Develop Databases

This is to develop databases for internal model to be developed financial institutions within the new capital agreement (Basel II). To identify elements of credit risk probabilistic; adapting widely accepted models. Therefore the credit institutions should establish efficient schemes of administration and control of credit risk which are exposed in the development of the business, resonance at its own risk profile, market segmentation, based on the characteristics of the markets in which it operates and the products offered; It is therefore necessary that each entity develops its own scheme of work that ensure the quality of their portfolios and also allow to identify, measure, monitor / mitigate and monitor the counterparty risk exposures and expected losses, in order to maintain adequate coverage of provisions or technical patrimony. The methodology for the management and control of credit risk phases: identification, measurement, control and monitoring of the risk are essential to mitigate the risks: (see – management and control of business risks by Felix Campoverde) the criterion for the granting of conservative or liberal credit policy formulation; must not depend on whims or agency managers, but also many circumstances and situations: the credit rating by types of customers, products, profiles of the prospectus of credit, endogenous and exogenous factors (market) of the lender, since granting a credit entails the need to find a balance between the imperative to invest in customer (commercial vision) andother side, the increase in financial needs and their costs (economic view). Depending on the situation at each moment and situation, the entity must establish conditions or other credit-granting policies. For example, in inter-annual periods, depending on the seasonality of the product, or depending on each situation in the environment economical. (If you remember the topic exposed in management and control of business risks analysis of credit continues to be quantitative and qualitative). The symptoms and signs of the behavior of the loan portfolio are essential factors for the classification of current and future customers, so the methodologies and analytical techniques based on the historical behavior of the operations of credit and quotas, for determining the expected loss on the basis of the likelihood of non-compliance, the level of exposure and the severity of the loss, for the calculation of these components must have database a minimum of three years immediately preceding, containing sufficient for the calculation of losses expected.