مخاطر منح الائتمان من قبل المصارف التجارية

Other Title(s)

Risks of credit grant by commercial banks

Joint Authors

أحمد حسن وسمي
شاكر نوري إسماعيل

Source

مجلة جامعة بابل للعلوم الإنسانية

Publisher

University of Babylon

Publication Date

2021-07-31

Country of Publication

Iraq

No. of Pages

19

Main Subjects

Financial and Accounting Sciences
Law

English Abstract

The risk is a natural element in the banking environment, and it is accompanied regardless of its nature and whatever its type.

Therefore, the commercial banks, when providing loans and credits, are exposed to a set of risks.

The latter is the result of a number of factors, but the intrinsic factor is a result of the unwillingness of the borrower to pay back the owed debts or the inability to generate an appropriate income for the purpose of repaying the loan.

The credit risk is the primary variable affecting net income and the market value of equity resulting from non-payment or postponement and there are different types characterized by the possibility of default, and loans represent the largest of these types, which characterized the greatest amount of credit risk, the change in economic conditions and the operating climate of the company affects the cash flows available that serve the debt.

Therefore, these conditions must be predicted, even if only in part, by using statistical methods, methods and models to make it easier for banks to analyze the credit for each loan application separately to assess the borrower's ability to repay the loan, so banks should attach special importance to such risks in order to put an end to the negative effects resulting and keep it to the lowest level as possible.

Data Type

Conference Papers

Record ID

BIM-1379165

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