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Credit risk analysis at the level of an operative branch of the bank


  • Imola DRIGA

    () (University from Petrosani, Romania)

  • Dorina NITA

    () (University from Petrosani, Romania)

  • Codruta DURA

    (University from Petrosani, Romania)


Credit risk is most simply defined as the potential that a borrower/counter party will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maintain credit risk exposure within targeted limits so that the bank can maximize risk adjusted return. In such cases, the account of the customer inevitably becomes overdue, the granted loan turns into a non-performing credit and the lending bank registers a decline of its profit. In order to prevent such situations, commercial banks must take certain measures of reducing credit risk. In order to assess the exposure to credit risk, we can operate with a system of indicators based on information obtained from financial statements. The paper presents how the exposure to this type of risk can be evaluated at the level of an operative branch of the bank.

Suggested Citation

  • Imola DRIGA & Dorina NITA & Codruta DURA, 2010. "Credit risk analysis at the level of an operative branch of the bank," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(2), pages 378-390, December.
  • Handle: RePEc:rom:econmn:v:13:y:2010:i:2:p:378-390

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    risk management; financial risks; credit risk; overdue credit.;

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill


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