Accounting and Control of Lending Operations in Commercial Banks

<p>The main transactions in banking activities are lending operations. Performance of such transactions scale up exposure of banks. So in order to minimize it banks should accumulate loan loss provision. If banks do not obey such requirements and allocate funds in subprime-related assets the likelihood of bank insolvency will increase. In order to prevent it banks should control lending operations on a regular basis. Lack of methodology secured in legislation and lack of scientists&rsquo; attention determines the relevance of the chosen domain.</p><p>The aim of the study is to examine special aspects of accounting credit operations and to develop methodology for controlling these operations in the bank.</p><p>There are such parts in the study as introduction, three chapters, conclusion, bibliography and applications.</p><p>In the introduction the relevance of the research topic is revealed, goals and objectives of the study are set, the subject and the object are specified, the methodological framework is indicated and practical applicability is revealed.</p><p>The first chapter is devoted to examining the goals, objectives and legal regulation of accounting and control of lending operations. Also, it reflects the basic concepts of lending, the analysis of the specialized literature. The second chapter focuses on the organization and accounting in the bank. The organizational and economic characteristics of the bank and documenting of credit transactions are considered. In the third chapter, attention is paid to control of bank lending. The technique of controlling credit operations is described in detail and the results of its testing are presented. Also it is taking into account the possibility of increasing the efficiency of decision-making by automating the process control. In conclusion, it is described how fulfilled the goals and objectives, which were set at the beginning of the work.</p><p>The research study will be of primary significance to commercial banks in particular to board of directors, senior management team and internal control service. Recommendations derived from the results of the work can be used to improve business processes.</p>