks like this: assessment and analysis of credit risk. In practice, domestic credit institutions the most widely used methods for assessing credit risks are:
1. The methodology of the National Bank of Kazakhstan. The Central Bank of the Republic of Kazakhstan establishes both general criteria for credit assignment to one of the five quality categories, as well as the main criteria for the formation of an appropriate reserve. The regulatory acts of the National Bank of the Republic of Kazakhstan do not contain detailed regulation of the process of assessing and analyzing the financial condition and quality of loan servicing.
2. Internal credit scoring. Credit scores are widely used and most common in the practice of banks. The presence of scoring contributes to the reduction of the "human factor" and reduces the qualification responsibility of the employee, and also reduces the time for consideration of the application. Scoring system soulless, but in practice it showed high efficiency [4].
Credit risk management is the main content of the bank's work in the process of implementing a loan operation and covers all stages of this operation - from analyzing the loan application of a potential borrower to the completion of settlements and considering the possibility of renewal of credit. The management of credit risk is an integral part of the management of the lending process as a whole. To effectively manage credit risks and risks in general, it is necessary to build on scientific developments, be able to combine and improve known methods and apply them in their daily work. It is important that the credit risk management system is transparent, practical and consistent with the strategic goals of the commercial organization.
References
1. Shirshinskaya E.B. Operations of commercial banks: Russian and foreign experience. Edition 2, pererab.
and additional. M: Finance and Statistics, 1995. 370 p.
2. Grüning H. van, Brjowicz Bratanovich S. Analysis of bank risks. The system for assessing corporate
governance and financial risk management / Trans. from the English; entry. sl. Dan. K.R. Tagirbekova M:
"Ves Mir" Publishing House, 2004.
3. PechanovaM.Y. Management of financial risks. Moscow: Finance and Statistics, 2012. P. 61
4. BelyaevM.K. Specific risks of consumer lending. - Moscow: Elite, 2006. 56 p.
