The concept of “bank portfolio” and its meaning

The composition of the bank's own portfolio is characterized by the state of all aspects of the assets and liabilities of the balance sheet. Therefore, the banking portfolio is understood as the totality of all banking assets and liabilities as of the corresponding date. It is formed through active and passive operations carried out by a credit institution.

The main types of banking portfolio are:

• loan portfolio;
• cash portfolio;
• various securities portfolios;
• investment portfolio;
• portfolio of deposits and other attracted funds, etc., depending on the attraction or placement cash.

Note 1

The Bank of Russia has predetermined the list of operations (portfolios) of credit institutions, i.e. This banking portfolio, consisting of all concluded and functioning agreements on attracting and placing funds.

When calculating the efficiency of banks, the quality of active and passive portfolios is assessed.

A sharp decline in portfolio quality leads to bank bankruptcy. And, conversely, correct and rational management of assets and liabilities contributes to high margins, profit growth and increased profitability.

Justified market strategy and tactics of attraction and placement banking resources to achieve maximum profitability, liquidity and reduce risks, leads to the formation of an optimal banking portfolio, and its management is assessed as effective.

The structure of the banking portfolio is understood as the ratio of different groups of assets and liabilities of the bank to the total value of the balance sheet currency.

The concept and composition of the portfolio for active banking operations

The bank's active operations generate more than 90% of its total income.

The banking portfolio by active operations can be classified depending on the decrease in income in world practice as follows:

• The first place is taken by the loan portfolio,
• second – a portfolio of securities of third parties (in other interpretations – investment, stock, trading, etc.),
• third – cash portfolio, including different types currencies
• fourth – portfolio of other assets.

Definition 1

The bank's loan portfolio is loans, loan and equivalent debt, i.e. The loan portfolio includes not only the loan component, but also other bank claims that are of a credit nature.

The loan portfolio includes various types credit operations, which differ by subjects and objects of lending.

The functions of the loan portfolio from the perspective of the banking portfolio must be assessed from the perspective of expanding and diversifying the income base of banks, increasing financial stability, reducing the risks of active operations and ensuring high rates of income growth.

The loan portfolio is part of the banking portfolio, but has its own specific features (Fig. 1).

Figure 1. Main characteristics of the banking and loan portfolio. Author24 - online exchange of student work

Based on their goals, banks form loan portfolios of certain types. The portfolio type represents its characteristics based on the relationship between return and risk.

Figure 2. Types of loan portfolio. Author24 - online exchange of student work

The loan portfolio can also be classified depending on the types of loans included in it (Fig. 3).

Figure 3. Types of loan portfolio. Author24 - online exchange of student work

Thus, the loan portfolio can be divided into two main areas: by type (dependence on the risks and income of the portfolio); by type (depending on the structure and types of loans prevailing in the structure of the loan portfolio).

The investment portfolio of a commercial bank is a portfolio of securities, i.e. activities of a credit institution related to investing funds in securities on one’s own behalf, on one’s own initiative and at one’s own expense for the purpose of making a profit.

Definition 2

The investment portfolio of a credit institution is a purposefully formed set of financial instruments that are intended for making financial investments in accordance with the approved investment policy.

Currently, for legal entities, in addition to long-term loans, it is important financial instrument investments are securities, for which the definition of “investment portfolio” is identified with “stock portfolio” (or “securities portfolio”).

Based on the purpose of generating investment income, a distinction is made between the bank's income investment portfolio and the growth portfolio.

The banking income portfolio is formed according to the criteria of achieving the maximum level of investment income in the current period and does not depend on the long term.

The banking growth portfolio is formed according to the criteria of maximum growth of investment profit in the long term and does not depend on the current period.

The concept and composition of a bank’s portfolio of passive operations

When carrying out passive operations, a banking portfolio of passive operations is formed. The sources of these portfolios are own, borrowed and attracted funds.

The first source creates a portfolio own funds.

The next two form the second large portfolio - a portfolio of attracted resources (deposit portfolio, including a portfolio of inter bank loans and deposits received).

The importance of the bank's own resource portfolio lies in maintaining its stability. At the expense of own funds are formed reserve funds and this is one of the main sources of investment in long-term assets.

Definition 3

A portfolio of deposits and other attracted funds is a portfolio that allows you to purposefully achieve such goals as ensuring the necessary liquidity, obtaining current investment income and minimizing the level of investment risks.

The specificity of a credit organization, as one of the types of commercial organization, is that the overwhelming amount of its resources is formed not from a portfolio of its own funds, but from a deposit portfolio, which includes its own debt securities issued by banks.

