THE MAIN METHODS FOR CREDIT RISK MANAGEMENT BASED ON THE EXPERIENCE OF INTERNATIONAL BANKING SYSTEMS

Abstract

The article considers the essence of credit risks, as well as the main models for managing them, based on international experience. Undoubtedly, the topic of our study is quite relevant, since at the current level of the world economy and the banking system development, credit risks still take place. Accordingly, any methods that are both directly and indirectly related to the mitigation of certain actual or probable, expected banking threats will always be in great demand. In the course of our research, we studied three main international standards for credit risk management, in particular, COSO-ERM, RMS, and Basel II standards.