The loan portfolio means the aggregate of the balances of the amount of the principal debt on credit active operations at a certain date. In turn, all major risks are interconnected with the quality and structure of the loan portfolio.
Instructions
Step 1
Calculate your gross loan portfolio. It can be determined by summing up the prolonged, urgent, overdue debt, which is available for all active credit operations.
Step 2
Divide the loan portfolio by types of clientele into interbank and client. Interbank loan portfolio means the amount of loan investments that are held in other banks for a certain date. The loan client portfolio should include the amount of debt owed by other clients - commercial state-owned enterprises, individuals, the private sector, financial non-banking organizations.
Step 3
Determine the value of the net loan portfolio. It can be calculated as the difference between the gross portfolio and the amount of reserves aimed at covering all kinds of losses on various lending operations. This value represents the amount of credit investments that can actually be returned to the bank at the date in question.
Step 4
Calculate the size of your risk-weighted loan portfolio. Here it is necessary to take into account various criteria, the fundamental of which are: who is the counterparty to the credit transaction, whether he has an external rating assessment, the method of ensuring the fulfillment of obligations under the current credit agreement. For each specific group of credit risk, the amount of the provision for covering all kinds of losses created for this group is deducted from the outstanding balance. Then the amount received must be adjusted for the specified degree of risk. In this case, the sum of the resulting total values for all available groups of credit risk will represent the value of the risk-weighted loan portfolio.
Step 5
Please note that the loan portfolio must include all types of loans provided to customers (individuals and legal entities) and other similar operations (executed bank guarantees, accounting for commodity bills, overdrafts, factoring).
