Credit risk is one of the main risks in banking and the way a bank manages credit risk is critical to its performance. Identification and assessment of credit risk is therefore the basis for effective risk management. In many countries banks are bound by law to assess the creditworthiness of their debtors at least once a year. Most banks use an internal rating system to comply with these regulations.
The objective of bank ratings is to differentiate the risks inherent in a loan portfolio. Rating systems measure credit risk and distinguish individual debtors, credits and groups of credits by the risk they pose. In addition, they should indicate the individual drivers of default risk highlight changes and enable banks to monitor trends in risk levels.
Date: 13th & 14th December 2018
Time: 9:
