New Approach to Evalution of Risk Loans

Jaroslav Schönfeld

Ekonomika a Management, 2008, vol. 2008, issue 4

Abstract: During the last few years the Czech Republic has witnessed a great boom in the area of a problematic and irrecoverable credit settlement. Late and substandard payments have become rather a tradition in the Czech way of doing business. Consequently the solution by selling receivables to the third party is often resorted to. The thesis examines the system of the internal debt evaluation in banking sector for the purpose of sale. In the conclusion it presents a draft methodology with three different modifications: The first modification is the value of the credit based on the debtor's ability to pay using the risk parameters such as the probability of default, the loss given default and the recovery rate of the credit (calculating according to BASEL II rules). The second modification is the value of the credit determinated by a simulation of the bankruptcy/insolvency proceeding. The third modification is the value of the credit derived from the worth of the collateral while using the met

Keywords: Rizikový úvěr; ocenění; pravděpodobnost selhání; míra návratnosti; realizace zajištění; Risk loans; insolvence; bankruptcy; konkurz; valuation (search for similar items in EconPapers)
JEL-codes: G12 G33 (search for similar items in EconPapers)
Date: 2008
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