Measures taken to ensure that overdue loans do not become problematic - Statement


October 29, Fineko/abc.az. The financial indicators of banks, about which Financial Market Supervision Authority (FIMSA) reported some time ago, show that some banks still have overdue loans.

We asked what preventive measures have been taken in banks to ensure that overdue loans do not become problematic later, given the sensitivity of this issue.

We addressed with this question first of all to PASHA Bank.

In response to ABC.AZ’s inquiry the Bank replied that PASHA Bank has invested in an effective credit risk management system for many years, that directly affects the quality of the Bank's loan portfolio.

Thus, the issuance of loans at PASHA Bank is regulated by certain processes and tools.

"The Bank determines the credit policy with taking into account the experience of many years and a certain strategy. The target mass of customers regulated by the credit policy is also determined in accordance with Bank's “appetite" for risk and is strictly observed in the process of giving loans. In addition, Bank's lending is also monitored by the relevant departments at certain stages and the final decision is made by the relevant authorities. The established limits are regularly monitored by the Monitoring Department for the purpose of spending on purpose, timely repayment and management of loans in accordance with the terms agreed between the parties. The professionalism of Bank's personnel, especially its employees involved in the process of loan giving, plays an important role," the Bank said.

By Elmir Murad