| Abstract [eng] |
Issuing credits is one of the main bank’s activities. Each bank takes a credit risk by giving the credits. Credit risk is the most important risk of all and requires exceptional consideration, because potential losses caused by credit risk can be huge. If correct and accurate credit risk evaluation models are used to evaluate the credit risk, it helps to reduce the credit risk and increase the stability and reliability of the bank. That is why it is so important and topical to perform the analysis of the credit risk evaluation and credit ratings models and to make corrections for adoption these models for credit risk evaluation of Lithuanian companies. The object of this working paper – credit risk evaluation and assigning credit ratings models. The scientific problem: although credit risk evaluation and credit ratings methods and models are broadly analyzed and applied in practice, but these models are more designed for large foreign markets, which significantly differs from Lithuania’s market and because of that the problem of an adopted credit risk evaluation model for Lithuanian companies exists. The purpose of this working paper – to formulate the credit risk evaluation model adopted for Lithuanian companies. This working paper consists of three chapters: theoretical, analytical and results. In theoretical chapter risk, risk kinds, risk measurement models allowing to measure creditworthiness and assigning credit ratings models are analyzed. In analytical chapter the analysis of quantitative and qualitative credit risk evaluation indicators is performed, the principals of evaluation are analyzed. In addition, methodology of the research, which provided with additional information about credit risk evaluation, is described and tentative assumptions of the credit risk evaluation model are formulated. In results chapter research’s results are analyzed and presented, according to research’s results credit risk model is formulated and using formulated model the credit risk of a few Lithuanian companies is determined. The final result of this working paper – formulated credit risk evaluation model, which allows to evaluate the credit risk of Lithuanian companies more accurately and objectively, because the model is formulated according to credit risk evaluation expert – analysts practice and Lithuania’s market specifications. This paper work consists of 65 pages, 23 tables, 10 figures, 4 appendixes, 39 literature sources. |
