Credit Process Administration in Commercial Banks' Retail Business

Credit operations - one of the most profitable banking business. It forms the main profit for banks and ensures functioning of the credit institution. However, lending remains the main source of risk. Organized credit works lend effective help to banks to not lose their stability at any period of market development. More over it determines the results of credit activities of the Bank. Quality of the loan portfolio is the main indicator of the bank’s credit activity in the case of efficiency, which is expressed in the optimal ratio of its profitability, credit risk and liquidity . Furthermore,the quality of the loan portfolio is influenced by its structure. Each commercial Bank has own experience, which have to take into account. Especially, for approaches and its individual system of relations with the borrower. Nevertheless, it is obvious that there are constant General organizational foundations, that allow banks to significantly strengthen their business relationships with customers and improve the quality of lending. Effective and well-constructed credit administration helps to reduce overdue debts, as a result it can minimize losses and increase profits from active operations.