Credit risk management
Nordea Bank pays great attention to credit risk management. One of its key financial objectives is to secure high loan quality.
The Bank has established a separate division responsible for credit risk management. The risk management division of the bank is headed by Mr. Sergejs Babuskins.
The key objectives and tasks of the risk management division are as follows:
- To assessment the level of credit risk and to secure adherence to the credit policy of the Bank;
- To develop an efficient credit process in cooperation with other business units of the Bank;
- To update regularly in-house regulations related to lending;
- To develop and elaborate credit analysis skills of the bank offices employed in corporate banking and retail banking divisions of the Bank;
- To secure adherence to the principal under which a credit rating must be assigned to each and every borrower in strict compliance with the model recommended by the Nordea Group;
- While making provisions for possible losses to secure strict compliance by the Bank with the regulations of the Bank of Russia and requirements set by the Nordea Group (in case of IFRS);
- To draft, up-date and support risk analysis models and techniques used for credit analysis purposes;
- To arrange day-to-day operations of the Credit Committee of the Bank.
In its credit risk management efforts Nordea Russia adheres to the principals applicable to all the member banks of the Nordea Group set under a common strategy of the Group:
- Diversification of the loan portfolio by industry;
- Long-term business relations with and comprehensive credit assessment of each customer;
- A business unit of the Bank which renders services to the customer shall bear responsibility for maintenance of business ties with the relevant customer;
- Adherence to a good faith approach and to high ethical standards in business.