Account of foreign economic activity factor in determining the entity creditworthiness
Journal Title: Проблеми теорії та методології бухгалтерського обліку, контролю і аналізу: міжнародний збірник наукових праць - Year 2019, Vol 42, Issue 1
Abstract
The article is devoted to the development of methodology for assessing the level of credit risk of borrowers-legal entities. The authors analysed the current methodology for determining the credit risk size under active banking operations used by Ukrainian banks. By analysing the statistical data on the share of problem loans in the loan portfolios of Ukrainian banks, it was established that the implementation of this methodology did not lead to a significant change in the share of problem loans in the banking system, and, consequently, needs further improvement. The article proposes the development of an approach to credit, which at the methodological level should be expressed through a set of interrelated quantitative and qualitative indicators, which in their unity determine the degree of creditworthiness of a potential borrower. The authors suggest taking into account the factor of foreign economic activity, as having a significant impact on the financial state of the enterprise, when calculating the integral indicator of the financial status of the debtor – a legal entity by including the indicator «the share of operating profit from foreign economic activities to depreciation in the total volume of sales». In addition, in the conditions of stable tendency of hryvnia devaluation, ranges of values of the debtor PD coefficient – the legal entity-exporter is proposed to be taken into account for the minimum values, and the legal entity-importer – for maximum values in determining the size of credit risk on an asset on an individual basis. The submitted offers will allow to adjust the level of credit risk of the borrower-legal entity that carries out foreign economic activity, depending on the importance of its impact on the financial result of the enterprise.
Authors and Affiliations
O. M. Petruk, O. S. Novak, T. G. Markovych
Keywords
Related Articles
- EP ID EP565457
- DOI -
- Views 76
- Downloads 0
Accounting in «cloud»: transition procedures and adaptation of information systems of enterprises
The research determines the need for studying the «cloud» technologies as the method of saving company’s resources and increasing the efficiency of processing accounting data. The study defines the concept of the «cloud»...
The influence of corporate governance international models on the development of accounting practice
The essence of the concept of «corporate governance model» has been considered. The main characteristics of international models of corporate governance have been analyzed. The expediency of using the concept of domestic...
Ecological marketing as instrument of steady development providing
Anthropogenic influence upon environment and its results cause ecological disbalance of a natural system, destroy of biological connection between a human being and nature. That’s why it’s necessary to protect environmen...
Procedural approach to establishing cause-consequence relations of problem situations of marketing activity of enterprises on the basis of heuristic techniques
In article the research has been carried out and in result it has been found out that the main focus of theorists and practitioners is on the process of overcoming the problems of a company while the logic of their devel...
Organizational provision of management of bank financial and economic activities
The article deals with the organizational support of the process of management of financial and economic activities of banking institutions. In particular, the activity of one of the main divisions of the Treasury Bank,...