Formation of a method for determination of a commercial credit bank rating

Abstract

© 2019, Research Trend. All rights reserved. The paper discusses the issue of forming a methodology for determining a credit rating for commercial banks through an integrated assessment method. The necessity of including a system of quantitative indicators characterizing capital, asset quality, quality of attracted funds, organization management, risk exposure, profitability and liquidity of the bank, as well as a system of other quality indicators (indicator of sales points, development of the bank’s territorial network by type of its structural divisions, bank status) is substantiated. The system of indicators included in the proposed method for determining a credit rating for commercial banks was formed based on an analysis of economic literature, testing factors for multicollinearity, as well as through one-dimensional analysis of variance. This methodology was tested on the example of 5 Russian banks (LLC Kamcom bank, JSC Raiffeisen bank, JSC AKB Tender-Bank, PJSC Sovcom bank, and JSC Gazprom bank), the results of the calculations reflected the current situation in the banking market, which confirms the possibility of its application in practice. It was also determined that, given the current economic conditions, it would be easier for large banks to “get” a credit rating using quality indicators, while small and medium-sized credit organizations should focus on quantitative indicators.