In this article we will explore what a loan portfolio is, what types of portfolio are most common in the business environment, and how it should be formed and analyzed.

The loan portfolio is the totality of a bank's assets obtained as a result of issuing various loans to clients. If we talk in simple words, then the loan portfolio is all the loans that were issued to borrowers over a certain time or by the reporting date.

Monitoring and analyzing the state of the loan portfolio is very important, because... The capitalization of the bank depends on the structure of borrowers and other factors. In addition, the loan package, like any other asset, can be sold. And the size of such a transaction directly depends on the type of borrowers, total cost portfolio, probability of debt repayment, etc.

Contrary to popular belief that a portfolio includes not only the debt itself, but also the interest on it, this is actually not the case. In the generally accepted sense, only the “net” amount that will be received after the clients return the “loan body” is included in the loan portfolio. Accordingly, all interest, fines, penalties, commissions and other related profits are not included in the portfolio.

Types of loan portfolios

So, a bank’s loan portfolio is the totality of borrowers’ debts to the bank. But this is too inaccurate: borrowers can be different, and the real value of the portfolio directly depends on this.

After all, if in total the bank’s borrowers are not the most trustworthy people, then the likelihood of returning all debts is not so high. Conversely, reliable banks have reliable customers, which implies high chances for full repayment of debts.

Based on this parameter, two main types of portfolios are formed: neutral and risky. There is also a third type, which occupies an intermediate position between these two types - the so-called. " mixed”, but most often the main client base still gravitates towards integrity or dishonesty. Accordingly, there are very few portfolios classified as “mixed” on the market.

The neutral type of portfolio is the most expensive: borrowers regularly, timely and in full pay not only the principal amount of the debt, but also all related interest, fines and commissions. A risky portfolio, on the contrary, contains loans issued to not the most reliable clients.

The riskier the portfolio, the lower its value. For example, it is not uncommon for Russian microfinance organizations to agree to sell a very risky portfolio with a total debt of over 3 million rubles to collection offices for 300-500 thousand rubles.

Therefore, it is important to think not only about how to increase the loan portfolio, but also about the structure of the debts and the riskiness of the package - the offer price no less depends on this.

Formation order

The procedure for forming a loan portfolio of a commercial bank is carried out in several stages:

1. First, an analysis of factors related in one way or another to the level of demand must be carried out;
2. Credit potential is formed and increased;
3. The predicted potential must match the structure of loans that will later be issued to end clients;
4. Analysis of data on loans issued. It is especially important to study the client’s behavior when repaying loans;
5. Conducting an assessment of the quality and effectiveness of the resulting portfolio;
6. If necessary, the company can adjust the efficiency and quality of the loan package. To do this, an analysis must be carried out, and then measures must be taken to eliminate the reasons that led the bank to the poor performance of the portfolio. The most common measure in such a situation is to change the terms of the loan. For example, they can become stricter, thereby increasing the reliability of the portfolio.

Control

Ultimately, the two main goals of managing a bank's loan portfolio are to increase the profitability of the enterprise while simultaneously reducing risks. Accordingly, all activities carried out in the process of managing the formed loan package should be aimed specifically at achieving these two goals. For example, such events include:

• Portfolio diversification by groups of borrowers. That is, to reduce risks and increase profits, part of the loans can be issued to another category of borrowers who are not generally represented in the portfolio;
• Administrative measures: the creation of a market analysis committee, wider or, conversely, narrow delegation of powers along the vertical hierarchy of the enterprise; differentiation of departments by type of loans, etc.;
• Increased control over clients. For example, the selection process for issuing a loan may be tightened; a personal system for assessing each client has been introduced, etc.;
• Development of marketing proposals aimed at a general increase in the customer base. For example, an advertising campaign may be carried out or a department may be developed that creates and offers clients individual offers that are highly tailored to the needs and desires of this category of borrowers. Among other things, successful marketing also solves the question of how to increase the bank’s loan portfolio.

Analysis

As is the case with types of loans, analysis of the loan portfolio of a commercial bank is also divided into two types - “quantitative” focuses on the total amount of loans issued, and “qualitative” takes into account, first of all, the riskiness of the loan package.

Quantitative analysis is carried out according to the following algorithm:

1. First, you need to determine how many loan agreements were concluded for each specific loan program over a specified period of time;
2. All loan agreements for all programs are considered;
3. Then you need to calculate the total amount issued for all programs and for each in particular;
4. The obtained information is compared with the data for similar period previously;
5. The analyzed data is compared with the enterprise plan.

The main task of quantitative analysis is to determine the most popular credit program. Guided by this information, a popular program can be made your competitive advantage; it is also what the emphasis should be on when conducting advertising campaigns.

