Loan Office Instruments Protect from Loan Defaults
On November 2009, the Seminar “Effective Risk Evaluation and Debt Management” at which the banking market participants shared their experience in using loan office instruments was held. Among the participants, there was the Head of Transaction Risk Management Andrey Ignatov. He presented advantages of using loan office products.
Platinum Bank started its cooperation with CJSC “First Ukrainian Office of Credit Histories” in 2006. During the period of cooperation with the office, the bank introduced an automated check of credit histories through the office, an on-line check of passports through the database of Ministry of Internal Affairs and a verification of enterprises for insolvency through databases of the Ministry of Justice of Ukraine. A conservative evaluation of risks in combination with the set of those measures provides a quality bank portfolio.
Andrey Ignatov Head of Transaction Risk Management of Platinum Bank gave his comments: “Effective instruments for evaluation of loan office and a correctly structured work of Risk Department allow us to speak about a real saving of bank funds. Due to checks of details from the credit history database the bank secured about 3 mln. hrn. гривен, about 400 000 hrn due to verification of enterprises for insolvency and more than более 200 000 hrn – due to lost passports databases. These figures speak for themselves”.
Antonina Palamarchuk, Board Chair of CJSC “First Ukrainian Office of Credit Histories” stressed: “In current situation, those banks are winning which actively use products of Credit History Offices to reduce credit operations risk. Platinum Bank is one of the most progressive banks in cooperation with FUOCH and derives a real economic effect from our cooperation”.