CREDITING OF INTERDEPENDENT BORROWERS AS A FACTOR OF RISK CONCENTRATION OF CREDITING PORTFOLIO

Abstract

Objective: To elaborate the approach to identification and estimation of connections between borrowers from commercial bank. Results: Basing on the analysis of the Russian and foreign approaches to the research of juridical and economic interdependence of economic subjects, as well as by viewing the Russian banking and court practice, the author defines the drawbacks of the existing means of revealing and estimating the connection factor. 22 criteria are suggested, which allow to conclude about the existence of mutual connections between companies. The criteria can also be used to determine the degree of closeness (strength) of such connections. Scientific novelty: New principles of classification of interdependent borrowers’ groups by the strength of connection are defined. Unified criteria are proposed for identification of connection factor and borrowers’ grouping with juridical, economic and other features. Practical value: The obtained results can be efficiently used to estimate the crediting operations risk both at the stage of the client’s application consideration and in the process of servicing a number of contracts constituting the bank’s crediting portfolio.