Quantitative analysis identifies the least profitable and most risky areas that should either be restructured or eliminated altogether.

Qualitative analysis differs slightly in the algorithm of actions:

1. First, the percentage of problem loans from the total number of all issued loans is calculated;
2. The total amount of overdue payments is calculated;
3. A graph is drawn up showing the dynamics of total overdue debt over a specified period of time;
4. Based on this information, a conclusion is drawn about which areas should be prioritized, which ones need reform, and which ones need to be eliminated completely.

Qualitative analysis is primarily aimed at determining the riskiness of the package, so it is perfect for those enterprises who are thinking about the imminent sale of this asset.

Sale

A sale most often means the transfer of debt obligations to another organization. In this case, the borrowers simply become indebted not to the organization that issued the loan initially, but to the company that bought the debt obligations.

The successful sale and cost of the package depend on its general indicators (volume of debt, volume of loans issued, average value issued loan, etc.); riskiness of the package; payment statistics; correspondence credit potential with the loan structure.

Therefore, for example, a package worth 1 million rubles from Sberbank can easily be sold for 1.2 million rubles, because the riskiness of the package will be minimal, and the interest, on the contrary, will be high. In contrast, MFO portfolios are worth only 20-30% of the total value of issued debts. This happens because MFO managers sell debt obligations only in very critical situations, where the chance of repaying the debt is minimal.

Bankruptcy

A bank has its own creditors - other banks, the state, etc. And, of course, even commercial banks often find themselves in situations where it is simply impossible to repay the debt on time due to circumstances.

If the Central Bank of the Russian Federation declares a bank bankrupt, mandatory the loan portfolio will be sold to other organizations. This will happen either by the will of the bankrupt bank itself, or without its consent at the auction. In this case, all debtors of the bankrupt bank will simply have to repay the debt in another bank - a corresponding notification must be sent to all borrowers.

Brief summary of the article

The package includes the amount of all loans issued to clients and not yet repaid. Because borrowers are different, such portfolios can be risky and neutral. To create a loan package, you must first analyze and develop credit programs, and then carefully examine the dynamics of loans issued.

The loan portfolio is the total amount of debt that exists as of a certain date to the bank among its clients.

It unites the totality of all contracts, or rather the amounts under them without taking into account interest rates, which can be obtained as net profit institutions.

Simply put, the loan portfolio consists of those funds that must be received as a return on loans issued.

It can be sold either in full or in part, redistributed and carried out various manipulations.

Types of loan portfolios

Among the current types of loan portfolios are:

• neutral. This type of portfolio is the most expensive; it contains contracts of those who regularly pay their loans;
• risky loan portfolio. Problematic contracts are entered here.

Sale of loan portfolio

If the loan portfolio has been sold to another bank, borrowers must be notified about this. This is done by the bank that purchases the portfolio.

He, at his own discretion, calculates the types of credit risks and their percentages for problematic or promising agreements.

There are loan portfolios that can be redeemed without the bankruptcy of one of the institutions.

In any case, clients are notified by mail or SMS message.

You need to pay the amount of money under the agreement to another bank. Many fear that the amount of interest rates will rise, and the size monthly payment increases.

In fact, it all depends on the terms of the contract that you once concluded. Theoretically, banks have the right to deposit, but in practice this happens quite rarely.

The totality of loan investments available on a certain date represents the bank’s loan portfolio, which includes interbank loans and loans provided to individuals and legal entities, or interbank and client loan portfolios.

The main source of information about the state of a bank’s loan portfolio is its balance sheet. The classification on the basis of which the bank’s balance sheet is built gives an idea of ​​the composition and structure of credit investments by counterparty and type of loan.

Bank clients receiving a loan, or entities credit relations, non-banking financial institutions, commercial organizations, non-profit organizations, individual entrepreneurs, authorities public administration and individuals.

Credit operations mean the following operations of the bank with clients: short- and long-term loans, factoring, leasing, provision of funds to clients on repo terms, transfer of funds as security for the fulfillment of obligations, fulfillment of obligations by the bank, provision of funds for the sale of bills of exchange with deferred payment, loans.

The type of operation is associated with the object of the loan investment, which determines the purpose for which the loan is provided.
There are loans that are provided for purposes related to the creation and movement of current assets, and loans that are provided for purposes related to the creation and movement of long-term assets. As a rule, loans that involve the formation of current assets are classified as short-term, while loans that involve the formation non-current assets- to long-term. At the same time, dividing loans into short-term and long-term does not necessarily reflect the object of lending, but can only indicate the term of the loan. So, to short-term loans include those for which the deadline full repayment established by the loan agreement does not exceed one year, as well as loans provided under revolving credit lines and when lending to cover overdrafts, except for loans with a repayment period of at least part of the loan over a year originally established in the loan agreement. Long-term loans include loans with a repayment period of more than one year.

