Credit risk management: A survey of practices in Indian Private Banks.
Saved in:
| Title: | Credit risk management: A survey of practices in Indian Private Banks. |
|---|---|
| Authors: | Andrabi, Syed Roohul Islam1, Brindha, G.2 |
| Source: | Turkish Online Journal of Qualitative Inquiry. 2021, Vol. 12 Issue 7, p8413-8422. 10p. |
| Subject Terms: | Banking industry, Credit risk management, Private banks, Loan portfolio management, Credit risk |
| Geographic Terms: | India |
| Abstract: | Purpose: Proposes to look at current credit risk management practices by the Indian private banks. Due to the increasing diversity of types of counterparties and the growing diversity of forms of bonds, credit risk management has emerged as a leading edge in the risk management activities of financial service companies. The purpose of this study is to provide an insight into the current practices of Indian Private Banks Approach - A brief questionnaire containing eight questions was mailed to 100 bank representatives from 10 randomly selected private banks headquartered in India. Findings - The identification of counterparty default risk was found to be the most important goal of the credit risk models employed. Nearly half of the participating banks use models that are also able to handle the risk of counterparty migrating. Surprisingly, only a minority of banks currently use a vendor-owned or marketed model for credit risk management. Interestingly, those who use their own internal model also use a model commercialized by the vendor. It is not surprising that these models are more widely used for the management of nontrading credit loan portfolios than for the management of negotiated loan portfolios. Value -The results make it possible to understand the common practices of these banks. As such, they allow us to draw conclusions about how important the risks are perceived to be. The document is of particular value to Treasurers to better understand current trends in CRM, and scholars intend to carry out research in the field. [ABSTRACT FROM AUTHOR] |
| Copyright of Turkish Online Journal of Qualitative Inquiry is the property of Turkish Online Journal of Qualitative Inquiry and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Education Research Complete |
| FullText | Links: – Type: pdflink Text: Availability: 0 |
|---|---|
| Header | DbId: ehh DbLabel: Education Research Complete An: 161812189 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
| IllustrationInfo | |
| Items | – Name: Title Label: Title Group: Ti Data: Credit risk management: A survey of practices in Indian Private Banks. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Andrabi%2C+Syed+Roohul+Islam%22">Andrabi, Syed Roohul Islam</searchLink><relatesTo>1</relatesTo><br /><searchLink fieldCode="AR" term="%22Brindha%2C+G%2E%22">Brindha, G.</searchLink><relatesTo>2</relatesTo> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Turkish+Online+Journal+of+Qualitative+Inquiry%22">Turkish Online Journal of Qualitative Inquiry</searchLink>. 2021, Vol. 12 Issue 7, p8413-8422. 10p. – Name: Subject Label: Subject Terms Group: Su Data: <searchLink fieldCode="DE" term="%22Banking+industry%22">Banking industry</searchLink><br /><searchLink fieldCode="DE" term="%22Credit+risk+management%22">Credit risk management</searchLink><br /><searchLink fieldCode="DE" term="%22Private+banks%22">Private banks</searchLink><br /><searchLink fieldCode="DE" term="%22Loan+portfolio+management%22">Loan portfolio management</searchLink><br /><searchLink fieldCode="DE" term="%22Credit+risk%22">Credit risk</searchLink> – Name: SubjectGeographic Label: Geographic Terms Group: Su Data: <searchLink fieldCode="DE" term="%22India%22">India</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: Purpose: Proposes to look at current credit risk management practices by the Indian private banks. Due to the increasing diversity of types of counterparties and the growing diversity of forms of bonds, credit risk management has emerged as a leading edge in the risk management activities of financial service companies. The purpose of this study is to provide an insight into the current practices of Indian Private Banks Approach - A brief questionnaire containing eight questions was mailed to 100 bank representatives from 10 randomly selected private banks headquartered in India. Findings - The identification of counterparty default risk was found to be the most important goal of the credit risk models employed. Nearly half of the participating banks use models that are also able to handle the risk of counterparty migrating. Surprisingly, only a minority of banks currently use a vendor-owned or marketed model for credit risk management. Interestingly, those who use their own internal model also use a model commercialized by the vendor. It is not surprising that these models are more widely used for the management of nontrading credit loan portfolios than for the management of negotiated loan portfolios. Value -The results make it possible to understand the common practices of these banks. As such, they allow us to draw conclusions about how important the risks are perceived to be. The document is of particular value to Treasurers to better understand current trends in CRM, and scholars intend to carry out research in the field. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Turkish Online Journal of Qualitative Inquiry is the property of Turkish Online Journal of Qualitative Inquiry and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
| PLink | https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=ehh&AN=161812189 |
| RecordInfo | BibRecord: BibEntity: Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 10 StartPage: 8413 Subjects: – SubjectFull: Banking industry Type: general – SubjectFull: Credit risk management Type: general – SubjectFull: Private banks Type: general – SubjectFull: Loan portfolio management Type: general – SubjectFull: Credit risk Type: general – SubjectFull: India Type: general Titles: – TitleFull: Credit risk management: A survey of practices in Indian Private Banks. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Andrabi, Syed Roohul Islam – PersonEntity: Name: NameFull: Brindha, G. IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 08 Text: 2021 Type: published Y: 2021 Identifiers: – Type: issn-print Value: 13096591 Numbering: – Type: volume Value: 12 – Type: issue Value: 7 Titles: – TitleFull: Turkish Online Journal of Qualitative Inquiry Type: main |
| ResultId | 1 |
