Model of the loan process in the context of unrealized income and loss prevention

Information
Title: Model of the loan process in the context of unrealized income and loss prevention
Issue: Vol. 8, No 1, 2015
Published date: 20-05-2015 (print) / 20-05-2015 (online)
Journal: Journal of International Studies
ISSN: 2071-8330, eISSN: 2306-3483
Authors: Jiří Doležal
Jiří Šnajdr
Jaroslav Belás
Zuzana Vincúrová
Keywords: commercial banks, Small and medium-sized enterprises, credit risk, internal rating models, loan processing
DOI: 10.14254/2071-8330.2015/8-1/8
DOAJ: https://doaj.org/article/bf24b09c138749c4856582c6c4e8d92f
Language: English
Pages: 91-106 (16)
JEL classification: G21
Website: http://jois.eu/files/JIS_Vol8_No1_Dolezal.pdf
File https://www.jois.eu/files/JIS_Vol8_No1_Dolezal.pdf
Abstract

Currently, in the banking sector of the economically developed countries is possible to monitor the trend of high liquidity and the low volume of credit financing of Small and Medium-sized Enterprises (SMEs). This situation is far from ideal because the banks are losing potential revenue and the SME segment within appropriate extent cannot finance its business objectives through bank loans. The aim of the paper was to propose a model for a comprehensive assessment of the credit worthiness of the client and retrospective evaluation of bank lending in terms of unrealized income and loss prevention, resulting from the application of exit strategies in the SME segment. The aim of this article was to propose a model for comprehensive assessment of the credit worthiness of the client and retrospective evaluation of bank lending in terms of unrealized income and loss prevention, resulting from the application of exit strategies in the SME segment. Our most important finding is that there is potentially quite a large group of clients who have problems with the bank ratings, but despite the fact that the bank does not give them credit, these companies continue to remain on the market. Another important finding is that there is the possibility of improving the loan process in the SME segment. These options are incorporated in our proposal to the loan process.