Factoring is lending against the assignment of a monetary claim, i.e. the object of credit relations in this case is monetary obligations debtor (invoices for goods shipped, accounts receivable).

Leasing reflects the relationship that arises between the bank that purchases the leased item, the supplier from whom this item is purchased, and the lessee to whom the item is transferred under lease terms. The lessee pays the bank lease payments, including interest for the use of the leased asset - various property that acts as an object of credit relations.

Loans are provided to individuals for consumer purposes and for real estate financing.
TO credit operations banks, the object of which are securities, includes the provision of a deferment to clients for the payment of bills of exchange purchased by them, including when they are sold on the secondary market.
Transactions on obligations fulfilled by the bank to the client, for example, acceptance, aval, endorsement of bills, guarantees, require the client to return the funds transferred for him. The object of the Operation is the obligation fulfilled by the bank.

Operations for granting loans are classified as credit operations, although they are not considered as banking operations due to the nature of the loans. The latter can be provided by all subjects of economic relations without complying with banking legislation, but with prerequisite: issued only at the expense of one’s own funds, but not at the expense of attracted sources. Therefore, banks, providing, for example, funds to their employees under a loan agreement and on more preferential terms than loans, exclude their amount from the calculation of the bank’s regulatory capital.

The totality of all the above loan groups as of a certain date is the bank’s gross loan portfolio.

As part of the loan portfolio, a retail portfolio is distinguished, which represents the totality of the bank’s claims on loans for consumer needs individuals and credit debt individual entrepreneurs. At the same time, the total amount of claims on loans from one client should not exceed an amount equivalent to 50 thousand euros and 0.5% of the total retail portfolio.
The assessment of the loan portfolio includes quantitative and qualitative aspects.

For quantitative assessment, the composition and structure of the loan portfolio is determined according to the following criteria: type of counterparty, industry affiliation of the client, type of credit transaction, object of lending, type of currency, method of ensuring fulfillment of obligations under loan agreement, the initial loan term and the period remaining until the loan is repaid.

A qualitative assessment takes into account compliance with loan terms and the level of credit risk, involves determining the net loan portfolio and the share of problem debt in its composition.

The classification of the gross client loan portfolio by compliance with loan terms reflects the nature of the debt. There are urgent, extended and overdue debts.
Urgent debt refers to debt that has not yet matured. Attribution of debt to the account for recording prolonged debt, i.e. changes to the initial terms established in the loan agreement are possible for valid reasons. Attribution of debt to the account for accounting for overdue debt means failure to repay the entire loan or part of it on the due date of loan repayment.

Debt classified as overdue or prolonged is problematic. Part of the urgent debt can also be considered as such if there are grounds for creating a reserve for possible losses in 3-5 groups. The difference between the gross loan portfolio and the created reserve for problem debt is the bank's net loan portfolio.

The size, composition and structure of the loan portfolio is the basis for calculating the main standard indicators bank, such as indicators of the adequacy of the bank’s equity capital, liquidity and compliance with the maximum level of risk for the bank’s debtors.

Credit operations are the most profitable item in the banking business. This source generates the bulk of net profit, which is transferred to reserve funds and used to pay dividends to the bank's shareholders. The structure and quality of the loan portfolio are associated with the main risks to which the bank is exposed in the process of operating activities - liquidity risk (the bank’s inability to repay obligations to the depositor), credit risk(borrowers’ failure to repay principal and interest on the loan), interest rate risk, etc. Therefore, careful selection of loan recipients, analysis of loan conditions, constant monitoring of financial condition the borrower, his ability (and willingness) to repay the loan is one of the fundamental functions of the bank’s credit departments. The most important issue for any bank is the formation of an optimal loan portfolio as one of the main areas of placement financial resources, as well as effective loan portfolio management.

Thus, the bank's loan portfolio is the totality of debt balances on active credit operations as of a certain date. The client loan portfolio is its integral part and represents the balance of debt on credit transactions of the bank with individuals and legal entities as of a certain date. There are various classifications of the loan portfolio, among which one can find the division of the portfolio into gross (the total volume of loans issued by the bank at a certain point in time) and net (the gross portfolio minus the amount of reserves to cover possible losses on credit operations).

A quantitative characteristic is given by the gross loan portfolio, which is determined by summing up urgent, extended, overdue debt for all active credit operations.

