Defining the probability of bank debtors’ default using financial solvency assessment models
Due implementation of debtors’ financial solvency assessment models by Ukrainian banks with the aim of calculating the probability of their default (PD) is the next step towards the integration of Ukrainian banking system into global banking community, convergence of methodical approaches to assessi...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2018-05-01
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| Series: | Banks and Bank Systems |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10380/BBS_2018_02_Kuznichenko.pdf |
| _version_ | 1811280612661657600 |
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| author | Yana Kuznichenko Mariia V. Dykha Natalia Pavlova Serhiy Frolov Olha Hryhorash |
| author_facet | Yana Kuznichenko Mariia V. Dykha Natalia Pavlova Serhiy Frolov Olha Hryhorash |
| author_sort | Yana Kuznichenko |
| collection | DOAJ |
| description | Due implementation of debtors’ financial solvency assessment models by Ukrainian banks with the aim of calculating the probability of their default (PD) is the next step towards the integration of Ukrainian banking system into global banking community, convergence of methodical approaches to assessing the credit risk with standards of international practice, possibility of using IRB-approach (an approach based on internal ratings) for calculating the regulatory requirements to capital adequacy.The analysis of approaches to bank credit portfolio segmentation according to types of debtors and debtors’ financial solvency assessment models, depending on the performed segmentation and accumulated bank statistical data, from the point of view of its suitability for Ukrainian banks, will enable the banks to choose the most suitable ones for implementation taking into account nature and complexity of operations performed.Such approaches will be more adapted to minimum capital requirements, simultaneously agreeing with national supervisory priorities. |
| first_indexed | 2024-04-13T01:17:59Z |
| format | Article |
| id | doaj.art-9b7e415e22814640a631f7729430d3f9 |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-04-13T01:17:59Z |
| publishDate | 2018-05-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-9b7e415e22814640a631f7729430d3f92022-12-22T03:08:52ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742018-05-0113211110.21511/bbs.13(2).2018.0110380Defining the probability of bank debtors’ default using financial solvency assessment modelsYana Kuznichenko0Mariia V. Dykha1Natalia Pavlova2Serhiy Frolov3Olha Hryhorash4Chief Expert of the Methodology Department, National Bank of UkraineDoctor of Economics, Professor, Professor of the Department of Economics of Enterprise and Entrepreneurship, Khmelnytskyi National UniversityPh.D. (Law), Senior Lecturer of the Department of Criminalistics, Forensic Medicine and Psychiatry, State University of Internal AffairsDoctor of Economics, University of Customs and Finance, DniproPh.D, (Economics), Senior Lecturer, Department of Finance of Business Entities and Insurance, University of Customs and FinanceDue implementation of debtors’ financial solvency assessment models by Ukrainian banks with the aim of calculating the probability of their default (PD) is the next step towards the integration of Ukrainian banking system into global banking community, convergence of methodical approaches to assessing the credit risk with standards of international practice, possibility of using IRB-approach (an approach based on internal ratings) for calculating the regulatory requirements to capital adequacy.The analysis of approaches to bank credit portfolio segmentation according to types of debtors and debtors’ financial solvency assessment models, depending on the performed segmentation and accumulated bank statistical data, from the point of view of its suitability for Ukrainian banks, will enable the banks to choose the most suitable ones for implementation taking into account nature and complexity of operations performed.Such approaches will be more adapted to minimum capital requirements, simultaneously agreeing with national supervisory priorities.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10380/BBS_2018_02_Kuznichenko.pdfcausal financial solvency assessment modelscredit portfolio segmentationheuristicprobability of default (PD)statistical |
| spellingShingle | Yana Kuznichenko Mariia V. Dykha Natalia Pavlova Serhiy Frolov Olha Hryhorash Defining the probability of bank debtors’ default using financial solvency assessment models Banks and Bank Systems causal financial solvency assessment models credit portfolio segmentation heuristic probability of default (PD) statistical |
| title | Defining the probability of bank debtors’ default using financial solvency assessment models |
| title_full | Defining the probability of bank debtors’ default using financial solvency assessment models |
| title_fullStr | Defining the probability of bank debtors’ default using financial solvency assessment models |
| title_full_unstemmed | Defining the probability of bank debtors’ default using financial solvency assessment models |
| title_short | Defining the probability of bank debtors’ default using financial solvency assessment models |
| title_sort | defining the probability of bank debtors default using financial solvency assessment models |
| topic | causal financial solvency assessment models credit portfolio segmentation heuristic probability of default (PD) statistical |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10380/BBS_2018_02_Kuznichenko.pdf |
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