Based on the type of clientele, the bank’s loan portfolio can be divided into client and interbank portfolios. The interbank loan portfolio is a collection of loan investments in other banks as of a certain date. The client loan portfolio includes the loan debt of other clients - state-owned commercial enterprises, the private sector, individuals, and non-bank financial organizations.

Client and interbank loan portfolios differ significantly in the degree of risk, level of profitability, and types of loans included in the portfolios. Placing funds on loans in the interbank market has a lower risk of non-repayment of the loan than lending to customers. At the same time, the income received by the bank in this market is usually less than when lending to clients. Consequently, when forming a loan portfolio, a bank needs to interconnect the concepts of risk and profitability, finding the optimal combination for at this moment time and specific situation. The portfolio approach involves maximizing utility, i.e. increasing the profitability of credit investments while minimizing risks.

The client's loan portfolio by type of borrower is divided into business, representing the balance of debt on credit transactions with legal entities, and personal, representing the balance of debt on credit transactions with individuals. There is also a retail portfolio - the totality of the bank’s requirements for individuals And individual entrepreneurs, meeting certain conditions.

Loan investments that make up the business client loan portfolio are classified:

• - by type of counterparty: for loans to non-bank financial institutions, commercial and non-profit organizations, individual entrepreneurs, government bodies;
• - by type of credit transactions: for loans, factoring, leasing, transactions using bills of exchange, funds provided under Repo transactions, funds transferred as security for the fulfillment of obligations, obligations fulfilled for the client;
• - by client’s industry: industrial loans, agriculture, construction, trade and catering, housing and communal services;
• - by the method of ensuring the fulfillment of obligations under a loan agreement: secured by one or another type of collateral, guarantees, sureties and those without security (trust, blank).

Based on the time of origin, the bank’s loan portfolio is divided into potential and real.

By type of currency, the bank’s loan portfolio is classified into a portfolio in national currency and a portfolio in foreign currency.

The classification of the loan portfolio by the nature of the debt reflects compliance with loan terms. Based on this, a portfolio of urgent, extended and overdue debt is distinguished. Urgent debt refers to those debts whose repayment period, in accordance with the agreement, has not yet arrived. Extended debt is debt for which the bank, if there are valid reasons, extends the time of using the loan. If the borrower does not have enough funds to fully fulfill his obligations to the bank, the entire outstanding loan attributed to overdue debt.

From a qualitative standpoint, the net loan portfolio and the risk-weighted loan portfolio stand out. The net loan portfolio is calculated by subtracting from the gross portfolio the amount of reserves for possible losses on credit transactions, reflected in the second class liability accounts of the daily balance sheet. It represents the amount of loan investments that can actually be returned to the bank on the analyzed date.

To determine a risk-weighted loan portfolio, various criteria are taken into account, the main ones being: the counterparty to the credit transaction, whether it has an external rating assessment, the method of ensuring the fulfillment of obligations under the loan agreement, the nature of the debt. From the balance of debt for each credit risk group, the amount of the reserve created for this group to cover possible losses is subtracted and the resulting amount is adjusted to the established risk level. The sum of the results obtained for all credit risk groups represents a risk-weighted loan portfolio.

Types of loan portfolios:

- risk-neutral loan portfolio characterized by relatively low risk indicators, but, at the same time, low profitability indicators, and a risky loan portfolio has an increased level of profitability, but also a significant level of risk. - the optimal loan portfolio most closely matches the composition and structure of the bank’s credit and marketing policies and its plan strategic development. The optimality of the bank's loan portfolio makes it possible to implement the tasks of certain economic behavior assigned to the bank. When forming an optimal loan portfolio, it is necessary to take into account the values ​​of the main indicators that characterize the specific design of the loan portfolio, which must be achieved or maintained within certain boundaries. - a balanced loan portfolio is a portfolio of bank loans, which, in its structure and financial characteristics lies at the point of most effective solution risk-return dilemmas. An optimal portfolio does not always coincide with a balanced one: at certain stages of its activities, a bank may, to the detriment of the balance of its loan portfolio, issue loans with lower returns and with greater risk. This is usually done with the aim of strengthening a competitive position, conquering new niches in the market, etc. - loan portfolio of the head bank and loan portfolios of branches; - a portfolio of loans to legal entities (business loan portfolio) and individuals (personal loan portfolio), as well as a portfolio of loans to other banks (interbank loan portfolio); - portfolio of rubles and portfolio foreign currency loans etc.

The classification of the loan portfolio by type is associated with the division of the portfolio into homogeneous groups of loans, so they can be represented as sub-portfolios, which will also be classified based on the classification of loan types. This allows not only to evaluate the structure of the loan portfolio and determine its type and variety, but also makes it possible to assess the quality of each portfolio.